Context: acquisition opportunity assessment of geothermal assets by ORMAT group

Objective: clarify the applicable regulatory framework and bring targeted insights about the cost-coverage conditions which would apply to the geothermal assets

• Analysis of the methodology put in place by the Regulatory Authority to evaluate the covered costs, e.g. investment, operating and study costs
• Identification of the regulatory risks and on-going / expected evolutions of the regulatory framework
• Assessment of the risks related to the capital remuneration rate and to the incentive remuneration scheme. Targeted benchmark of recent decisions of the regulatory Authority for similar cases

• Assessment of the different risks and identification of the prevailing uncertainty factors
• Detailed analysis of 2 scenarios and resulting recommendatio

Context:

• A European Transmission System Operator preparing its discussions with the NRA for the forthcoming regulatory period
• Major on-going changes of the market design and business environment: e.g. decrease of long-term capacity bookings and first application of the European Tariff Network Code

Objective:

• Build the negotiation strategy and back-up options of the TSO for its discussion rounds with the NRA
• Scope of work: regulatory framework and cost-recovery mechanisms, tariff structure and tariff levels at cross-border points, incentive schemes and inter-operator financial flows

• Quantitative / qualitative analysis of each specific element of the regulatory framework
• Targeted benchmarks: e.g. incentive schemes put in place in Europe, entry/exit tariff levels on main transit routes, pipe gas vs LNG relative competitiveness
• Advanced modelling of cost recovery options as resulting from the Tariff Network Code
• Close interactions and teamwork with the TSO regulatory team

• Definition of detailed objectives and back-up options
• Preparation of solid arguments, e.g. slides and/or position papers where appropriate
• Support to detailed written answer to the NRA’s public consultations

• Regulatory framework in line with the TSO’s expectations
• Proposal of an incentive scheme finally adopted by the NRA
• Avoidance of non-acceptable options from the TSO’s point of view

Context: a price review has been requested by the Client on a long-term gas major supply contract. A first valuation of the contract has been made on a netback approach by an independent expert. Given the huge stake of the PR, such valuation had to be cross-checked and completed by a third-party analysis made by Emerton

Objectives:

• Assess the consistency, robustness and accuracy of the valuation model and propose adjustments as the case may be
• Provide a quantitative analysis of the European retail markets of the PR: profitability of gas retailers analysis of gross margins, net margins, identification of the price drivers and price references on each market segment

• Detailed analysis of the whole set of assumptions made on each element of the value chain of natural gas commercialization: supply options and wholesale markets, transmission and distribution, modelling of storage and modulation, gross and net margins, commercial costs, retail gas prices structure and levels per market segment
• Identification of risks, proposal of detailed adaptations and fine-tuning of the valuation model
• Major improvements of the robustness and reliability of the model

• Quantitative analysis of retail market dynamics: market shares of players, HHI index, major supply schemes, competition intensity
• Analysis of commercial offers per market segment and final customers’ expectations e.g. direct access to wholesale markets, development of joint purchasing
• Detailed quantitative analysis of retail margins and marketing costs per market segment
• Role of midstream infrastructure operators

• Robust, detailed and clear expert report
• Very positive issue of the PR for our client