OptValue
Power Asset Valuation
Power Asset Valuation
OptValue is a decision-support tool designed to model and simulate the economics of new and existing power generators. It accounts for various uncertainties, including renewable output and spot prices and helps you determine financial metrics (e.g. NPV, IRR) that align with the risks associated with the construction and operation of power plants. This enables you to compare various generation technologies, balancing risk and return effectively.
Technology evaluation
Assesses different new or existing technologies for customized investment decisions.
Comprehensive factors
Considers investment costs, operating costs, different PPA structures, taxes, and regulatory charges.
Financial metrics calculation
Allows the probabilistic calculation of financial metrics such as EBITDA, NPV, and IRR.
Goal seek analysis
Calculate the contract price needed to reach a targeted profitability and vice-versa.
Impact assessment
Assesses the impact on results of different scenarios for total CAPEX, operational delays, revenue reductions, and exchange rate fluctuations.
Scenario approach
Considers uncertainties with the underlying correlations and impacts on the economics of scenarios for spot prices, non-conventional renewable output and hydrology.
OptValue includes a database with different scenarios for the main variables representing the dynamic of the Brazilian power sector from a physical and commercial perspectives (e.g. hydro generation, spot prices and renewable generation). These scenarios come from PSR's hydrothermal dispatch model named SDDP. In this way, OptValue calculates the cash flows for each scenario, resulting in a distribution probability for the financil metrics of interest.
OptValue is compatible with all the market rules of the Brazilian Power Sector (BPS) as it allows the direct import of the simulation of CCEE's algebraic rules via PSR's SCE model, and it is capable of modeling the dynamics (e.g. energy clearing and settlement, penalties in case of delays, financial exposure in case of underperformance, etc) of the typical PPAs negotiated in the market.
In addition, the model also takes into account the most relevant sector charges of the BPS (ANEEL inspection fee, financial compensation for the use of water resources, etc.), Brazilian taxes on revenues and profits, and provides flexibility to input specific financing strucutres (e.g. BNDES or BNB specific conditions).
Our team provides not only support services on software, but also an interactive knowledge base platform and the possibility to organize training sessions.