Fair Market Value Appraisal
Wind energy is one of the fastest-growing and most cost competitive sources of renewable energy. DAI’s appraisal services have supported wind projects in a variety of financing applications, including project finance, lease, and tax equity partnership. DAI is certified by the American Society of Appraisers and can perform fair market valuation analyses exactly to your level of need.
Recent Experience: DAI has provided appraisal support for thousands of mega-watts of wind projects for some of the largest developers in North America, including NextEra, Iberdrola, and Invenergy.
Today’s energy markets are complex. A DAI market study can help investors and lenders evaluate both the demand-side and supply-side characteristics of a regional market, including long-run energy demand capacity additions and retirements. DAI’s price forecasts are derived from a proprietary power market model developed in conjunction with faculty at Carnegie Mellon University.
Recent Experience: DAI has served as market advisor for a number of projects, including advising Citigroup and ArcLight on the acquisition of the $2.1 billion Caithness renewable energy portfolio.
Purchase Option Evaluation
In order to make optimal use of the various tax-related incentives available to wind developers, many wind power projects have been financed as partnerships between developers and tax equity investors. In many cases, these partnerships permit the developers to acquire the tax equity investors’ interest after a certain period of time at the then-current fair market value. DAI has supported investors and developers with the exercise of these purchase options and the valuation of partnership interests in wind projects. These assignments typically involve complex financing structures that highlight not only DAI’s attention to detail, but also our knowledge of major wind market areas resulting from our extensive experience.
Recent Experience: DAI served as the developer’s appraiser as part of the purchase option exercise process for a 97 MW wind project in Minnesota. DAI’s support involved appraising the facility, as well as providing consulting support during negotiations with the project’s other investor.
Energy Price Forecasting
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 estimation. 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: On behalf of Wachovia Securities, DAI developed annual energy and REC price forecasts for the MISO region for a 180 MW wind project spanning several counties in North and South Dakota.
Incentive Program Evaluation
In addition to market-based compensation, DAI forecasting and market analysis services also cover the various nonmarket-based incentive programs that have emerged at the state and federal level. We have studied the impact of state renewable portfolio standards on wind projects and examined the potential for RPS regulation to change investment in renewables. In addition to our familiarity with all major incentive programs, DAI has also had experience with all major financing structures used for wind, including lease, tax equity, and “flip” partnership structures.
Recent Experience: In conjunction with one developer’s financial advisor, DAI evaluated the developer’s project pipeline based on both technical and economic considerations. Projects were examined individually in order to determine the most effective incentive strategy to pursue across the portfolio.
- Asset Management
- Construction Monitoring
- Energy Price Forecasts
- Equipment & Loan Collateral Analysis
- Fair Market Value Appraisal
- Incentive Program Evaluation
- Independent Engineering Services
- Litigation Support
- Market Studies
- Production Forecasts
- Property Tax Valuation
- Purchase Option Evaluation