This SAVi assessment of an onshore wind portfolio was commissioned by B Capital Partners, a Swiss-based investment house focusing exclusively on investing in sustainable infrastructure. The portfolio is located in Germany and has a total capacity of 29 MW. IISD customized and applied the SAVi methodology to conduct a comparative assessment of the onshore wind portfolio and a hypothetical gas-fired power plant with the same power generation capacity.
The objective of the assessment was to integrate a range of environmental, social, and economic costs and benefits into an asset valuation to improve the transparency of the onshore wind portfolio’s impacts on the environment and important stakeholders. In addition, the assessment served to reveal the asset’s financial resilience toward climate change risks and how its performance compares to an alternative gas-fired power plant.
The SAVi assessment valued the environmental, social, and economic costs and benefits (externalities) in financial terms and calculated the potential costs induced by climate change risks for both assets. Quantified externalities and risks were incorporated into the following three components of the SAVi assessment:
- Cost-benefit analysis (CBA)
- Levelized cost of electricity (LCOE) calculation
- Financial analysis, generating performance results for the equity and project internal rate of return (IRR).
The analysis found that B Capital’s onshore wind portfolio in Germany yields greater profitability and more benefits to society than a comparable gas-fired power plant.