The Importance of Control in Renewable Energy Investments
Renewable energy projects are highly CAPEX-intensive, requiring careful management of all variables from the outset. At Nenuphar Advisors, we believe that having full control from day one is a significant advantage, especially when the goal is to create an attractive investment asset.
Resource Assessment: PVsyst & WindPRO
The quality of the available renewable energy resource is a critical factor in project viability. If energy yield predictions are miscalculated, the project may become unattractive to investors, leading to wasted capital. That’s why we rely on industry-standard tools such as PVsyst and WindPRO, which are widely trusted by investment entities. Our partners have extensive experience in managing the data and inputs required for these tools, ensuring accurate and reliable assessments.
Financial Modeling: LCOE, IRR, NPV & ROI
A robust financial model is essential for evaluating a renewable energy project. It must accurately reflect present and future conditions, capturing the true nature of the investment opportunity. Sensitivity analyses play a crucial role in decision-making, as do key financial metrics such as IRR, NPV, and ROI—though some carry more weight than others.
A project should be financially viable even without leverage as a starting point. From there, the outcome depends on the developer’s negotiation skills and financial strength. Additionally, LCOE (Levelized Cost of Energy) calculations—factoring in PPA prices, EPC costs, O&M expenses, and other key inputs—are essential, particularly in public tenders where the lowest electricity price often determines the winning bid.
At Nenuphar Advisors, we ensure that every project is backed by precise technical assessments and solid financial modeling, providing our clients with the confidence they need to invest in renewable energy.