Analyses on wind and solar PV assets

We have updated our studies on market valuation of wind and solar PV assets. This year we have added another 99 transactions to our database, which now totals 474 transactions. Based on regression on these 474 transactions with onshore wind, offshore wind and PV solar farm assets we estimate the price paid by investors in different stages of development of the projects. 

In addition to these studies we updated our paper that describes the key elements in a best practice business case analysis on wind power. The paper contains examples and benchmarks from more than 100 wind farms, 45 international market studies on wind farm economics as well as on our extensive experience from acting as financial advisor in more than 50 wind projects.

Below you find links to global results from the valuation studies and a link to the paper on best practice in establishing a wind investment case. Furthermore it is possible to order the transaction dataset via the links below.

A market approach for valuing wind farm assets – Global results

Based on a statistical approach we assign different values to the individual development stages of a wind farm project. We estimate an onshore installed capacity multiple of approx. EUR 1.7m per MW while the offshore installed capacity multiple is somewhat higher at approx. EUR 4.5m per MW.

Due the size of the dataset we have been able to illustrate and estimate the change in the transaction prices over time. Furthermore we have investigated how the value of a wind farm decreases with its age due to the diminishing remaining cash flows of the project.

The paper with global results is available here

Transaction data details and geographical analyses can be ordered here

A market approach for valuing solar PV farm assets – Global results

Based on a statistical approach we assign different values to the individual development stages of a solar PV farm project. We estimate an installed capacity multiple of approx. EUR 2.0m per MW based on an average of 2014 and 2015.

This multiple indicates a drop in transaction prices on solar PV assets which we illustrate in a time analysis that shows how prices on installed capacity has dropped approx. EUR 2.4m per MW since 2011.

The paper with global results is available here

Transaction data details and geographical analyses can be ordered here

Establishing the investment case – Wind power

While the 2 papers above apply a market approach for valuation, this paper serves as a guide for a cash flow based valuation of wind projects. We believe that this paper is highly relevant as the sector grows rapidly and as proper business case analyses are important to wind farm developers and asset owners in order to understand project economics, profit opportunities and risks as well as secure financing of projects.

We take you through the key steps to consider when assessing a wind investment case and we give examples on key elements to include in the business case analysis.

The paper is available here