Practice Test Geeks(REP) Certified Renewable Energy Professional Practice Test
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Project Planning & Financial Analysis Flashcards

7 cards from real REP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

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  1. A solar developer is evaluating two sites with identical capacity but different solar irradiance. Site A has a P50 yield of 1,800 kWh/kWp and Site B has 1,600 kWh/kWp. If both sites have the same installed cost, which financial metric is most directly affected?

    Answer: Levelized Cost of Energy (LCOE)

    LCOE is directly affected by energy yield; higher irradiance at Site A lowers the cost per kWh produced.

  2. In a renewable energy project pro forma, a 'sculpted debt service' structure means:

    Answer: Debt repayments vary to match the project's expected cash flow profile

    Sculpted debt service tailors repayment amounts to align with projected cash flows, maintaining a target DSCR throughout the loan period.

  3. Which permitting pathway typically applies to large-scale offshore wind projects in the United States?

    Answer: Bureau of Ocean Energy Management (BOEM) leasing and permitting process

    BOEM manages the leasing, site assessment, and construction/operations permitting for offshore wind on the Outer Continental Shelf.

  4. A wind project's capacity factor is 35% and installed capacity is 100 MW. Annual energy production (AEP) in MWh is approximately:

    Answer: 306,600 MWh

    AEP = 100 MW × 0.35 × 8,760 hours/year = 306,600 MWh.

  5. Which risk is best mitigated through an interconnection queue study conducted early in project development?

    Answer: Unexpected grid upgrade costs that could render a project uneconomical

    Interconnection studies reveal required network upgrades whose costs are allocated to the project, potentially making it financially unviable.

  6. A 'merchant tail' in a renewable energy project refers to:

    Answer: Revenue generated after the expiration of a long-term power purchase agreement

    The merchant tail is the period after a PPA expires when the project sells power at market rates, introducing price risk.

  7. In project finance for renewable energy, 'cash flow waterfall' refers to:

    Answer: The priority order in which project revenues are distributed to various stakeholders

    The cash flow waterfall defines the priority sequence for distributing revenues, typically: operating costs, debt service, reserves, then equity returns.