Zelya Energy

Financial Models & Hydropower plant valuation

Drawing on our expertise in financial modeling of hydropower assets, Zelya Energy has developed dedicated methods and tools for valuation and modeling in this sector.

Our experts, specialized in Mergers & Acquisitions (M&A), project finance, and private equity, support you in:

  • Accurate assessment of projected cash flows: electricity purchase tariffs and market prices, grid connection costs, local taxes, etc.
  • Financial modeling and WACC determination (baseline scenario, relevant parameters for the assets)
  • Structuring and negotiating acquisition financing terms (debt, equity, investment conditions)

Our services are designed to provide tailored support to all stakeholders involved in transactions of projects, power plants, or hydropower portfolios, from several hundred kW to multi-MW assets. We have also advised producers on the evaluation of acquisition or refurbishment opportunities for large dams.

Our Support

Review and validation of business plans and financial projections (base case)

Analysis of the economic profitability and financial viability of hydropower projects and assets

Development of a complete financial model and estimation of MW sale price for projects and operating plants

Support in defining financial terms for acquisitions or disposals

Support approach and content

Step 1 – Definition of financial model assumptions

Collection and assessment of the consistency and uncertainty of technical and economic assumptions in the business plan, including benchmarking against comparable French hydropower projects, based on regulatory analysis and Zelya Energy’s expertise.

Step 2 – Determination of a value range for the asset or target company

Estimation of a value range for the hydropower plant depending on its age and technology.

Step 3 – Analysis and recommendations

Critical review of valuation results, benchmarked against transaction data for comparable hydropower assets, technologies, and resource conditions.

Deliverable

Report

Zelya Energy delivers a report summarizing the assumptions and results of the financial model, including the value ranges obtained.

Related services

The financial model may build on the results of:

Technical due diligence, performance studies, failure risk assessments, and power uprating analyses

Regulatory due diligence

Electricity price simulations

O&M contract and insurance policy reviews

Also see

Production forecasts & electricity tariffs

Due diligence

Selected client references

Information:

Call us at +33.4.93.71.33.11 or contact by Form

Description & Summary

Business plan and financial evaluation of hydropower plant. Our teams are expert in setting up robust and detailed financial models for the correct evaluation of the value of your hydropower asset. We rely on a solid know how and experience of what are the capex and general opex of hydroelectricity power plants, and use different assesssment and evaluation methodologies, such as multiples and Discounted Cash Flows (DCF) - combined with a strong expertise of WACC parameters values in he energy sector - to obtain and indicate the most appropriate selling or acquisition values.

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