Power plants (thermal, solar, gas turbine)
Power Sector Valuation
Fixed-asset valuation of three power stations for MAHAGENCO
Chandrapur, Dhule and Uran, Maharashtra
Power Sector Valuation
Valuation, TEV studies and lender monitoring for solar, thermal, gas-based and wind power plants.
Overview
Valuing power-generation assets
A power plant's value rests on technical and commercial facts together: installed capacity, technology, age and condition, generation history and plant load factor, the fuel or resource it depends on, and the power purchase agreement's tariff and remaining term.
Lenders typically need three things across a project's life: a Techno-Economic Viability study before sanction, Lender's Independent Engineer monitoring while it is built, and periodic valuation once it is operating. Owners need valuations for transactions, restructuring, insurance and the fixed-asset registers in their accounts.
Our teams combine registered valuers for plant & machinery, engineers and chartered accountants, so the technical assessment and the financial analysis are done together.
What we cover
Solar, thermal and wind
Each technology is valued on its own drivers — and many assignments cover more than one.
Solar power
Ground-mounted, rooftop and distributed agri-solar plants.
- TEV studies before sanction
- Lender's Independent Engineer during construction
- Modules, inverters, structures and evacuation
- Generation history and module degradation
Thermal & gas-based
Coal-fired thermal power stations and gas-turbine plants.
- Land, buildings and plant & machinery
- Boilers, turbines, generators and auxiliaries
- Coal and ash handling, cooling water and switchyards
- Fixed-asset revaluation for financial reporting
Wind power
Wind farms and individual wind turbine generators.
- Wind turbine generators, towers and blades
- Transmission and evacuation infrastructure
- Condition and remaining-life assessment
- Valuation for lending, sale and insurance
Gallery
Power plants we have valued
A selection of the thermal power stations and solar plants we have valued — there are many others.
ThermalEssar Gujarat PowerJamnagar, Gujarat 
ThermalVidarbha Industries Power 
ThermalCoastal Energen - Thermal
MAHAGENCOChandrapur, Maharashtra 
SolarAVAADA 
SolarAditya Birla Solar 
SolarE-UrjaGhatsila, Jharkhand 
SolarAcme Solar
Purposes
When you need us
TEV for new projects
Technical and financial viability of a proposed power plant for the lender's appraisal.
TEV for new projects
- Technology, capacity and site assessment
- Project cost, means of finance and tariff review
- Projected generation, cash flows and debt service coverage
- Report for the lender's appraisal
Construction monitoring
Lender's Independent Engineer checks on cost, progress and fund utilisation until commissioning.
Construction monitoring
- Progress against the project schedule
- Cost incurred against the approved budget
- Fund utilisation checks before disbursements
- Periodic reports to the lender until commissioning
Bank finance & refinancing
Valuation of operating plants as security for loans and refinancing.
Bank finance & refinancing
- Plant & machinery, land and evacuation assets
- Condition, age and remaining useful life
- Generation history and plant load factor
- Report in the lender's format
Transactions & restructuring
Valuation of power assets for acquisition, sale or restructuring.
Transactions & restructuring
- Cash flows over the remaining PPA term
- Tariff, generation history and remaining plant life
- Cost and market approaches as cross-checks
- Technical review alongside the financial analysis
Financial reporting
Fixed-asset valuation and revaluation of generating stations for the accounts.
Financial reporting
- Values matched to the fixed asset register
- Remaining useful life of generating equipment
- Fair value for revaluation under Ind AS
- Report for the auditors
Insolvency & insurance
Fair value and liquidation value under IBC, and replacement values for insurance.
Insolvency & insurance
- Fair value and liquidation value by asset class
- Registered valuers appointed by the resolution professional
- Replacement value of plant for the sum insured
- Site inspection and physical verification
Scope
Plants and assets
- Solar PV plants — ground-mounted, rooftop and agri-solar
- Coal-fired thermal power stations
- Gas-turbine power stations
- Wind farms and wind turbine generators
- Transmission lines, substations and switchyards
- Project land and lease rights
- Other renewable-energy plants (bio-CNG)
Checklist
Documents generally required
- Power purchase agreement and tariff order
- EPC contract and project cost break-up
- Equipment data sheets, OEM warranties and O&M contracts
- Commissioning certificates and generation / plant load factor data
- Fuel supply agreement (thermal and gas-based plants)
- Land title or lease documents, fixed asset register and financial statements
Methodology
Valuation approaches
- 01
Cost approach
Current cost of an equivalent plant, less physical deterioration, degradation and obsolescence.
