Maximising the transaction value of wind power assets

When an asset management company needed to transfer its 49% stake in five wind farms in Castilla y León to a buyer giving it 100% ownership of the assets, the company mandated Enzen Spain to deliver a technical vendor due diligence service.

Drawing on its expertise in renewable assets, Enzen's task was to maximize the transaction’s value for the seller, identify and advise on risks and opportunities, and support the customer as a technical advisor during all negotiations.

Already operational for nearly ten years, the wind power assets (which have a 202.5 MW energy capacity) would be coming to the end of their useful life within the next decade. Enzen’s challenge was to use its deep domain expertise of renewable energy to determine the assets’ value.

As part of their transaction advisory service, Enzen’s knowledge practitioners made recommendations on the feasibility of replacing the assets and investigated potential solutions to extend the wind farms’ useful life.

Enzen’s partnership approach entailed a 360-degree technical assessment of the five wind farms in their context, examining climate and historical production data, plus market conditions and other socio-economic factors that would determine potential demand, usage and sustainability. The findings were developed into a detailed future repowering scenario, around which the Enzen team shaped its recommendations.

Enzen’s technical reports on the assets formed an invaluable basis for the customer’s negotiations with the buyers. Similarly, Enzen supported the customer throughout the process until the transaction was completed, advising at technical valuation meetings and assisting in the financial valuation of the assets.

Through our close collaboration with the customer, Enzen positively influenced a major renewables deal, unlocking greater value and efficiency through our deep domain knowledge and expertise.