BGE Acquisition of SWS Energy
Bord Gáis Eireann
RPS were retained by BGE to conduct Environmental, Planning and Structural / Geotechnical Due Diligence of SWS Energy’s 500 MW wind energy portfolio across Ireland and Northern Ireland.
Only 25% of the portfolio included wind farm developments that were constructed or in the construction stage, with the remaining majority still at varying stages of the planning process. Given the greater energy potential in upland areas, a high proportion of the development projects were located in sensitive upland regions where protected habitats / species, the presence of active peatlands and visual landscape designations made development and planning permission uncertain and challenging.
In addition there were often complex grid connections that would have to be overcome to get the developments connected to the energy grid. Environmental Liability Directive risks to protected habitats and species and compensatory habitat planning conditions were critical components in evaluating the risk and value of the energy assets during the due diligence project. RPS developed a specific risk & valuation methodology that assessed each development project in terms of: the severity and magnitude of impact , which in this case was the predicted reduction in MW capacity as a result of planning scale reduction, delays or failure the probability of such an impact occurring.
This approach enabled the client and financial advisors to value the inherent risk and uncertainties of each of the 20 development projects still in the environmental and planning assessment stage so that an appropriate valuation could be assigned to the business.