With a firm understanding of the due diligence process in all major energy sectors and across many asset types – from energy commodity infrastructure to individual power generation assets – we work efficiently and responsively with our clients.
Decarbonisation policies are reshaping energy systems around the world. Demand for electricity is set to rise as governments take steps to encourage electrification of transport and heating.
Meanwhile, ever greater quantities of solar and wind capacity are being developed, and this is driving an associated increase in demand for batteries and other forms of flexibility.
Throughout the natural gas value chain, companies are reviewing their strategy because of shifts from coal to gas in the power sector, the decline of European gas reserves, the development of new pipelines and LNG terminals, and the long-term potential of hydrogen. These shifts present opportunities for a wide range of investors.
Investors in the energy sector are called on to navigate a shifting landscape of risks. Renewables are increasingly exposed to merchant price risks, either after their subsidies expire or throughout their lifetimes. As the share of renewables in power systems rises, price variability grows, and renewables increasingly find themselves selling electricity at the lowest-priced times. Where batteries could once have relied on long-term contracts for system services, in places they are now reliant on variations in short-term market prices.
Underlying this landscape are fundamental uncertainties about the policies that governments will enact as they target Net Zero emissions. Making the right decisions requires a sophisticated view of market dynamics and a deep knowledge of policy and regulation.
Our due diligence team provides responsiveness, a strong understanding of process, and clear and effective communication of results to senior management.
We have supported successful transactions in renewables, thermal power, energy storage and natural gas infrastructure across Europe.
Our market price forecasts are widely used and relied on for lending as well as for equity Investments. Our granular models allow us to provide plant-specific margin forecasts for dispatchable generation and storage, and site-specific price forecasts for wind and solar. Furthermore, our research team is continuously reviewing the latest policy and regulatory developments.
We provide bespoke reports that introduce prospective investors to the most relevant aspects of the market, set out the essential revenue and cost streams for an asset, and explain and quantify the market risks. For buy-side work, we can provide reviews of vendor materials ranging from high-level red-flag reports through to detailed bridging between vendors’ forecasts for an asset and our own expectations.
We offer ongoing support throughout the transaction process, working closely with financial advisors, participating in Q&A exchanges, helping assess the market aspects of issues identified elsewhere in the due diligence, and discussing our reports with prospective buyers or lenders as needed.
- Buy-side market due diligence for a CfD-backed GB offshore wind farm, including site-specific price forecasts, analysis of offshore transmission economics, and bespoke scenario analysis on different pathways for GB decarbonisation
- Market advisory support for the successful sale of a gas peaker and battery portfolio in GB for over £200m
- Lender market advisory for a portfolio of onshore wind across GB and Ireland supported by ROC and REFIT contracts, resulting in a financing package of over €350m
- Buy-side market due diligence for an investment worth over €400m in a central European gas transmission network, including forecasting of gas flows and bookings at each entry and exit point
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