P50 & P90 simplified: Two figures, all investors should understand, to build a reliable business plan when investing in wind assets
Co-authors : Perrine Bugeat & Ypatios Moysiadis – This article was written by its authors on behalf of Greensolver and was first published in the company’s blog
When you invest in wind energy assets, whether they are new or you acquire them on the secondary market you should be aware of two key figures which are critical for your forecasting and business plan assumptions; these are P50 and P90.
One of the critical risks when investing in the wind energy sector is the inconsistency of the wind resource compared to the forecast. No one can predict the wind right. Energy yield assessment studies are performed by wind experts to provide the Net Yield and exceedance probability figures, to mitigate that risk
This article aims to simplify the terms and explain in plain English the difference between all the jargon, helping you to select the most appropriate figure when creating your revenue forecast and business model.