Analysis
Analyses on wind and solar PV assets
Global results | April 2016
This year we have added another 82 transactions to our database, which now totals 556 transactions. Based on regression on these 556 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.
Below you find links to global results from the valuation studies. Furthermore it is possible to order the transaction dataset via the links below.
A market approach for valuing wind farm assets
In recent years years investors all over the world have paid increasing attention to the renewable energy sector.
This trend has translated into rapid renewable energy commercialisation and considerable industry expansion, of which the wind industry is a good example.
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 1.6m per MW while the offshore installed capacity multiple is somewhat higher at approx. EUR 4.6m 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
In recent years investors all over the world have paid increasing attention to the renewable energy industry.
This trend has translated into rapid renewable energy commercialisation and considerable industry expansion, of which the solar photovoltaic (PV) industry is a good example. According to Bloomberg Business, new wind and solar power accounted for about half of all new generation last year. Around 64 GW of new wind power and 57 GW of new photovoltaics was added, representing an increase of 30% from 2014.
The increase in annual installed solar PV capacity may be explained by the past years’ reduction in panel costs.
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 1.5m per MW based on a regression analysis on transactions covering the years 2014-2016.
This multiple indicates a drop in transaction prices on solar PV assets which we illustrate in a time analysis that shows how the price estimate has decreased since 2012.
The paper with global results is available here.
Transaction data details and geographical analyses can be ordered here.
