Three key benefits
- Provided client with comprehensive wind and solar resource, energy production and due diligence assessments that supported the investor’s discussions with prospective buyers
- Ensured commercial viability and bankability of the wind and solar farm projects in the portfolio
- Recommended actions expected to reduce yield uncertainties
The customer challenge
The client, an Asian renewables-focused fund manager, required a technical advisor to perform a due diligence review and resource/energy production assessment for a portfolio of wind and solar farms, which the fund was looking to sell.
DNV drew on its extensive experience from analyses of over 120 GW of wind and solar farm projects worldwide to put together best practice methodologies for the customer.
Specifically, DNV conducted a wind and solar resource assessment, energy generation review and technical due diligence analysis for the asset portfolio with a 900 MW capacity of wind and solar farms in China.
The wind and solar resource assessment conducted by DNV involved the review and quality checking of measured wind and solar data from the sites, correlation of data with long-term reference wind and solar databases and predictive modelling to establish wind speed and solar irradiance variations across the sites.
DNV then considered the results from the wind and solar resource analysis, wind farm layout and solar plant design and equipment performance data provided by the customer and conducted wake modelling using DNV’s Wind Farmer analysis model to predict the gross annual energy output of the solar and wind farms in the customer’s asset portfolio.
To complete the technical due diligence exercise, DNV visually inspected the project sites, topography, installed equipment, civil and electrical infrastructure, interviewed local staff and reviewed the project designs to carry out a comprehensive evaluation of the project conditions.
DNV also provided an analysis of uncertainty in the final energy output prediction, identifying sources of uncertainty in the energy production estimate and made recommendations on actions that can be taken to reduce such uncertainties and close any gaps.
Finally, DNV reviewed from a technical perspective project documents related to the power purchase agreements, engineering procurement & construction agreements, operating & maintenance agreements, turbine supply agreement, module supply agreement and feed-in-tariff.
Benefits to the customer
DNV delivered comprehensive solar and wind resource and energy production reviews and technical due diligence analysis to provide the client with an independent commercial assessment of their projects’ viability and assisted them in their discussions and negotiations with prospective investors.
DNV also conducted an analysis of uncertainty in the final energy output predictions of the projects. Sources of uncertainty in the energy production estimate were identified and recommendations were provided to close any gaps and reduce yield uncertainty.