How LCP specialists delivered bottom-up modelling of the electricity market to assess investment dynamics in a reformed energy market.
support and generation asset valuations
Decarbonisation, affordability and security of supply challenges have led governments around Europe to introduce energy subsidies and capacity auctions to stimulate investment.
This has fundamentally transformed the investment dynamics, the way energy market participants are remunerated and the value of energy assets. In particular, there is a growing need to understand the revenues and costs associated with ancillary services such as balancing costs that are set to become material for investment decisions.
How we can help
Understanding the future of generation assets has become increasingly complex: valuing multiple revenue opportunities, how they will change in future and how they interact. 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.
We support acquisition, new build or internal valuations across the full range of technologies in GB and Ireland: from CCGT through to small scale renewables.
Our in-depth modelling assesses the stack of revenues available to all technology classes:
- Ancillary services
- Capacity market
- Renewable support
- Embedded benefits
We can assess projects under different market scenarios, including key uncertainties such as decarbonisation and decentralisation of the generation mix, policy changes, commodity prices, and increased market penetration leading to the cannibalisation of revenues.
How we have helped our clients
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.
How LCP specialists helped the UK government quantify the risk of power blackouts.
LCP has worked with a number of investors and generation owners in GB and Ireland to evaluate specific wind assets.
Our Transaction support and generation asset valuations experts
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 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 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
We work extensively in the Irish market, providing market modelling and analysis to investors, generation owners and governments.Irish market support