Due diligence of a 50 MW hydropower portfolio under concession

Client: A Tier 1 Western European energy utility · Sector: Hydropower · Mandate: Buy-side due diligence

An integrated due diligence on a 50 MW hydropower portfolio — four operating plants, two under concession regime — in the context of a strategic acquisition. The complexity of concession plants (return assets, residual lifetime, future investment obligations) required dedicated regulatory and financial scrutiny.

What we did

• Reviewed land rights, easements, water rights and concession decrees
• Validated production assumptions (hydrology, availability, downtime) and audited O&M contracts
• Evaluated return asset values and quantified future reinvestment obligations
• Built an independent financial valuation model with downside scenarios
• Drafted investment conditionalities and red flags memo for the deal committee

Result

Two material regulatory risks linked to the upcoming concession renewals were identified and quantified in the valuation. The acquirer renegotiated the offer structure with specific conditions precedent on regulatory clearance and reinvestment commitments. The deal closed on the revised terms, with full risk visibility on both sides.

This engagement is part of our hydropower due diligence practice, integrated within our cross-sector energy and renewable asset due diligence services.

Considering a hydropower acquisition? See our integrated energy and renewable asset due diligence services.