operating Renewable Power Assets
Average Annual Generation or Plant Load Factor
Arguably the biggest contributor to price, the PLF or the average annual generation implicitly reflects the quality of the site, materials, construction work and the O&M. Quite simply, higher the PLF, higher the price.
Age is one of the most important value determinants. 20-25 years is, typically, the certified life time of a renewable power plant and the number of years that it will continue to generate revenues is an important factor in its valuation.
Revenue Model, Counterparty and Future Potential
The tariff i.e. revenue per unit, tenure and counterparty play a very critical role in the valuation process. Stability directly adds value to the price i.e. a longer PPA will attract more value than a shorter one.
Some PPAs are not valid throughout the life of the plant and some states allow business model conversions. In such cases, additional revenue possibilities as well as the path to get there must be considered during the valuation process.
Other important value determinants are:
SERVICES WE OFFER
1. Requirement Estimation and Target Parameter
1. Value Determination
© Energyhive Renewables LLP 2014