value management

Gaining an edge: LNG portfolio analysis | 07 Oct, 2019

Commercial evolution of the LNG market has accelerated over the last three years. This is the result of new and more flexible sources of supply.  But ...

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 ...

Decarbonising European gas: value chain impact | 03 Jun, 2019

Decarbonisation of the European gas market will involve very large scale investment across the supply chain, regardless of the pathway via which it is ...

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 ...

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 ...

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 ...

Quantifying wind & solar intermittency | 12 Nov, 2018

Averaging wind and solar output volumes reveals some structural patterns.  Wind output tends to be higher during the day time than at night and has a ...

Power plant optionality & dispatch cost hurdles | 29 Oct, 2018

The transition taking place in European power markets is reshaping supply stacks. Retiring coal, CCGT & nuclear plants are being replaced with a c ...

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 ...

Building an energy trading capability | 24 Sep, 2018

To trade or not to trade. This has been a philosophical question confronting energy company boards since the liberalization of energy markets. Trad ...

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 ...

Monetising European gas storage value | 11 Jun, 2018

Storage capacity is a feature of most European gas portfolios.  Traders and portfolio managers use storage as a key source of midstream flexibility t ...

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 ...

Plant closure: drivers of the decision to close | 16 Apr, 2018

European power markets are facing a demographic issue.  Flexible thermal generation capacity is ageing at a faster rate than it is being replaced. ...

Market access contracts: 5 success factors | 10 Apr, 2017

Owners of gas and power assets in Europe are increasingly contracting 3rd parties to provide market access services. This is a function of changing as ...

Contracting for market access via a 3rd party | 06 Mar, 2017

A major transition is taking place with European energy asset ownership structures. Thermal power and midstream gas assets have traditionally been own ...

Long term contracting to support asset financing | 24 Oct, 2016

Infrastructure investors are set to feature as prominent buyers of conventional supply assets, as utilities ramp up asset sales in Europe. European ut ...

Long term contract pricing: 5 key drivers | 23 May, 2016

Long term contracts play an important role in enabling the owners of flexible gas and power assets to monetise asset value and manage market risk. Com ...

Long term contract pricing: counterparty motivations | 11 Apr, 2016

The pricing terms of long term contracts on flexible gas & power assets are typically the subject of lengthy negotiations. They also often remain ...

A revival in contracting of flexible assets | 21 Mar, 2016

Long term contracts are a cornerstone of the energy industry. They play a key role in underpinning the capital expenditure required to develop assets. ...

Acquisitions and monetising asset value | 11 May, 2015

European energy asset transaction activity is on the rise. After ambitious but largely unsuccessful growth and acquisition sprees last decade, utiliti ...

The dangers of mixing forecasts and forward curves | 30 Mar, 2015

Forward market liquidity has steadily developed with the evolution of traded gas and power markets in Europe. This has supported traders and asset man ...

Falling fuel prices and thermal plant margins | 26 Mar, 2015

There have been some big moves in commodity prices and currencies so far in 2015.  Sharp declines in oil, gas and coal prices have reduced the fuel c ...