Study On The Value Evaluation Method Of Small Hydropower Enterprises In Yunnan Province

Hydropower is renewable energy, with low running costs, less impact on the environment, conducive to the security and stability operation, etc. It will help improve the overall efficiency of resource utilization, economic and social development. Large-scale hydroelectric are usually the traditional energy. Small hydroelectric are the new energy and the end of all hydropower. At present, China’s small hydropower mainly set up and manage by local, collective or individual.The installed capacity of the small hydropower is25000kW or below, and supporting local supply grid. Yunnan Province is rich in hydropower resources, accounting for15%of the country, not only conducive to the construction of large and medium hydropower project, but also conducive to the development and utilization of various small hydropower resources. In recent years, there have been a lot of Yunnan small hydropower development activities, and many small hydropower company mergers and acquisitions. How to accurately determine the value of small hydropower enterprises, it must require scientific assessment of enterprise value, and changes in price of property assets as a basis for the process of mergers and acquisitions occur. Valuation of small hydropower enterprises for business owners, managers correctly analyze the value and prospects of their own businesses or related business objectives and make capital operation of a major strategic decision with great practical significance. This paper summarizes the literature about assessing the value of domestic and foreign enterprises on the basis of different major business valuation methods compared and analyzed. Then it takes an example of the XH company valuation practice. Finally, this paper proposes the general idea of small hydropower business valuation and specific Methods. The main contents include the following aspects:(1) Analyzing the development of small hydropower in Yunnan Environmental Enterprises. It clears the main factors affecting the valuation of small hydropower enterprises in Yunnan through the profoundly analysis of business environment for the development with Yunnan’s small hydropower.(2) Selecting methods in Small hydropower enterprise valuation. On the basis of comparative analysis of the main valuation methods, it puts forward a method of small hydropower for valuation, and designs appropriate evaluation model.(3) Analysis of the typical cases. It uses the XH Company’s data, analyzes the XH Company’s data in accordance with the above assessment model, and draws the appropriate conclusions.