BS EN 17463:2021+A1:2025 Valuation of Energy Related Investments (VALERI), 2026
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- European foreword
- Introduction
- 1 Scope
- 2 Normative references
- 3 Terms and definitions
- 4 Symbols, abbreviations and subscripts
- Table 1 — Symbols, abbreviations and subscripts
- 5 Valuation procedure
- Figure 1 — Valuation procedure
- 6 Setting up a model (phase A) [Go to Page]
- Table 2 — Benefits and efforts of the given example [Go to Page]
- Table 3 — Quantification of benefits and efforts [Go to Page]
- !Table 4 — Overview of all effects, their characteristics and the time allocation of cash flows [Go to Page]
- Table 5 — Calculating the discount rate (WACC)
- 7 Calculation (phase B) [Go to Page]
- Table 6 — Calculation of the NPV for the given example (most-likely-case) [Go to Page]
- Table 7 — Results — Sensitivity Analysis
- Figure 2 — Results of the sensitivity analysis [Go to Page]
- !Table 8 — Results — Example of a Scenario Analysis Settings and Results
- 8 Assessment (phase C) [Go to Page]
- 9 Reporting (phase D)
- Table 9 — Valuation report for the given example
- Annex A (informative) The NPV calculation table (basic version) with visible formulas
- Table A.1 — Net Present Value calculation table (Table 6 with visible formulas)
- Annex B (informative) Comprehensive version of the NPV calculation table
- Table B.1 — Net Present Value calculation table (comprehensive version)
- Annex C (informative) Selection of the appropriate valuation method
- C.1 Objective
- C.2 Introduction
- C.3 Differentiation between those methods that consider the time value of money and others that don’t
- Table C.1 — Terminal value calculation considering the time value of money (discount rate r > 0 %)
- Table C.2 — Terminal value calculation not considering the time value of money (discount rate r = 0 %)
- Table C.3 — Comparison of three different investment options in regard to their NPV, DPB and IRR (r = 5 %); framed cells indicate best values
- C.4 Limitations of the Internal Rate of Return method (IRR)
- Table C.4 — Comparison of different energy efficiency options utilizing the NPV and the IRR
- Table C.5 — Calculation of an IRR with two sign changes
- Table C.6 — Iteration results of the IRR for the given example
- C.5 Limitations of the Discounted Payback Period method (DPB or DPP)
- Table C.7 — Comparison of different energy efficiency options utilizing the NPV and the DPB
- Table C.8 — NPV/DPB-model with 10 periods (r = 5 %)
- Table C.9 — NPV/DPB-model with 5 periods (r = 5 %)
- Table C.10 — NPV/DPB-model with 10 periods plus one period for dismantling (r = 5 %)
- C.6 Summary
- Annex D (informative) Case study: Application of the valuation procedure to the integration of a cogeneration unit within an industrial organization
- D.1 General
- Figure D.1 — Flow chart of the integrated CHP system — part 1
- D.2 Determination and qualitative description of all direct and indirect effects
- Table D.1 — Benefits and efforts
- D.3 Quantification of the benefits and efforts
- Table D.2 — Model data
- Figure D.2 — Flow chart of the integrated CHP system — part 2
- Table D.3 — Benefits and efforts
- D.4 Monetisation, determination of the relevant points in time, consideration of price variations and of degradation
- !Table D.4 — Overview of all effects, their characteristics and the time allocation of cash flows
- D.5 Number of periods to be considered
- D.6 Determination of the appropriate discount rate
- D.7 Consideration of risk
- D.8 Determination of the value added by the ERI (most-likely-case scenario)
- Table D.5 — NPV of CHP system
- D.9 Performing sensitivity analysis under variation of all parameters containing considerable uncertainty
- Figure D.3 — Sensitivity analysis for the CHP project
- Table D.6 — Sensitivity Analysis
- D.10 Performing scenario analysis (best-case and worst-case scenario)
- Table D.7 — Scenario Analysis
- D.11 Interpretation of the results
- D.12 Transparent and comprehensible presentation of the calculation and the results with consideration of not quantified and not monetised effects
- Table D.8 — Valuation report for the given example in Annex D
- Annex E (informative) Checklist for the Valuation Report
- Table E.1 — Checklist for the Valuation report
- Annex F (informative) Consideration of risk
- Figure F.1 — Consideration of risk
- Table F.1 — Calculation of the “risk deduction factor”
- Table F.2 — Application of the risk deduction factor
- Annex G (informative) Consideration of price variation
- Bibliography [Go to Page]