University of Calgary

Arman Kiani

  • Adjunct Associate Professor
  • Sessional Instructor

Bio

Arman Kiani, PhD, MBA, PENG is an Adjunct Professor at Haskayne School of Business, University of Calgary. Dr. Kiani's area of research interest is focused primarily on the intersection of power generation finance, financial engineering analysis based on derivative pricing methodology, quantitative energy risk, power and gas fundamental analysis. Arman has presented keynote, invited, paper presentations, and has authored or coauthored more than 30 frequently cited articles and on topics ranging from electricity market design, capacity market fundamental, renewables finance, and smart grid.

 

FNCE 559 - Renewable Power Generation Finance

FNCE 559.4 - Selected Topics in Financial Management (Financing Renewable Energy)

LEC 1 TR 17:00 - 19:45 SB 148

A shift in power generation investment from large-scale centralized power plants to small-scale, distributed renewable sources is evolving around the world. A higher integration of small solar and wind plants stems from lower equipment costs, a push to de-carbonize power and replace retiring fossil-fuel capacity. This course focuses on presenting an opportunity to apply finance theory to renewable energy business cases, learn how to use a financial model to assess the financial viability of investment under various regulatory frameworks and depending on the availability of public support mechanisms, understand what barriers exist to renewable energy project implementation from a financial perspective, and understand what opportunities exist to facilitate renewable energy implementation.

The course aims to empower students to incorporate appropriate financing techniques into their decision-making pertaining to renewable energy projects.


By the end of the course, students should be able to: 

  • Build a financial model for a renewable energy project to capture operating and investing cash flows and derive a possible financing structure.
  • Describe some important financial metrics such as IRR, NPV, DSCR, and learn how to calculate key ratios to perform a sensitivity analysis.
  • Learn how to use a financial model to assess the financial viability of investment under various regulatory frameworks and depending on the availability of public support mechanisms.
  • Understand what barriers exist to renewable energy project implementation from a financial perspective, and
  • Understand what opportunities exist to facilitate renewable energy implementation.

Course Outline

Session

Title

Description

 1

 

Review of finance models, Cost of Capital, and CAPM

Discussion on Cost of Capital, Cost of Equity, CAPM methodology and WACC calculation.

2

Review of Discounted Cash Flow (DCF) analysis

Investment analysis with DCF model, IRR, NPV, DSCR and revenue for the renewable energy projects.

3

Regulatory Framework and Electricity Market

Introduction to electricity market, spot market, future market, risk management and hedging

4

Wind Power Plant Investment part I

Revenue recognition for wind projects, cash flow analysis and financial viability

5

Wind Power Plant Investment part II

Tariffs, Incentives, and Tax implications

6

Midterm Exam

Midterm exam covering first 3 classes of content. 

7

Solar Power Plant Investment part I

Revenue recognition for solar projects, cash flow analysis and financial viability

8

Solar Power Plant Investment part II

Tariffs, Incentives, and Tax implications

9

Innovative financing opportunities

Class presentation

10

Merger and Acquisition topics in renewables finance

Brief overview on M&A principles for renewable energy projects

11

Final Exam

Final Exam covering content after the first 3 classes

 

Selected Publications


1. A.Kiani, A. Annaswamy, and T. Samad "A Hierarchical Transactive Control Architecture for Renewables Integration in Smart Grids: Analytical modeling and stability," IEEE Transactions on Smart Grid, Volume 5, Issue 4, pp. 2054 - 2065, July 2014. Cited by 21 from 2014.

2. A.Kiani and A. Annaswamy, "Dynamic Mechanism for Wholesale Energy Market: Stability and Robustness" IEEE Transactions on Smart Grid, Volume 5, Issue 6, pp. 2877 - 2888, Nov. 2014.

3. A.Kiani and A. Annaswamy, "Equilibrium in Wholesale Energy Markets: Perturbation Analysis in the Presence of Renewables," IEEE Transactions on Smart Grid, Volume 5, Issue 1, pp. 177 - 187, Jan. 2014.

