Power & Renewable Power

Navigating the Mega Scale Electrification and Renewable Growth

The demand for electricity is projected to grow more than anytime in history due to growth of the traditional and the new forces. The economic growth across the globe and the need for reliable and cheap electricity as a backbone of that growth are putting demand pressure in every region of the world. Additionally, the emergence of new demand sources such as: Electric Vehicles, and Data Centers are putting incremental pressure on the electricity grid. The exponential demand growth is taking place while many regions in the world are prioritizing and incentivizing the growth of renewable and interruptible sources of electricity such as wind and solar.

Monetizing Renewable and Flexible Generation Portfolio

The key to winning in the new world of rapid electrification is the ability to optimize and monetize the portfolios of renewable, thermal flex generation, and storage assets. This will require deep expertise in each market, across term and wholesale spot, and cross commodity exposures. Also, Power assets provide a significant degree of extrinsic value by giving the asset operator a high degree of optionality. The combined portfolio effect of the renewables, thermal, and storage asset will further enhance the value to the owner if operated as a complex portfolio of interconnected assets.

Developing Commercial Capabilities for Complex Asset Portfolios

The traditional single asset and “base load generation” approach to commercial optimization is no longer fit-for-purpose for the complex and dynamic world of power trading and optimization. Companies will need a model-based and dynamic simulation approach. They need to create a “commercial digital twin” that can quantify the price risk of the portfolio at any given time under market and operational uncertainty. Acquiring sophisticated models by itself does not lead to commercial excellence. There needs to be management of change. This means the: re-alignment of commercial and risk management activities starting from review of risk governance, high grading risk management capabilities, incorporating advanced commercial analytics and front office capabilities and skill set across the board.

a person sitting at a desk using a laptop

Your Guide Through Developing Capabilities

Our deep expertise spans the entire commercial value chain and cross markets, enabling you to:

Develop an asset focused and strategic power and renewable trading and risk management capability
Deploy advanced power portfolio risk management software and models
Execute sophisticated trading strategies
Value illiquid assets and contracts
Structure complex deals with embedded optionality
Evaluate commercial commitments with confidence