Demonstrating due diligence is crucial when both buying and selling operating renewable energy assets. Valuation of a renewable asset portfolio includes many components such as performance, maintenance, o&m contracts and more. In the case of selling, backing your valuation with solid documentation presents a stronger case to investors. On the other hand demanding documentation from a seller can also reduce your risk of buying assets. With proper documentation you can also identify under-performing asset that can generate a better then expected yield. Here is a list of 20 items to track thus ensuring proper valuation of a portfolio to buy or sell.
|1||Documents||Compliance and regulatory information.|
|2||Contracts||Costs the the portfolio is tied down to.|
|3||Warranty information||Provides insight into parts that might require replacement and how often.|
|4||Manufacturer data||To know how well the portfolio should perform.|
|5||Developer information||A point of contact should there be any issues how the portfolio was developed.|
|6||Project details||Detail pertaining to the utility, location and local district policies|
|7||Financial models||How well the portfolio is performing financially.|
|8||Surveys||Documentation to ensure the portfolio is properly inspected.|
|9||Milestones||Provides insight into operational challenges if milestones are not met.|
|10||Point of contacts||Knowing who to approach for complications regarding the portfolio.|
|11||Site designs||Transparency of the project design.|
|12||Expense receipts||Provides insight into recurring and irregular expenses for the portfolio.|
|13||Land lease details||To ensure the rightful use of land and hint at the portfolio lifespan.|
|14||Government subsidies||Costs covered and when they expire or reduce.|
|15||Renewable Energy Certificates (RECs)||Energy produced is recognised as from renewable sources and is traded in the energy market.|
|16||Power Purchase Agreements (PPAs)||The nature of your PPA structure|
|17||Spares||Their cost as part of the portfolio.|
|18||Historical production data||To know how well the assets has been performing.|
|19||Work orders||Shows the operational work involved and how well they were performed.|
|20||Maintenance information||How often an asset should be maintained and in what ways.|
Tracking this information can be a challenge if done manually over spreadsheets, outlook emails, and shared drives.
Asset management software such as Arbox’s Hap can help keep track of all these items and help automate processes. Hap comes with commercial, technical, and financial asset management features consolidated into a single platform. This ensures that renewable portfolios can be reliably managed with ease.
Contact us today to see how HAP® can help you manage your activities efficiently and boost your bottom line.