asset investment

European gas storage value is recovering | 30 Sep, 2019

Three structural drivers are tightening the gas flexibility balance across Europe: Rising import dependency: resulting in a reliance on longer &a ...

German & Dutch CCGT value case | 23 Sep, 2019

Between 2005-10 there was a mini boom in CCGT investment in Germany and the Netherlands. These projects reached FID against a backdrop of relatively h ...

Major shifts in German power pricing dynamics | 09 Sep, 2019

Renewable output is growing fast across North West European power markets. Wind & solar output in Germany accounts for more than 30% of demand. In ...

Building a viable battery margin stack | 02 Sep, 2019

We flagged a ‘take off’ in European merchant battery investment as one of our 5 surprises to watch out for in 2019. Investment momentum has been a ...

Asian LNG demand stalls in H1 2019 | 26 Aug, 2019

For several years we have framed the evolution of the LNG market supply & demand balance around one key driver: Asian demand growth. The ability o ...

The relevance of a near zero UK capacity price | 17 Jun, 2019

The latest T-1 UK capacity auction cleared at 0.77 £/kW on Wed last week. That is 87% lower than the last T-1 clearing price (at 6 £/MWh).  77 penc ...

Decarbonising European gas: 3 pathways | 27 May, 2019

The origins of the European gas market go back to the discovery of large reserves of natural gas, firstly the giant onshore Dutch Groningen field (195 ...

Headwinds for UK gas engine margins | 29 Apr, 2019

When the UK capacity market was introduced in 2014, large grid connected CCGTs were anticipated to be the primary provider of new capacity.  Step for ...

Challenging three battery investment ‘myths’ | 15 Apr, 2019

‘Battery storage flexibility is a key building block of a decarbonised power sector.’ This statement is not a myth.  In fact it is almost a tr ...

A new wave of LNG supply is building | 18 Mar, 2019

European and Asian spot gas prices have halved across the last six months. European hub prices are currently testing the 5.0 $/mmbtu level, down from ...

Power price uncertainty: a UK case study | 25 Feb, 2019

Baseload power prices are becoming irrelevant.  This is down to the simple fact that a diminishing number of power assets run to a baseload profile. ...

Confronting power market uncertainty | 11 Feb, 2019

Everyone is familiar with the Base, High & Low scenario approach to power market analysis.  This is rooted in common sense. What is our best gues ...

Variable cost a key differentiator for storage | 28 Jan, 2019

Like cars, gas storage assets come in a range of sizes and speeds.  Any conversation comparing the relative merits of different storage assets tends ...

5 energy market surprises for 2019 | 07 Jan, 2019

Welcome back to our first feature article for 2019.  As has become tradition we start the year with five surprises to watch for on your radar screens ...

Boosting midstream asset value capture | 03 Dec, 2018

This decade has been a tough one for owners of flexible midstream gas assets such as storage, pipelines & regas terminals. Asset returns have been ...

UK battery investment 3: building an investment case | 15 Oct, 2018

The current interest in UK merchant battery investment is supported by some powerful fundamental drivers. The most important of these is a strong case ...

Battery investment 2: Monetising battery value | 01 Oct, 2018

2019 may be the breakthrough year for merchant battery investment in the UK.  Battery developers have re-focused investment cases on wholesale market ...

UK battery investment 1: business model transition | 03 Sep, 2018

Battery storage broke through the investment viability barrier in the UK’s 2016 capacity auctions. 200MW of batteries were successful in the 2016 ...

A new UK CCGT despite no price signal | 04 Jun, 2018

The 8 £/kW clearing price in this year’s capacity auction presented a serious roadblock for new CCGT projects. But Scottish utility SSE has mounted ...

Plant closure: Valuing closure option vs alternatives | 23 Apr, 2018

Plant closure decisions are usually driven by expected profit.  But a simple assessment of plant profitability is usually an inadequate approach to i ...

NW Europe’s flexible capacity crunch | 19 Mar, 2018

The luxury of oversupply There has been a structural oversupply of capacity in North West European power markets this decade (with the notable exce ...

UK capacity auctions set up stack transition | 15 Jan, 2018

The UK power market is preparing for two capacity auctions in Q1 2018.  There is no shortage of competition to provide capacity.  The outcome of the ...

Funds taking on market risk to boost returns | 27 Nov, 2017

Investment funds have made a big push into European energy infrastructure this decade. This has been fuelled by a search for yield in a record low int ...

Taking nuclear life extensions seriously | 20 Nov, 2017

France has reignited the debate around nuclear power plant closures in Europe this month. The French government has just reneged on its promise to red ...

Cracking the new US export business model | 06 Nov, 2017

48 mtpa of 2nd wave US export projects are queued to go.  They have sites, FERC approval and in many cases good access to infrastructure and skilled ...