Clir Renewables, a provider of performance assessment software for wind energy, has supported Elemental Energy, a major renewable energy developer and investor, in an M&A consideration by analysing renewable energy assets ahead of acquisition.
The North American renewable energy M&A market is thriving, with a record volume of onshore wind and solar capacity bought and sold in 2019. While a large proportion of wind acquisitions have been for new installations, investors are increasingly looking to buy operational projects that have the potential to generate higher returns than historical performance would imply.
Clir utilised its industry leading software to assess the project that Elemental was considering for acquisition. By analysing turbine SCADA and environmental data alongside a review of operational reports and additional information provided in the data room, Clir was able to provide Elemental with an Energy Yield Assessment and Turbine Health Assessment. Clir also identified potential opportunities to increase production. Despite a complex scope of work, Clir was able to deliver the results to the client within seven days of receiving access to the data room.
Gareth Brown, CEO, Clir, says: “The majority of operational renewable energy projects on the market are underperforming and could deliver a greater rate of return for asset owners. However, identifying the true causes of underperformance from turbine data can be extremely difficult using typical methods of data analysis.
“Clir can assess data, quantify underperformance, and evaluate turbine health significantly faster than traditional data analysis tools to reduce risk and inform decision-making. This allowed Elemental to quickly see the true value of the project ahead of closing the acquisition.”
Daniel Eaton, Director of Project Development, says: “Clir’s analysis has been incredibly helpful in supporting our financial decision-making. In addition to being an early subscriber to Clir’s platform, Clir previously supported Elemental with validating OEM software upgrades by demonstrating whether expected revenue gains from turbine upgrades would offset the associated costs.
“Armed with this insight, we have been able to make informed decisions about whether or not to trial new technology and understand the expected impact of generation. Having become familiar with Clir’s ability to quickly manage large datasets and conduct complex analysis, it was a natural progression to use their expertise during the tight constraints of an M&A transaction.
“We are looking forward to seeing the extent to which Clir can support us in ensuring assets we consider acquiring are worth the investment – not just in terms of revenue gain, but considering turbine faults, technical issues, and other risks that may affect wind farm performance and financial returns.”
