Markets

Context

The energy sector around the world has recently undergone substantial changes including deregulation, privatisation, mergers, and the unbundling of former state-owned monopolies. The intentions of these changes varied depending on the context but they were generally concerned either with the introduction of competition (improving value to customers) or with creating an attractive climate for private investment. A number of different market models have been implemented internationally.

Contemporary concerns about energy security, coupled with the need to integrate large volumes of new renewable energy technologies and efficiently pool capital intensive resources, have driven a trend towards the development of regional power markets involving agreements between neighbouring countries. Linkages between electricity markets and the behaviour of upstream oil and gas markets are becoming increasingly important in many parts of the world, creating significant political and economic complexities. In addition, the development of carbon markets creates a whole new series of commercial considerations.

Our Key Strengths

PPA Energy's experience encompasses the principal European markets, and others in Asia, Africa and the Americas. Our approach is uniquely focused on creating functional, useable market mechanisms which are appropriate to the local physical, political and economic constraints, whether in developed or developing countries, without being tied to specific models or software implementations. Our skills encompass the design of regulatory structures, pricing strategies, asset valuations, development of market codes and standards, and advising on the development of business processes, incentives and implementation.

What we do:

• Market analysis
• Market structure design (advice on electricity trading arrangements, power pools etc.)
• Pricing and tariff studies (including transmission pricing, ancillary services design, wheeling charges)
• Operational Codes and Standards
• Business process design and implementation for system and market operations (including detailed advice on risk/reliability assessment, economic dispatch)
• Advice on metering, billing and settlement
• Regulatory reviews and calculation of tariffs, asset valuations, and assistance with regulatory accounting and price reviews