The energy market transition is presenting challenges to the economics of many traditional energy assets. Regulation, and the increasing deployment of zero-marginal cost renewable generation is leading to lower utilisation rates for conventional generation. However the energy transition is opening up opportunities for other traditional energy assets such as interconnectors, which are increasingly seen as part of the solution to balancing the future electricity networks.
Where electricity markets are becoming more local, gas markets are increasingly globalising with the growth in LNG, and the entry of new producers into the market due to the development of shale gas.
I help owners of conventional energy assets to optimise their portfolios, carry out due diligence for the sale or acquisition of new assets, and adapt their business models in the face of changing markets.
Areas of focus
Route-to-Market & Tolling Agreements
Structuring route-to-market and tolling contracts from execution-only to full service offtake and optimisation agreements
- Assisting clients in determining the appropriate approach for their circumstances
- Advising on commercial arrangements including ongoing contract management
- Helping clients balance the need to reflect physical asset characteristics while minimising operational complexity
Risk Management
& Hedging
Supporting clients in developing oil, gas and electricity risk management and hedging strategies
- Identifying and evaluating risk and risk appetite
- Assisting in the negotiation of trading agreements
- Establishing internal hedging governance frameworks, including securing board approval
Acquisitions
& Disposals
Analysing asset portfolios including available revenue streams and cost profiles
- Analysis of any associated hedging portfolio and advising on any hedge novations or re-structuring
- Post acquisition management and monitoring including developing asset optimisation strategies
Managing Global
Portfolios
Helping clients to navigate regulatory and geopolitical risks associated with global energy portfolios
- Analysis of the potential impact of Brexit on a client’s operations
- Understanding EU-level developments on energy security and the implications for oil and gas trading
Conventional Energy Assets Insights
The Maths of Net Zero: ensuring a smooth & fair transition
Yesterday I had the pleasure of addressing the All Party Parliamentary Group for Energy Studies (and was delighted to [...]
The G7 makes little progress towards coal phase-out
Shortly after I published my post on the use of coal on the GB electricity system in Winter 2020, [...]
What have we learned since the launch of the UK ETS?
Last month saw the launch of the UK Emissions Trading System (“UK ETS”), which replaces the EU equivalent which [...]
Falling nuclear capacity adds to winter worries
Low nuclear availability added to the capacity issues in the GB market over the past winter, and as the [...]
Despite its impending exit coal power was still important last winter
Over the last couple of years, Britain’s ongoing reliance on coal has been the subject of a few of [...]