LCP have provided modelling and analysis to support clients in evaluating a range of generation assets in Ireland under the new I-SEM market arrangements.
The energy industry is a complex and evolving environment facing continuous challenges and creating new opportunities.
The UK energy market is undergoing significant change. A commitment to decarbonising the market in an affordable way, while maintaining security of supply has led to fundamental shifts in how participants behave, through wholesale, capacity, balancing, ancillary and low carbon support markets. Changes in policy, regulation, technological capability and market sentiment have introduced challenges and opportunities that haven't been observed before.
How we can help
Making strategic decisions in this market has never been more complex, from short term asset optimisation to long term investment and policy decisions. We combine in-depth knowledge of the energy sector with modelling expertise developed over many years of close engagement with government and industry to help our clients make informed decisions in this dynamic environment, and provide them with an independent and unbiased point of view.
Our analysis is supported by our in-house modelling framework, which is used by both industry and policymakers. It is the primary power market forecasting tool used by BEIS to assess the impact of changes to energy policy. It is also used by National Grid to model system security and produce their annual recommendations for the capacity auction requirements, by Ofgem to assess changes to charging arrangements, and by the LCCC to set the costs to suppliers of the Contracts for Difference scheme.
We work with clients across the UK and Ireland helping them with market forecasting, revenue stacking, asset valuation, dispatch optimisation, auction bidding strategies and policy impact analysis. Our clients include generators, suppliers, investors, strategists, traders and policy analysts.
How we have helped our clients
We provided Ofgem with modelling support as part of their Targeted Charging Review (TCR) into residual network charging arrangements.
In 2018 National Grid commissioned LCP to develop an approach to calculating the incremental EFCs (equivalent firm capacities) for wind and solar plants, with a view towards setting deratings for their participation in future capacity auctions.
LCP has worked with a number of investors and generation owners in GB and Ireland to evaluate specific wind assets.
Our latest thinking
Aaron Punwani, LCP’s Strategy Director, reflects on 20 years of innovation at LCP.19 May 2017
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Explore our solutions
We can help our clients with a wide range of issues from whole system modelling to individual power plant and policy impact analysis.Discover more
Strategic advice aimed at maximising the benefits and minimising the risks associated with the Capacity Market and Contracts for Difference.Discover more
We provide detailed forecasts of the GB and Irish power markets, using our EnVision modelling framework. This can provide both short-term and long-term forecasts of all key system metrics, from system wide to individual assets.Discover more
Our understanding of market dynamics and modelling experience allow us to offer evidence-based recommendations on complex policy and regulatory issues that allow fully informed decision-making.Discover more
We advise on the optimal dispatch of assets within the wholesale market, forward planning of maintenance activities and valuation of commercial upgrades to plant.Discover more
We combine bottom-up unit-level modelling with market and policy insights to quantify the value and understand the risk associated with any generation asset.Discover more