How LCP specialists supported Ofgem in the review of complex transmission charging arrangements models.
Electricity markets around the world are fundamentally transforming. The push to decarbonise the network has led to the introduction of low-carbon support mechanisms, capacity markets, and an increase in the range and importance of ancillary service markets.
Conventional generation sources are increasingly complemented by intermittent renewables, demand side response and storage technologies.
As a result, electricity market modelling must adapt accordingly. LCP’s energy market forecasting has been continually enhanced to reflect these developments.
How we can help
At the core of how we help our clients with energy market analysis is the LCP EnVision model. With EnVision we are able to:
- Produce projections of the ﬁnancial performance of individual power plants
- Aggregate individual power plant dispatch to determine the overall dynamics of the market
- Capture the uncertainty in input assumptions through extensive stochastic capability
- Assess security of supply and capacity requirements using probabilistic metrics
- Identify the requirements to achieve decarbonisation goals
- Determine the role of renewables, demand side response and storage
- Estimate social policy costs and the impact on energy bills
EnVision was originally developed for the UK regulatory framework and policies but can be adapted to other markets. The model is equipped with a user-friendly data interface and result presentation; multiple scenarios can be tested for full sensitivity analysis.
How we have helped our clients
How LCP specialists delivered bottom-up modelling of the electricity market to assess investment dynamics in a reformed energy market.
Our energy market forecasting experts
Meet the team
Developing bespoke modelling solutions to supplement in-house analysis to suit the client’s needs.Meet some of our experts
Strategic advice aimed at maximising the benefits and minimising the risks associated with the Capacity Market and Contracts for Difference.Meet some of our experts
Insight into how the changing policy environment can impact businesses and evidence-based recommendations to address policy uncertainties.Meet some of our experts
Evaluation of investment decisions taking into account all aspects of the energy market.Meet some of our experts