ENEL’s Solar Venture in Peru Lingyan Yu Risk Analysis and Modeling Professor White 1
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
1
ENEL’s Solar Venture in PeruLingyan YuRisk Analysis and ModelingProfessor White
2
POV Profile: Italian Multinational Electricity Company • Upcoming renewable PPA auction in
Peru• 144MW Solar Power Plant• Pay-as-bid sealed bid auction system • main competitor might bid as low as
$49/MWh for the PV project
StrategiesBid Price Expected NPV Likelihood of Winning
Strategy 1 $46/MWh ($1,313,000) Very High
Strategy 2 $48/MWh $8,493,000 High
Strategy 3 $50/MWh $17,213,000 Low
3Equity IRR Comparison
Project NPV Comparison
Uncertain Inputs
Construction periodConstruction Cost
Operating Expense Level
PPA Inflation Index
Credit Spread
O&M Inflation Index
4
Construction Cost is Dependent on Construction Time (Delay)
Credit Spread is Dependent on Biding Price (Future Revenue)
5
Index PPA Rate Random Walk
6Strategy 1Strategy 2Strategy 3
Strategy 2
7
Q&A
Related Documents
