November 2012 – A group of six Banking Environment Initiative (BEI) banks and six energy companies argue in this paper that using traditional investment valuation models is not always the best approach for valuing clean energy investments.
The group concludes that when uncertain future market or policy conditions would have unequal impacts on investment performance, valuation models that explicitly value the fact that clean energy investments give energy companies the option to adapt to changing market or policy conditions may be more appropriate.
