Investment Appraisal

Investing in energy projects is a significant decision for any business at any time, yet it is amazing how the process for evaluating investment opportunities continues to leave consumers passing up good energy investment projects, or worse, investing in sub-optimal projects.

The recent focus on carbon reduction has led to a number of organisations issuing arbitrary targets for reductions, often in excess of 20% within five years. As noble as these objectives may be, they often have no relation to the pipeline of projects available and the capital allowance hurdle rates in force.

M&C provides a comprehensive process for valuing available projects and monitoring those in progress as conditions change.  This ensures that your organisation focuses its resources and capital on the best projects available, that your project pipeline is consistent with corporate objectives and, most importantly, that any project meets your publicly quoted targets.

Project Pipeline Management

Many consumers have arbitrary targets for reducing energy consumption or carbon emissions.  But they often don’t know if they have enough potential projects to meet those targets, or if those projects meet investment criteria.

M&C manages and maintains a matrix of all potential opportunities at a site level, which for some consumers can be hundreds or thousands of projects.  We build valuation models of each project, so we can present a pipeline of projects by IRR, allowing you to see which are viable based on cost of capital, which return greater than a bond and which require subsidies to complete.

This list is re-valued each month, so you can focus your development resources on those projects offering the best return on investment, and stop focusing on those that do not.

Project Evaluation

Many clients consider investing capital in major energy projects such as Wind Turbines, EFW, Biomass, Solar or CHP.  These projects can involve investing your own capital or buying a long term PPA from a developer that provides the capital for the project.

M&C supports you by valuing the project from your perspective as a capital investor, your perspective as a buyer of a PPA and their perspective as developers.  From this analysis, M&C supports the negotiation of the project transferring value from the Project Developer to you.  Finally, M&C supports the negotiation of the contractual documentation that underpins the financial close of the project.

Investment Opportunity Management

Once our project pipeline management service has helped you approve a project, you must go through a number of due diligence processes, such as proving technology, identifying contractors and creating a fuel supply chain.  All of these processes demand market experience and spare resources that many consumers do not have.

M&C has the ability, the experience and the resources to support these processes until contractors are in place, and can even manage the project through to completion.