In October 2021, Ashish Agarwal, vice-president of the solar business vertical at Blupine Energy Pvt. Ltd., was preparing for an upcoming tender for a 300 megawatt solar project. Relying on his industry experience, Agarwal noted all the assumptions related to the capital and operating expenses for setting up this plant. He wanted to compute a tariff that he could bid that would be competitive while generating a 16 per cent equity internal rate of return—the minimum Blupine required for greenfield projects. Agarwal knew the most critical project risks were a delay in arranging the required land and module price fluctuations, so he wanted to also consider their effect on the rate of return.

Spreadsheet to accompany product W39714.