Situation
A private equity investor engaged CRA’s Energy Practice to provide recurring independent market assessments and portfolio valuation support across its North American power generation portfolio. The analysis was used to support annual fund valuation processes, investment planning, portfolio management, financing activities, and strategic decision-making across thermal and renewable assets in competitive wholesale power markets.
Analysis
CRA developed long-term forecasts of energy, capacity, and ancillary service markets across PJM, NYISO, and ISO-NE, and applied detailed dispatch and revenue modeling to individual assets across 16 GW of portfolio holdings. The analysis incorporated evolving market fundamentals, including supply-demand balances, generation additions and retirements, fuel market expectations, transmission constraints, policy developments, and capacity market design changes. CRA assessed expected generation, revenues, and margins, providing both asset-level and portfolio-level financial modeling and valuation. CRA also supported transaction and strategic evaluations, including market assessments and valuation analyses for portfolio acquisitions and divestitures.
Result
CRA’s market forecasts and valuation analyses have provided the client with a consistent, independent assessment of market conditions and asset value drivers across multiple power markets. The work has supported annual portfolio valuation exercises, informed investment and portfolio management decisions, and provided the analytical foundation for evaluating strategic opportunities and transactions across the portfolio.