Holiday Park: NPV increase £5m

Summary

We recommended a new Energy Architecture for a private equity-owned holiday park to reduce costs and enhance its exit valuation. We identified £5m of NPV enhancements via on-site renewable generation and improved energy efficiency. 

Background

A private equity firm owned a UK holiday park and felt that there was value to be gained from on-site renewable generation and improved energy efficiency. However, they realised that they would need specialist help to understand how the technical, commercial and investment aspects interlinked. 

Solution

We are now entering the implementation phase. This will involve building a 2.1MW ground-mounted solar farm on site, expanding roof-top solar and wind generation capability, and upgrading the energy control systems and software. 

Outcome

Our proposed changes will enhance EBITDA by an estimated £1m per year by 2027, and enhance net present value for the private equity investor by £4.8m.