Business case
Our client, a leading Chinese state-owned enterprise, was considering a direct investment in a 500 MW solar PV power plant in Kyrgyzstan, one of the first large-scale renewable energy projects in the country.
Our work provided the client with a robust decision-making framework, highlighting key financial and contractual risks and enabling an informed evaluation of one of its first strategic moves into the renewable energy sector.
We developed a tailored financial model to assess the project’s feasibility, incorporating simulations on key risk factors such as debt interest rates, power output variability, tariff structures and foreign exchange exposure. Our analysis included scenario testing, sensitivity analysis and a review of the draft power purchase agreement (PPA). This allowed us to identify critical contractual risks, including unhedged FX liabilities, that could materially affect returns.