asset valuation

Capturing UK gas peaker margin | 05 Feb, 2018

Small reciprocating engines are dominating delivery of new capacity in the UK power market.  3.5GW of engines have so far been successful in the UK ...

An under-estimated driver of gas storage value | 23 Oct, 2017

Gas storage value is underpinned by an ability to shift gas from lower to higher priced periods. Differences in the value of gas across time periods a ...

Flexibility investment: New UK CCGTs | 02 Oct, 2017

New CCGTs have not fared well so far in the UK capacity market. Centrica’s repowering of the Kings Lynn plant (0.4GW) has been the only successful p ...

Power price analysis: focus on what matters | 18 Sep, 2017

We apply three simple rules when we analyse power prices: Confront the reality that the price forecast is going to be wrong Define the key mar ...

Investment in flexibility: gas peakers | 04 Sep, 2017

A major transformation is underway in European power markets. Ageing coal, gas and nuclear plants are retiring and being replaced to a significant ext ...

Implied vs historical gas price volatility | 16 Nov, 2015

European gas hub markets are maturing. This can be seen via the increase in range and liquidity of traded products. Growth in trading activity is focu ...

Market benchmark for gas flexibility value | 09 Feb, 2015

After a recovery in the first half of 2014, seasonal price spreads at European hubs have again fallen back towards historically low levels (currently ...

GasTerra storage auctions & flexibility value implications | 10 Feb, 2014

Twice a year GasTerra auctions Dutch storage capacity.  The price the market is willing to pay for this capacity provides a useful insight into the v ...

Conventional power plant value analysis has evolved | 20 Jan, 2014

The value of European gas and coal fired power plants is a very different proposition to what it was 5 years ago.  Growth in renewable output has ero ...

Price spikes and the value of gas flexibility | 06 Jan, 2014

European gas hub price volatility has been in steady decline over the last 3 years.  We explored the factors behind subdued volatility in an article ...

Getting comfortable with CCGT extrinsic value | 30 Sep, 2013

CCGT power plant valuation has traditionally focused on intrinsic value, the value of dispatching the plant against prices observed in the forward mar ...

GasTerra virtual storage: a valuation case study | 04 Mar, 2013

The GasTerra TTF virtual storage auction held in mid February failed to clear above the reserve price level.  GasTerra’s capacity auctions provide ...

Don’t expect the market to pay for modelled asset value | 18 Feb, 2013

There is a real financial cost associated with the risk around an asset’s earnings. In the case of asset investments, it is conventional wisdom to a ...

Cracking gas storage and swing valuation | 21 Jan, 2013

As the European gas market matures, so does the depth and sophistication of flexibility services available. Swing and storage products form the founda ...

Developing a LNG portfolio valuation capability | 22 Oct, 2012

With global liquefaction capacity set to double over the next decade and Europe becoming increasingly import dependent, many European energy companies ...

Flexibility value: seasonal spread drivers | 12 Mar, 2012

Following on from the spread theme of last week, we examine recent developments in the seasonal gas price spread.  This is a key driver of the value ...

Portfolio value: the whole does not equal the sum of the parts | 30 Jan, 2012

Portfolio value is often highlighted and recognised as a key consideration in asset investment/divestment decisions or contract commitment business ca ...

Effective use of market benchmarks for the value of flexibility | 28 Nov, 2011

As we presented in a recent article, there are a surprising number of publicly available benchmarks for the value of flexibility in European power and ...

Transportation capacity valuation and hedging | 24 Oct, 2011

We explored in a recent article the crucial role transportation capacity and interconnectors play in European gas and power markets.  The ability to ...

The value of flexible gas supply infrastructure | 11 Jul, 2011

Global gas demand growth to be driven by power generation In their recent Golden Age of Gas report, the IEA predicts that global gas demand growth w ...