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Due diligence

Aim of due diligence is to identify gaps in project documentation and problematic areas, which will allow the investor to have a real and general view of the project. Those gaps or problematic areas could constitute potential deal breakers, but they are also an important advantage during SPV (Special Purpose Vehicle) purchase negotiations.

During due diligence of prospective projects, on behalf of the investor, we verify all the permits and consents granted to the project, we check the correctness of the financial and technical assumptions and solutions. Moreover, we calculate the profitability and return on investment basing on wind reports prepared by independent and dedicated experts. We also predict the payback period.

Tundra Advisory carries out both technical and financial due diligence relying on specialists (in relation to turbine layout and productivity, geological studies, electric solutions) accepted by the buyer.

  • Technical due diligence
    Consists of actions leading to final report regarding technical assumption and solutions introduced to a given wind project., including:
    • Review and verification of:
      • Initial layout of wind turbines
      • Environmental conditions and designs
      • Access Road designs
      • Interconnection agreements
      • Geological studies
    • Evaluation (with assistance of specialized entities) of:
      • Wind farm productivity
      • Wind assessment
      • Applied wind turbine technology and its optimization
  • Financial due diligence

After a verification of technical conditions and assumptions of the project there is a time to verify the assumptions in project budget and financial model. First of all Tundra Advisory checks the correctness and adequacy of the calculations and formulas applied in order to suggest better solutions and changes in financial model regarding sensitivity analysis of project and operating costs as well as possible delays. The sensitivity analysis serves as a basis not only to define the level of liquidated damages and other contractual issues but also to assess the impact of changes in productivity of the wind farm.

Financial due diligence consists of:

  • Verification of assumption and correctness of the calculations in business plan in regard to project costs
  • Evaluation of energy market assumptions (energy and green certificate prices)
  • Preparation or verification of the financial model
  • Sensitivity analysis and risk assessment
  • Final opinion summarizing the correctness of previous analyses and profitability of the project

Our experience in wind energy market and knowledge of its specifics allow us to perform a complete and thorough due diligence in financial, technical and legal aspects.

We are cooperating with trusted partners, specialized in each aspect of due diligence.

It is worth mentioning that we do not have permanent cooperation agreements with given advisors. Case by case we choose our partners on quality/price ratio and client preferences.