OFFSHORE PARK BUSINESS CASE (€ BILLION)
ENERGY COMPANY: VATTENFALL A/S
Task: Final check of a € Bill. Business Case
We were in a situation where we needed to pressure test the business case for a large offshore wind farm. We had our own models and with such a large investment wanted an external assessment.
We had Henrik K Søndergaard model the business case using a top-down method (Successive Principle), which could relatively quickly calculate the project’s key figures: Internal Rate of Return (IRR), Net Present Value (NPV) and payback time.
Above all, this method can calculate the uncertainties for the key figures and show the Top10 uncertainties in the business case even with all the details and information included in such a model.
We analyzed different configurations of the wind farm and gained a deeper understanding of the project’s uncertainties and insights into possible choices and action plans.
It was a very good supplement to our own internal models – it gave us the opportunity to evaluate our calculations.
I highly recommend using the method if you want an early assessment of the uncertainties in your business cases/projects.
Bo Svoldgaard, Vattenfall – Head of Engineering and Technology, BA Wind.
