Zelya Energy

Drawing on our experience in investment valuation and business plan development for wind farm acquisitions and projects under development, we have built specific methods and tools for financial modeling in this sector.

Financial evaluation of wind assets

Our experts in M&A, project finance, and private equity support you with:

  • Robust evaluation of project cash flows: sale prices under feed-in tariffs and market prices, network usage costs, local taxation, etc.
  • Financial modeling and profitability analysis (Base Case; WACC);
  • Negotiation of acquisition financing terms (debt-equity structure; investment conditions).

We provide tailored advisory services to all stakeholders involved in wind project, farm, and portfolio transactions.

Financial evaluation of wind assets

Our Support

Review of business plans and financial projections (Base Case Model)

Profitability and financial viability analysis for wind projects and portfolios

Financial modeling and valuation of wind farm sale prices

Advisory support on acquisition and divestment terms

Scope of Assistance

Step 1 – Defining assumptions for the financial model

Collecting and assessing the relevance and uncertainty of technical and economic assumptions, simulating missing data, and benchmarking against comparable French projects, based on Zelya Energy’s regulatory and technical expertise.

Step 2 – Establishing a valuation range

Determining a range of values for the asset or target company, depending on its age and technology, or—if under development—its probability of success and any co-development agreements with the seller.

Step 3 – Analysis and recommendations

Critical review of valuation results, benchmarked against observed market transactions for comparable projects and portfolios: At what prices are similar wind projects being acquired at the time of analysis?

Wind financial model

Key Deliverable

A summary note detailing the assumptions and results of the financial model, including the different valuation ranges obtained.

Related Services

The financial model can build on the results of:

Technical due diligence, performance studies, and failure risk analyses, as well as assessments of potential output increases

Regulatory due diligence to assess payment schedules and success probabilities of different projects

Simulations of feed-in tariff mechanisms

Analysis of O&M contracts and insurance policies

Description & Summary

Areas of expertise of Zelya Energy Consulting - Financial modelling of wind farms - How to make it

Review and validation of your business plan and financial projections (Base Case Model):

Complete financial modeling and evaluation of a wind farm project selling price

Wind power price trends: https://windeurope.org/wp-content/uploads/files/about-wind/reports/Financing-and-Investment-Trends-2019.pdf 

Profitability and financial sustainability analysis of wind farm projects and portfolios

WACC for wind energy projects: what are the appropriate parameters for the beta, debt ration, cost of capital/equity: https://ec.europa.eu/research/participants/documents/downloadPublic?documentIds=080166e5daaba9f4&appId=PPGMS  / https://www.sciencedirect.com/science/article/pii/S0140988320301237  / https://www.iea.org/articles/the-cost-of-capital-in-clean-energy-transitions and Zelya Energy own methodology:WACC assessment of energy assets

Assistance in the definition of appropriate conditions and investment terms for a wind farm transaction

Key words: financial model, wind farm, valuation of wind farm, methodology, advisory, experts