Zelya Energy advises operators, investors, and lenders in all aspects of hydroelectric and financial expertise, including audits, asset valuation, and WACC assessments.
Extensive experience in hydropower due diligence
Our experts bring between 10 and 30 years of experience in the energy sector, including hydroelectricity. Their expertise covers both small run-of-river plants, from around 500 kW to a few MW, and large dams with capacities reaching up to 100 MW.
We provide in-depth knowledge in regulatory matters, production simulation, grid connection, and rehabilitation project analysis.
Meeting financial stakeholders’ expectations
Our teams are highly responsive and skilled in drafting clear and comprehensive reports, essential for both project finance stakeholders and private equity investors. Their analysis is built on detailed reviews of key issues such as hydro regulation, water resource management, environmental considerations, and mechanical, hydraulic, and electrical equipment.
After identifying all potential risks, our recommendations also include the investment conditions precedent required to mitigate them.
Accurate support to facilitate acquisitions
Due diligence aims to validate the technical and regulatory assumptions feeding the financial valuation model of a company or project. Key questions include: What is the expected evolution of actual flows and related generation? What is the availability rate of the plant? How should incidents of underperformance be explained? Is the grid connection optimized?
Our consultants’ technical and regulatory expertise gives them the ability to critically assess business plans, oversee audits of installations, and provide a reliable opinion on the quality of operations and maintenance.
This expertise is crucial for a sound risk assessment, ensuring our clients’ protection by recommending appropriate investment conditions precedent, and providing robust inputs to the economic models that underpin their valuations.
Types of assignments
Validation of site, resource, equipment selection, and connection scheme
Analysis of administrative procedures, permits, water rights, and environmental constraints
Validation of production assumptions and sales tariffs
Financial modeling and valuation
Performance assessment, failure risk analysis, insurance, and O&M conditions
Recommendations on investment conditions precedent
Regulatory Due Diligence
Objectives
Regulatory due diligence assesses the risks faced by the buyer and provides recommendations on required additional steps and appropriate investment conditions precedent to secure operational rights.
This review typically includes:
Verification of the validity and compatibility of electricity purchase contracts and certificates with plant characteristics
Analysis of easements, environmental constraints, and water rights; assessment of their consistency with historical and projected production
Review of technical and financial proposals or connection agreements, and network access contracts
Evaluation of risks and costs linked to land-use contracts securing the plant, and review of access and ownership rights
Analysis of permits and authorizations; verification of their compliance with current and future operating conditions (environment, reserved flow, safety, noise, construction, operation)
This analysis is often complemented by a review of O&M contracts and insurance policies, to assess how effectively they ensure guaranteed production levels.
Deliverable
A detailed report is delivered, containing an evaluation of regulatory risks, recommended next steps, and suspensive clauses to secure the essential rights of the future owner.
Technical Due Diligence
Objectives
Technical due diligence of operating or developing hydropower plants complements regulatory reviews. It validates technical assumptions and quantifies uncertainties and risks associated with production forecasts.
Scope
Historical analysis of flow data from the site and nearby public stations
Review of maintenance and production reports, and meter data, to reconstruct production history
Quantitative analysis of availability rate history
Associated services
- Evaluation of risks and uncertainties that may affect future operations, and recommendations for corrective measures
- Assessment of grid connection conditions to validate and optimize losses, downtime, and cut-off risks
- On-site audits of hydro plants to assess the performance and condition of hydraulic, mechanical, and electrical equipment, with recommendations on replacement or upgrades
- Performance and failure risk studies to identify causes of under-optimized generation under operating conditions
Information:
Call us at +33.4.93.71.33.11 or contact by Form