Energy and carbon markets

Energetics' energy markets experts provide advice that is independent, transparent and based on the specific needs of large energy users.  Across electricity, gas and renewables, we develop risk-managed energy solutions tailored to the individual needs of our clients.  Our advice spans a range of flexible and fixed price contracting options and analysis of the risks and opportunities for investments in large scale energy generation.

Corporate renewable energy procurement: An increasing number of our clients are commissioning renewable energy projects to reduce greenhouse gas emissions, limit pass-through costs for environmental charges, or even to provide a partial hedge against future electricity price escalations. Energetics supports businesses by assessing a range of renewable energy options, from self-sourcing large scale generation certificates and on-site generation (with a range of possible financing structures), to more complex supply corporate Power Purchase Agreements (PPAs), including ‘synthetic’ PPAs (which do not require the involvement of retailers), as well as direct and indirect PPAs. We work with our clients to determine the most appropriate option given their exposure to electricity and carbon emissions risks. This includes defining the optimal contracting model and commercial terms, as well as the most appropriate procurement strategy. Energetics is independent from retailers and generators and we support our clients with a competitive tendering process. We also have technical and wholesale electricity market capabilities to provide robust energy market, as well as technical and commercial due diligence services.

Best practice energy procurement: Energetics applies a tailored, risk-managed approach which assesses contracting structures from fixed price forward contracts and/or progressive forward purchasing, as well as wholesale-priced contracts in the case of natural gas. Our forward-looking market-based advice considers optimal timing, volume and price of contracting decisions, on the futures or spot market.  We draw on our experts' trading experience in the wholesale energy markets, our unique market analysis and market modelling capabilities and our extensive market intelligence gathered since 1998, when deregulation started.

Market-based valuation of energy generation assets: In the current rapidly changing energy market environment, extrapolation of historical trends is of no value when assessing future value of existing energy generation portfolios or investing in new generation assets. Energetics' unique power market valuation and price forecasting approach relies on a well-proven model that estimates spot market prices by replicating the underlying structural changes in supply and demand.  We include a calibrated module to estimate volume and bidding behaviour per dispatching unit and offer the ability to model prices down to trading intervals to quantify production weighted wholesale price or price arbitrage options. This quantitative modelling capability is further used to support the negotiation of commercial term sheets  with well balanced, risk-based performance guarantees and ‘painshare-gainshare’ arrangements.

Demand response and energy storage capabilities: Interest in demand response products and energy storage systems is rising in order to capture opportunities from high wholesale electricity spot price events. Our insights into future reserve margins and prices in the different wholesale electricity markets have proven critical when quantifying potential net revenue risks and opportunities from load balancing systems and for helping business to ensure optimal operation. In addition to our electricity market real-time monitoring capabilities and experience in implementing demand management projects over the last 30 years, we can support the actual dispatching process of energy from such systems.

Budgeting and price forecasting: Energetics' unique energy market modelling capability evaluates market drivers to forecast prices for the retail, network and environmental charges over long time horizons, providing large energy users with critical risk management insights for budgeting purposes. 

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