Acquisitions

Evaluation of wind and solar assets requires a strong understanding of expected future yield, often in a short timescale.

Data rooms may be populated with a wide range of old or recent assessments, operator reporting and raw data.  We do whatever is necessary, through vendor questions, document review or full analysis to leave our clients better informed, and able to bid with confidence.

Our capabilities span pre-construction and operational assets, from single projects to mixed portfolios.  Our track record spans assets of over $1Billion.

Timing is everything

Acquisitions involvement commonly requires rapid delivery of results.  While others rely on high level reviews only, Prevailing is intentionally structured to allow detailed analysis to mitigate risks, even in very short timescales.

This approach leaves bidders better informed, and able to bid with confidence.  Our engineering team brings both experience and analysis to bear through both review and analysis as required.  We are able to complete pre-construction and operational yield assessments in days not weeks if required.

Realistic yield

Such is the importance of yield to the valuation, we are often retained to work alongside broader technical due diligence providers.

There are two key aims to the due diligence of long-term yield.  Firstly the gross yield must be accurately established, either through review or analysis.  Secondly the analysed scenario must match reality.

High quality assessments are often available in the data room, however their relevance to the built project requires careful appraisal.  Prevailing is able to assess and quantify a broad range of impacts on yield that may not have been considered in the original assessment, including environmental losses and constraints, realistic asset availability and performance, forest growth and grid curtailment.

Service summary

Acquisitions support is commonly a two-stage process:

Stage 1 review

A concise report is delivered, using a “traffic light” reporting style to quickly identify key yield risks and required mitigation steps.

  • A detailed interrogation of the data room;
  • Review of available yield reports;
  • High level operational yield assessment;
  • Approximate quantification of any risks to long-term yield;
  • Questions to the vendor.

 

Stage 2 detailed analysis

Following the completion of the Stage 1 review, Stage 2 is available for mitigation of risk and quantification of adjustments to yield estimates.  Our aim is to prioritise and mitigate risks in order to support the highest confidence bid in the time available.

A combination of the following approaches is typically applied to wind and solar farm transactions:

  • Vendor engagement;
  • Full pre-construction yield analysis;
  • Operational yield analysis based on SCADA data;
  • Grid constraint impact quantification;
  • Reconciliation of predicted and operational performance.

 

We also consider the following risks to long term wind farm performance:

  • Forest growth analysis;
  • Noise modelling and mitigation;
  • Wake impacts from neighbouring upwind projects;
  • Turbine loading constraint impact quantification.