ESG Investment
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Group -3
Aveek
Debasish
Himanshu
Sankalp
Saurabh
Why Photovoltaic Sector is very appealing!!
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
As per Paris Agreement both developed and developing countries had to limit the global average
temperature rise by 1.5 degree C by reducing greenhouse gas emissions.

Since fossil fuels still the largest source of energy and accounted for 68% of greenhouse
emissions, Photovoltaic is, therefore, a critical technology to exploit for energy transition from
fossil energy to clean energy.

The major reasons why the photovoltaic sector is so appealing are:
 Photovoltaic cells are available all over the world, hence it is highly difficult to monopolize the
market.
 Prices are decreasing and showing more stability than fossil fuels.
 The growth rate of sustainable energy started rising in Europe with Spain, Germany and the
Netherlands the top three in term of increased investments, followed by Poland, Italy, Hungary and
Belgium.
 Innovations in photovoltaic sectors such as, Solar Roadways are also being widely accepted in
various countries, such as Netherland, China and projects are being implemented in real time to
promote the transformation towards sustainable/clean energy.
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Enterprise values
Enterprise value = 57,796,389 EURO
NFP = 35800 EURO
Capital investment = 26 Million Euro
Capital with Interest (@1.9% Compounded Annually) = 28.566 Million Euro
Amount paid after 5 year = 28.566 Million Euro
Transaction Cost = 500 thousand Euro
Total Cash out flow in Initial Year = 36,300 Euro
Desired IRR for ACEA
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The IRR and the NPV for the investment are as follows
NPV
IRR
21.496 M
5%