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Energy analytics

Supporting RWE participation
in the capacity market

How LCP advised RWE on the impact of the auctions on their generation portfolio and on wider market variables

Background

LCP has supported RWE to provide support in analysing the potential impacts of the Capacity Market and in its participation in the Capacity Market auctions.

Our solution

The initial engagement took place ahead of the first Capacity Market auction in 2014, and involved:

  • Analysis of the wider system impacts including the impact on wholesale prices, the revenues for different types of plant and the impact on consumer bills was conducted to support RWE’s response to the design proposals
  • Creation of Capacity Market auction model, to provide forecasts of clearing capacity and prices under a range of market scenarios.

The results

The bespoke tool provided gave results consistent with RWE’s internal wholesale market modelling and has been used on an ongoing basis to support their annual bid process.

We have provided ongoing support to RWE in developing these tools as the market design has developed.

How we can help

Bespoke modelling solutions

We can help our clients with a wide range of issues from whole system modelling to individual power plant and policy impact analysis.

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Capacity Market and CfD advice

Strategic advice aimed at maximising the benefits and minimising the risks associated with the Capacity Market and Contracts for Difference.

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Commercial and operational optimisation

We advise on the optimal dispatch of assets within the wholesale market, forward planning of maintenance activities and valuation of commercial upgrades to plant.

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Energy market forecasting and scenarios

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.

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Irish market support

We work extensively in the Irish market, providing market modelling and analysis to investors, generation owners and governments.

Irish market support
Policy impact studies

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.

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Transaction support and generation asset valuations

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. 

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