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
EPR: progress at Olkiluoto but Flamanville sees new delays and cost increases
Yesterday EDF announced a further delay to the schedule for its troubled flagship European Pressurised Water Reactor (“EPR”) at [...]
After the energy market chaos in 2021…expect more of the same in 2022
A year ago I wrote a post about all the words we used in 2020, and it’s interesting how [...]
LNG diversions see gas prices ease, but the ships can still re-divert
I didn’t really go out on a limb in my last post when I predicted that energy markets would [...]
Nuclear update: EDF brings forward AGR closures, while progress at Hinkley Point C is under threat
EDF announced this week that it is bringing forward the closure dates of two of its nuclear power stations [...]
Will Ofgem’s plans for prudential regulation in energy pay off?
In recent months there have been increasing calls for the introduction of prudential regulation in the energy markets, in [...]