Investment Evaluation

In a competitive market, the values of electricity generating assets, wholesale contracts, and retail commitments are tied to wholesale market prices.  Optimizing asset values and creating shareholder value in such markets requires the ability to measure value.  Market price forecasting is essential to measuring and creating value.  Accurate long-term market price forecasts will help industry participants take advantage of strategic timing and profit opportunities associated with decisions to build, buy, sell or retire power plants; undertake bulk power transactions; and lock in retail and wholesale customers with fixed prices for extended periods.  Our Investment evaluation services are primarily geared towards the support of specific transactions – either on the buy side or sell side.  These services utilize the common body of knowledge developed through rigorous analytics for capacity and energy modeling, which also aids in the quantifying of risks inherent in buy/sell decisions and in assessing the value of strategic and operational flexibility.  Our understanding of the unique aspects of each market and the ability to simulate and test different investment hypotheses enables us to provide our clients a comprehensive array of options and strategies.  The consultants at Enerlytix have participated in transactions in excess of 10 GW valued over $10 billion.  Whether they are seeking to participate in the energy space through asset divestiture processes or negotiated transactions, we can assist prospective investors through the following services -

  • Asset acquisition due diligence and transaction support
  • Valuation of generation assets in support of investment, divestment or financing opportunities
  • Develop screening models in support of acquisition and greenfield development opportunities
  • Valuation of asset retirement or repowering options
  • Modeling liaison between asset developers, power marketers and financial institutions
  • Valuation of structured products such as heat rate options, full requirements load services, energy derivative structured products
  • Valuation of traditional power purchase agreements, tolling agreements or other structured transactions to purchase or sell energy or capacity
  • Valuation and marking contracts to current market value for financial statement disclosure

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