Renewable Energy
Renewable Energy
We offer many services to support the decision making process of renewable energy projects at different stages of development. As the Renewable Energy Industry matures, investors become more professional and demand more sophisticated analysis leading to better investment decisions. BVint valuation and modelling approach covers all possible scenarios where uncertainty could come from:
- The probability of a failure during the development phases,
- The future probable electricity price,
- The Price of alternative energy sources,
- Other Inputs: Technology, Infrastructure, Operative Costs, etc,
- Site / Weather probable scenarios,
- Technological efficiency and probable losses.
- Government Regulations and Subsidies,
- Political Risk or the probability of loosing the price incentives,
- Country Risk: interest rates, inflation , devaluation.
In times when prices for renewable energy continue to decline and market integration steadily increases, accurate valuations and financial planning is becoming more important. We use the following methodologies:
- VaR (Value at Risk): The Probability-Weighted-Expected- Return Method (“PWERM”) with Monte Carlo simulation is a forward-looking analysis of the possible future financial outcomes. Each possible outcome is driven by all risk drivers with their respective volatilities and probabilities. Probabilities and volatilities with their standard deviations can be determined by reviewing historical patterns in similar REPs.
- Comparables and Multiples according to stage and region: We have more that 250 transactions disaggregated by project stages (development, in construction, and installed/operational)
- Real Option Pricing Models: At each development stage, the CEO can decide on continuing the project or not. Such an option could add a large value to the investment, due to the fact that the majority of the REPs are paid in the last stage and are exposed to high market uncertainty.
We assess “Environmental and Social Impact” as an extra dimension to the traditional ones, risk and return: We assess the value and the risk of the Impact by identifying and measuring all the drivers involved like reductions in the CO₂ missions, Labour increase and many others. We are committed to measure and report the social and environmental performance and progress of our portfolio, ensuring transparency and accountability while informing the practice of impact investing and building the field. Our impact process starts during the valuation of the target company. In general, components of impact measurement we use include the following:
- Establishing and stating social and environmental objectives to relevant stakeholders,
- Setting performance metrics and targets related to these objectives, using standardized metrics wherever possible,
- Monitoring and managing the performance of investees against these targets ,
- Reporting on social and environmental performance to relevant stakeholders,We assess “Environmental and Social Impact” as an extra dimension to the traditional ones, risk and return: We assess the value and the risk of the Impact by identifying and measuring all the drivers involved like reductions in the CO₂ missions, Labour increase and many others. We are committed to measure and report the social and environmental performance and progress of our portfolio, ensuring transparency and accountability while informing the practice of impact investing and building the field. Our impact process starts during the valuation of the target company. In general, components of impact measurement we use include the following:
- Establishing and stating social and environmental objectives to relevant stakeholders,
- Setting performance metrics and targets related to these objectives, using standardized metrics wherever possible,
- Monitoring and managing the performance of investees against these targets ,
- Reporting on social and environmental performance to relevant stakeholders,
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Contact Us
- +44 (0) 7443 758262
- info@bvint.com