Cost approach
- Current cost of equivalent capacity and technology
- Physical deterioration from inspection and operating data
- Module degradation for solar plants
- Obsolescence where newer units are cheaper to run
- 02
Income approach
Present value of cash flows over the remaining PPA term and plant life, using actual generation data.
Income approach
- Tariff and remaining term of the PPA
- Projected generation from actual history
- Operating costs, degradation and remaining plant life
- Cash flows discounted to present value
- 03
Market approach
Prices paid for comparable operating plants, where transactions are available.
Market approach
- Prices paid for comparable operating plants
- Adjusted for capacity, technology, age and tariff
- Used where transactions are available
- Cross-checked against the cost and income approaches
Our process
How an assignment runs
Step 01
Scope
We agree whether you need a TEV study, monitoring or a valuation, and its purpose.
Step 02
Documents
We review the PPA, EPC contract, equipment data, generation records and land documents.
Step 03
Site inspection
Engineers inspect the plant, its equipment, evacuation arrangements and land.
Step 04
Analysis
Technical review of capacity, condition and performance, and financial analysis of cost and cash flows.
Step 05
Report
A TEV report, monitoring report or valuation report in the lender's or auditor's format.
Who does the work
Our team for this service
Registered valuers for plant & machinery and engineers who work on power projects.
Sharadkumar B. Chalikwar
Chairman & Managing Director
IBBI — Land & BuildingIncome Tax — Land & Building, Plant & MachineryIOV — Land & BuildingIIV — Plant & MachineryPVAI — Land & BuildingChartered Engineer (India) — The Institution of Engineers (India)Fellow — The Institution of Engineers (India)
Manoj B. Chalikwar
Joint Managing Director
IBBI — Land & Building, Plant & MachineryIncome Tax — Land & Building, Plant & MachineryIIV — Land & Building, Plant & MachineryPVAI — Land & BuildingIIV-RVF — Plant & MachineryChartered Engineer (India) — The Institution of Engineers (India)Licensed Structural Engineer — Maharashtra (UDCPR) — Directorate of Town Planning, Government of MaharashtraMember — The Institution of Engineers (India)
Umang A. Patel
Director
IBBI — Land & Building, Plant & MachineryIncome Tax — Land & Building, Plant & MachineryIIV — Land & Building, Plant & MachineryIIV-RVF — Land & Building, Plant & MachineryChartered Engineer (India) — The Institution of Engineers (India)Associate Member — The Institution of Engineers (India)
Avinash Pandey
Regional Head, Thane
IBBI — Plant & MachineryIncome Tax — Plant & MachineryIIV-RVF — Plant & MachineryChartered Engineer (India) — The Institution of Engineers (India)Member — The Institution of Engineers (India)
FAQ
Frequently asked questions
Can't find the answer? Ask us directly — we're happy to explain how an assignment would work.
All questionsCan you value a power plant that is still under construction?
Yes — we value the work completed, and as Lender's Independent Engineer we monitor cost and progress until commissioning.
How are the age and condition of a thermal plant reflected in its value?
Through physical deterioration and remaining life, judged from inspection, maintenance history and operating data such as plant load factor — and through any obsolescence, for example where newer, more efficient units would be cheaper to run.
How is solar module degradation taken into account?
We use the manufacturer's degradation profile and the plant's actual generation history to estimate future output and the remaining useful life.
What do you need to value a wind farm?
Generation and availability history for each turbine, the OEM and O&M contracts, the power purchase agreement, and the land or lease documents for the turbine sites.
Case studies
Assignments of this kind
How power sector valuation assignments have run in practice — from our assignment records, anonymised where the client has not agreed to be named.
All case studies
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