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In business plans related with financing of renewable energy projects, a Terminal Value is very rarely considered. Do you believe it should, and why?

In all projects I have been involved as executive shareholder, and in all scenarios considered, financing institutions always refused to consider a Terminal Value for the wind farm / solar project I was dealing with. I believe a good wind/solar site is a kind of "renewable energy mine" that will increase its value by many folds in20 years time. Some said that terminal value is offset by plants revamping/dismantling costs, that seems too conservative to me.

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Question added by Luca Salvi , Executive Vice President , Italian Energy Products LLC
Date Posted: 2013/11/06
Soliman Abd  ALmalak Gendy
by Soliman Abd ALmalak Gendy , مدير ادارة مراقبة حسابات , الجهاز المركزى للمحاسبات

I think that  most suitable use of renewable power is in a hybrid situation wherw new generation exsits

Most of Finance responsibles refuse to  take in consideration terminal value in some sources of energ because of lack of understanding.

The analysis needs to give  power weight to forward risks. .                                                                                                                                                                                                   

Mansoor Mansoor Abdhulrahuman
by Mansoor Mansoor Abdhulrahuman , Accountant , Sylvia Trading WLL

Most of Finance responsibles refuse to  take in consideration terminal value in some sources of energ because of lack of understanding.

Anwar Najmaddin Hassan حسن
by Anwar Najmaddin Hassan حسن , Financial Analyst , Alrajhi Banking & Investment Corp.

Yes, I believe it should be considered.

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