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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.
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. .
Most of Finance responsibles refuse to take in consideration terminal value in some sources of energ because of lack of understanding.
Yes, I believe it should be considered.