Fair Market Value Appraisal
Geothermal power is one of the most efficient sources of electricity available today. DAI’s appraisal services have supported geothermal projects in a variety of financing applications including lease and debt financing. We have worked for some of the country’s most prominent geothermal developers and operators. DAI is certified by the American Society of Appraisers and can perform appraisals exactly to your level of need.
Recent Experience: DAI has provided valuation and market analysis support for thousands of megawatts of geothermal power projects across several states. DAI appraised several hundred megawatts of geothermal power projects held by a large IPP as part of an acquisition by a private equity fund. To accommodate the buyer’s due diligence efforts, DAI provided critical support in assessing the value of the projects under the shifting regulatory environment in California.
In some cases, litigation is unavoidable. When parties must pursue their claims at trial, clear, credible, and defensible analysis is essential. Although thorough analytical support is a necessity, it is by no means sufficient. The analysis must also be presented in a clear, compelling manner. Highly-technical concepts must be communicated persuasively. DAI’s skilled and well-published staff includes recognized experts in their fields, with decades of experience in power and energy issues. More importantly, communication of technical concepts is a DAI hallmark, widely acknowledged by clients with a wide array of backgrounds.
Recent Experience: DAI provided consulting and expert witness services for a geothermal power investor and developer seeking to dissolve a partnership for development of a geothermal field. DAI’s appraisal and decision analysis experts, in conjunction with technical experts, developed a probabilistic model of the development process that emphasized that, although the planned project had great potential, it faced significant risks as well. DAI’s clear and compelling analytical support helped the client to obtain a verdict in its favor on all counts.
Energy Price Forecasts
Whether it’s forecasting electricity or REC prices in wholesale markets, or estimating post-contract revenue, DAI’s power market experts can provide the price forecasts essential for accurate revenue determination. Our knowledge of forecasting can also provide post-PPA support to facilities that currently possess contracts for their energy and thereby support residual value estimates.
Recent Experience: For a large life insurance company investor, DAI developed annual energy price projections for a 240 MW geothermal project participating in the CAISO market. Although the project had existing contracts, its future value depended heavily on post-contract market prices. By evaluating the likely future regulatory position with regard to the participation of this valuable renewable asset in the California market, DAI was able to support the project’s future value projections throughout the investor’s due diligence process.