Thanks to our expertise in financial models applied to hydropower assets, we have developed specific methods and tools for evaluating and modelling these assets.
Our experts, specialized in Mergers and Acquisitions (M&A), project financing, and private equity, support you in:
Our services and support have been designed to provide expert and tailor-made support to all stakeholders involved in transactions of projects, power plants, or hydropower portfolios, ranging from several hundred kW to multiple MWs. We have also advised producers on the evaluation of the opportunity to take over or renovate large dams.
Review and verification of your business plan and financial projections (base scenario)
Analysis of the economic profitability and financial viability of hydropower projects and plants
Preparation of a full financial model and estimation of the MW sales price in project and operation
Support in defining financial terms for acquisition or sale
Plan and content of assistance
Step 1 - Assistance in determining the financial model assumptions
This step consists first of collecting and assessing the consistency and uncertainty of the technical and economic assumptions of the business plan, simulating them or generating them from ratios observed in the French hydroelectric market for similar projects, based on regulatory analysis and the expertise of Zelya Energy.
Step 2 - Determination of a range of value for the asset or the target company
This step consists of proposing a value range for the hydroelectric park depending on its age and the technology used.
Step 3 – Analysis and recommendations
Finally, we will carry out a critical analysis of the valuation results obtained, comparing them to transaction amounts observed on similar hydropower projects and parks. At what price are similar hydroelectric plants being sold at the time of analysis, with similar configurations, technologies, or water resources?
Zelya Energy provides a note summarizing the assumptions and results of the financial model, as well as the different value ranges obtained
The implementation of the financial model can rely on the results:
of the technical due diligence, the performance study and failure risks, and the study of power increase possibilities dealing with production
of regulatory due diligence
of electricity sales tariff simulation
of O&M contract and insurance policies analysis