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Capturing value in the renewable markets 

PA Consulting Group was retained by an oil and natural gas corporation looking to diversify its core business through the development of renewable power generating assets. PA is advising the client on Western US power market fundamentals and associated investment risks. The team used its fundamental, environmental, transmission, and renewable modelling capabilities to forecast wholesale power market prices, renewable compensation, and transmission upgrades throughout the West. In addition, we have conducted transmission analyses in support of identifying the optimal route which a given wind power generation development project could deliver renewable power to load centres with an appetite for renewable generation and access to transmission rights. 

PA was engaged by a major Southeastern U.S. utility looking to expand its current footprint through strategic acquisitions and/or development projects. The team worked as the strategic advisor to provide an overview of all renewable energy legislation, including possible federal legislation and current state Renewable Energy Standards. For target markets, PA provided a forecast of future renewable energy credits and an outlook on potential counter parties for a power purchase agreement.

A private equity firm retained PA to value a portfolio of landfill gas generating assets in the state of New York. Our valuation of the portfolio was conducted in support of a potential acquisition and included analysis related to energy, capacity, and renewable energy credit (REC) markets. PA also conducted an analysis of the contracts in the landfill gas portfolio, which included landfill gas procurement, REC contracts, and forward capacity contracts. In addition to providing a forecast of plant cash flows, the team submitted a market expert report to the client outlining the Northeast power markets and the portfolio’s ability to sell into both the New York and New England markets. The explanation of risk factors and projected cash flows for the portfolio allowed the client to determine a suitable price under which they would complete the transaction.

An investment bank engaged with PA to provide market and financial analysis in the effort to finance a biomass plant in PJM. As a part of PA's energy market services, the team valued the biomass plant based using both fundamental and Locational Marginal Price (LMP)-based models. In addition, the team evaluated the effectiveness of potential hedging structures, and forecasted their effect on the plant’s cash flows using a model that accounts for market volatility. To support the client's market understanding, the  team provided an overview of the PJM market, including the development of LMP and Reliability Pricing Markets (RPM), plant-specific operating projections, and an evaluation of several proposed hedges.

PA was retained by an investment bank and municipality to be the market and strategic advisor for the first major hybrid solar-combined cycle project in the U.S. The team used its proprietary market models, including renewable energy credit and stochastic dispatch optimisation models to project the gross margins and operations of the facility. PA also delivered an independent market expert report.

To learn more about our renewable modelling capabilities, contact us now.

Contact the energy and utilities team

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