Contemporary Valuation Guidelines Affecting Renewable Assets and Damages

Co-Sponsored by the National Association of Certified Valuators and Analysts®  (NACVA®) 

	Program Description		Who Should Attend
	How You Will Benefit		Schedule

Program Description
This course is segmented into two parts. The first part is a primer for the appraiser or analyst who wishes to understand the components of an appraisal of renewable interest or "rights". It provides a foundation for the novice who wishes to better understand renewable assets and the development and origination of the components comprising a valuation.

As a basis for renewable valuations, comparative analysis can be constructed based on analogous mineral valuations where both renewable and mineral valuations have revenue profiles based on variable production, pricing, and royalty schemes with applicable discount rates to arrive at a net present value determination. The fundamental standards will be presented in the context of an appraisal of wind rights and what should be included in the valuation workup. Requiring basic application of valuation principles, segments will include definitions of appraisal, what are the requirements to be a renewable appraiser, and to certify the valuation document. Guidelines will cover what knowledge is necessary to value an interest or rights of a landowner where a developer has erected wind turbines. The interest in such a renewable generation asset is identified in a wind lease, generated by the developer, detailing the land area, number of turbines, and royalty over the lifetime of the project.

The potential for diminution of land estate values, damage assessments, and complex end of life considerations, such as repowering analysis, require more specific analysis and build up methods to establish defensible valuations. Therefore, these considerations will be presented in the second half of the course to compare and contrast with the primer guidelines, which are straightforward for an established wind farm. There, the revenue streams are established and the credibility of the energy buyer (off taker) are known; providing the basis for a more credible discount rate.

How You Will Benefit
After completing this course, attendees will be able to:

• Identify and describe the difference between utility scale wind and renewable from behind the meter technologies
• Create the components of a royalty owner's wind rights appraisal
• Differentiate the potential impact of President Biden's renewable mandate with President Trump's
• Recognize and learn how to incorporate a risk factor for potential changes to the production tax credit and the associated economic feasibility
• Identify and delineate the value of potential damages to land adjacent to wind turbine placement
• Provide a foundation for incorporating land lease provisions for developers desiring surface rights of ownership

Take Aways
Attendees will take away practical tips on how to efficiently determine reasonable compensation amounts for business valuations, tax planning, tax compliance, and shareholder disputes. Rather than focusing on theory, this course delves into details to help practitioners avoid bad assumptions and common oversights. Attendees will also leave with pointers on how other practitioners could have better protected themselves from court scrutiny. 

Who Should Attend

Delivery Method Group Internet-Based Program Level Intermediate Advanced Preparation None Prerequisites Previous training or research on subject matter being taught. Such persons are often at a mid-level within the organization, with operational and/or supervisory responsibilities.   Economics 2 Total CPE Hours   2

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