DNPV Method Boosts Solar Energy Investments, Unlocks Undervalued Projects
The DNPV methodology was used to evaluate a solar energy project in Colombia, showing that traditional methods undervalue renewable energy projects due to high-risk premiums. The DNPV approach separates project risk from the time value of money, resulting in a valuation 2.3 times higher than NPV. This highlights the importance of considering risk factors accurately in assessing the financial feasibility of renewable energy investments.