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Q3 2024 quarterly valuation update for the energy and infrastructure sector: valuing projects towards the end of their lives
22 October 2024
Explore the latest valuation trends in the energy and infrastructure sector, with a spotlight on valuing projects towards the end of their lives. Our Q3 2024 update provides a snapshot of some of the main publicly available valuation trends across the energy and infrastructure sector, covering both debt and equity metrics.
Three key themes from Q3 2024:
Stable cost of debt this quarter: Gilt yields have been relatively stable over the past 6-9 months. This enables stabilisation of valuation expectations which facilitates improved transaction flow.
Increasing transactional activity across the renewable energy sector: Market activity has been strong, helped in part by lower levels of volatility around the cost of capital. Publicly reported discount rates from listed funds (both general infrastructure funds and more focused renewable energy funds) have been largely flat for the past 6-9 months, following a period of discount rate increases.
Valuing projects towards the end of their lives: Project end of life dynamics mean that traditional valuation approaches are not always appropriate. Due consideration should be given to the specific of the risk in question and an appropriate discount rate to be selected on that basis.
Download our quarterly valuation update for Q3 2024:
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