4. A.Kiani, Kia Fallahi, Naser Pariz, and Henry Leungu, "A chaotic secure communication scheme  using fractional chaotic systems based on an extended fractional Kalman filter," Elsevier Journal on Communications in Nonlinear Science and Numerical Simulation, Volume 14, Issue 3, March 2009.

5. A.Kiani, M. Abdulrahman, and D. Wood, "Explicit Solutions for Simple Models of Wind Turbine Interference," Wind Engineering, Volume 38, Number 2, pp. 167-180, April 2014.

6. Kiani and A.M. Annaswamy, "Wholesale Energy Market in a Smart Grid: A Discrete-time Model, Relation to Nash Equilibrium, and the Impact of Delays," Control and Optimization Methods for Electric Smart Grids, Aranya Chakrabortty , Marija D. iIlic (Editors), Springer Verlag, 2011.

7. V.Sabzevari, A.Azemi, A.Kiani, "Arrhythmia Detection and Classification Using A Wavelet and ICA" Encyclopedia of Healthcare Information Systems, IGI Global (formerly Idea Group
Inc.), USA, pp. 115-121.

8. Kiani, "System Restoration Event in Alberta: Challenges and Opportunities," In Proceeding of AESO Technical Conference, March 2015.

9. J. Hansen, J. Knudsen, A. Kiani, A. M. Annaswamy, and J. Stoustrup, "A dynamic market mechanism for markets with shiftable demand response," In Proceeding of the 19th IFAC World Congress, Cape Town, South Africa, August 2014. IFAC.

10. A.Kiani and A. Annaswamy, "A Hierarchical Transactive Control Architecture for Renewables Integration in Smart Grids," IEEE Conference on Decision and Control (CDC), pp. 4985-4990, Hawaii, USA, December 2012.

11. Y. Mozafari, A. Kiani, and S. Hirche, "Oscillator Network Synchronization by Distributed Control," IEEE Multi-Conference on Systems and Control MSC, pp. 621-626, October 2012 .

12. A.Kiani and A. Annaswamy, "Wholesale Energy Market in a Smart Grid: Dynamic Modeling and Stability," IEEE Conference on Decision and Control, pp. 2202-2207, Orlando, USA, December 2011.

13. A.Kiani, and A. Annaswamy, "Distributed Hierarchical Control for Renewable Energy Integration in a Smart Grid", IEEE (PES) Conference on Innovative Smart Grid Technologies, Washington, USA  2012.

14. G. Tran, A. Kiani, A. Annaswamy, Y. Sharon, and A. Legbedji, "Necessary and Sufficient Conditions for Observability in Power Systems," IEEE (PES) Conference on Innovative Smart Grid, Washington, USA 2012.

15. A.Kiani and A. Annaswamy, "Perturbation Analysis of Market Equilibrium in the Presence of Renewable Energy Resources and Demand Response," in IEEE Innovative Smart Grid Europe, Gothenburg, Sweden, 2010.

16. A.Kiani and A.Annaswamy "The effect of a smart meter on congestion and stability in a power market", in IEEE Conference on Decision and Control, pp. 194-199, Atlanta, GA, USA 2010.

17. A.Kiani and M.R. Akbarzadeh, "Intelligent Extractive Text Summarization Using Fuzzy Inference Systems", IEEE Conference on Intelligent Engineering, pp.149-153, April, 2006.

18. A. Kiani and M.R. Akbarzadeh, "Automatic Text Summarization Using Hybrid Fuzzy GA-GP," in the Proceeding of the 11th IEEE International Conference on Fuzzy Systems, pp. 270-278, Vancouver Canada, 2006.

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Haskayne School of Business

Main Campus:
Scurfield Hall,
2500 University Dr NW,
Calgary, AB T2N 1N4

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6th Floor, 906 8th Avenue SW,
Calgary, AB T2P 1H9

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