Our troveo valuation contributes to the energy transition, too

Our troveo valuation contributes to the energy transition, too

[May 2024] In addition to marketing and sourcing of used power plant equipment, reliable asset valuation is another service, highly on demand. Especially in Germany, our troveo valuation is also frequently used to determine asset lock-up costs.

Meanwhile, the troveo team boasts over 15 years of experience in the valuation of second-hand power plants aimed for re-sale. This experience is not just based on our own brokerage activities, but also on the know-how of our cooperation partners and our own structured market analyses. For example, our internal database of world-wide offers contains information on more than 5,000 current and completed sales offers for power plant units, generation units, individual turbines and high-capacity engines generators.

In recent years, our team has also evaluated in detail around 100 large-size power plants on the basis of 20 main categories of re-usable equipment. Added to this are countless individual single items as well as expensive spare part stocks. The data collected has led to the set-up of a second, proprietary database on current new prices of the most important, valuable power plant equipment. This database also contains weights and typical metal contents of such main components, which in turn can be used to determine scrap values very effectively.

The readily available knowledge of both, the new prices and the second-hand market prices for used plant components, allows a detailed, cost-effective assessment of used power plants, commonly known as the troveo evaluation.

Particularly in Germany, we make use of this method to valuate power plant units, which are in so-called grid reserve mode and which capital lock-up costs need to be ascertained in line with the Energy Law. On behalf of the transmission system operators, the troveo team has run such independent assessments in excess of 15 times, benefiting from its expertise and market know-how. The technical assessment of the assets with regard to its re-usability was provided in part by the internationally experienced power plant engineers of Tractebel Engineering GmbH.

In the meantime, the first grid reserve time slots have been exhausted. Even if such is the case, our market value valuation method can assist both parties to assess the assets and the related expenditure for overhaul or replacement purposes during the period of the grid reserve operation. In April 2024, the German regulator published its own guidance paper on the reimbursement of the remaining value of such investment benefits.

The highly standardised and thus cost-effective troveo valuation is therefore not only suitable for determining asking prices in the sales process, but also for mutual financial compensation between grid operators and operators of power plants in grid reserve mode, thus modestly contributing to the successful implementation of one measure needed on grid stability during the energy transition process.

If you want to learn more about our troveo valuation services, please send us a message to team@troveo.de. Thank you.