Wind and solar power plants are becoming more prevalent forms within the energy industry as the world searches for alternative ways to produce energy without harmful chemical emissions. Having an increased number of these types of power plants creates more complex situations where wind power valuations are needed. Placing a value on wind projects provides a better understanding of residual values, which are necessary when determining the facility’s overall sale price and worth. A wind project valuation is also needed in property tax, insurance and tax reporting purposes. Appraisal Economics realizes that knowing a wind power facility’s value is an important requirement for various situations, and that it can also be a complex process to complete. We invite you to contact us with your specific situations, or to learn more about our other appraisal services, including patent valuations.
Calculating Wind Project Value
Appraisal Economics provides an accountable, timely wind project valuation using proven methodologies that are recognized across the industry. Combinations of cost approach, income approach and market approach methods are used throughout the wind power valuation process to determine overall value. Our experienced professionals take a step-by-step approach to ensure the most accurate, defensible report.
Using a cost approach method, a representative will first visit the facility where we will inspect its overall condition, including the level of physical and functional capabilities in order to determine the overall economic obsolescence. Then we review power purchase agreements, construction cost data, income and any other relevant documentation. If engineering drawings are available, we use those along with site takeoffs to estimate the overall facility reproduction cost. Then we will analyze historical financial data using an income approach method which allows preparation of a pro forma cash flow that models the facility’s expected earnings. During a wind project valuation, these expected earnings will be discounted to present value in order to reflect the fair market value of the wind power facility. A market approach will be used to value the wind power project if adequate market data is available. Comparable sales of similar facilities will also be taken into account where applicable. An estimation of the remaining useful life of the facility and its residual value completes the wind project valuation.
Our knowledgeable professionals have over fifteen years of experience in power plant valuation services. We have unsurpassed appraisal experience and a keen understanding of coal, nuclear, biomass, solar power valuation services and much more.
INDEPENDENT VALUATION EXPERTS
Appraisal Economics is a trusted industry leader, providing a wide array of services for a variety of businesses across many different industries. We stand out among valuation firms catering to the power industry because we have the skills and credentials required to support and stand behind our power plant valuations. Our clients expect a high-level of service from our experienced, knowledgeable professionals, and we strive to provide timely and supportive power plant valuations.
Please take a moment to browse our site, or for more information contact Joseph Kettell at +1 201 265 3333 or JKettell@ae-us.com at any time.