Sustainable Solutions for Energy Providers
The five trends in the energy sector, namely digitalization, decarbonization, decentralization, demographic change and diversification of conventional business models, are transforming this sector in German-speaking countries and necessitating strategic repositioning and adjustments to established business models. On an international level, the increased involvement of private investors and integration of renewable energy plants are also changing the market design and the perception of market players’ roles.
In the course of our consulting projects, we help many companies in the energy sector to exploit their potential, from tailoring development of their corporate strategy through to assisting them in implementing their strategy. We work in partnership with our clients to achieve these goals, and our clients are always the focus of our efforts. Ours is not a “one size fits all” approach, rather we seek out the best bespoke solution in each individual case.
Our main focal areas in the field of energy sector consulting are as follows:
- Sale of Energy and Services
The sale of power and gas is coming under increasing pressure from changes to customer requirements, intense competition (including the emergence of new players) and progressive digitalization.
Based on our extensive experience in sales strategies and detailed know-how in procurement and sales processes, we assist you in further optimizing your processes, digitalizing customer access, ensuring reasonable risk management in energy procurement, and raising your customers’ loyalty. In this respect, selling new services is only one possibility of many. One answer to the growing complexity could be to form new partnerships.
With our knowledge of sales service providers, we can help you to identify exactly the right partners for you and are happy to provide support through to contract negotiation. We also offer these services in both the German and the Swiss market.
- Future-Proof Generation Portfolio
The constantly changing economic and regulatory conditions as well as increased integration of renewable energies into the energy mix greatly affect the profitability of individual power generation facilities and portfolios. Diversifying the power generation portfolio helps to alleviate offtake and price risks.
Together with our clients, we develop investment and asset strategies in keeping with the corporate strategy and assess these according to risk factors as well as their input towards sustainably securing contribution margins.
- Operationalization of Strategic Projects
Increased complexity in the energy sector creates the need for a broad range of expertise and ties up valuable capacities in managing and implementing strategic projects. We know our way around the energy sector and the market processes, are up to date on regulatory requirements and changes, are used to working in interdisciplinary teams, and have extensive experience in managing complex projects including those employing an agile approach.
With this broad project management and communications expertise, we assist you in implementing your projects within time and budget frameworks and coordinate the various components of a solution between different disciplines and departments (IT, business, financial controlling, etc.).
- Decarbonization of Heating
The “heat transition”, i.e. the energy transition with respect to heat supply, is still in its infancy, no doubt down in part to the individual grid structures, grid topologies and generation options, which often require solutions specific to individual urban quarters.
Decarbonization guidelines set out by the sector targets in the German government’s Climate Action Plan will lead to significant changes. The timely development of “green” heating strategies will ensure that your company remains competitive. We assist you in developing local “green” heating strategies and in implementing these – from designing district heating, group heating and urban quarter solutions, to exploiting flexibilities with storage and energy integration technologies, through to carrying out technical implementation.
Together with you, we develop suitable heat pricing models for your supply solutions to ensure that contribution margins continue to be generated.
- Scenario Analysis of Gas Demand
Natural gas now covers around 24% of ultimate energy demand, with this figure rising to 45% in the heating sector. This success story is being jeopardized by climate protection policy. It is foreseeable that adjustments to business models and corresponding transformation paths will need to be developed for existing gas infrastructure – from transmission and storage through to final distribution.
To acquire the best possible understanding of how your future contribution margins will develop, we examine the gas demands and gas revenues for individual consumer types in jointly defined scenarios. We use the result as the basis for checking your target network planning and maintenance strategy. Together with you, we develop strategic measures to limit revenue risks in relation to gas grid operation and come up with ideas for new business segments. Alternative grid concepts may be a component of such solutions.
References for typical projects
- Transaction Advice for the acquisition of a Hungarian gas-fired power plant, pre due diligence
Transaction Advice for the acquisition of a Hungarian gas-fired power plant, pre due diligenceThe client was planning to acquire shares of the Hungarian project company EMFESZ Power Plant Kft., for the construction of a gas power plant in Nyírtass in Hungary. The project had two phases. In the first phase an 820 MW gas power plant was planned and in the second phase the further expansion of the power plant. FMC developed for the client, a market analysis, market entry strategy, a risk assessment, the pre due diligence of the project and advised on the transaction.
- Market and competition analysis and assssement of the sales success for a Swiss canton utility
Market and competition analysis and assssement of the sales success for a Swiss canton utilityThe project aim was to reinforce the sales positioning of a Swiss canton utility in Germany, by building up retail sales with the focus on B2C customers in Germany outside of its own grid territory. The services FMC provided were the undertaking of a market and competition analysis in the territory near the Swiss border, to assess the potential sales success and review economic performance in a business case exercise. As a result, FMC produced a simulation model that takes into consideration the impacts of strategic marketing decisions and cost components as well as finding application for reviewing and verifying other tasks in sales and sales services.
- SW Winterthur: Reorientation in the areas trade, procurement and sales
SW Winterthur: Reorientation in the areas trade, procurement and salesThe project aim was the restructuring of the trading, procurement and marketing departments of a large municipal utility to take account the development of the Swiss power market. The services FMC provided were reworking the existing procurement strategy, transfer of responsibility for procurement in the interim management, setting up and implementing a tool for procurement and risk oversight, assisting in the development of internal and external procedures for drawing up electricity schedules (also in cooperation with service providers) and upgrading forecasting quality, contract negotiations for managing a sub-balancing group, setting up procedures for schedule transmission and data communication with distribution system operators and finally flanking support for configuring and implementing a portfolio management and forecasting system.
- EPH: Technical evaluation of thermal power plants, due diligence
EPH: Technical evaluation of thermal power plants, due diligenceFMC supported a strategic investor in the technical evaluation of thermal power plants in Italy (coal and gas fired). Based on an inventory evaluation, the future investment needs were assessed along with the estimated operating costs. The scope further included the analysis of environmental risks and issues with the permit. As a result the findings of the study were summarized in a due diligence report.
- Preparation of a technical and environmental due diligence for an Utility
Preparation of a technical and environmental due diligence for an UtilityA utility intended to divest up to 25% of its power generation and distribution assets. The project aim of this transaction was to generate capital inflow, to increase the operational know how of the company and improve the management capabilities. FMC supported the process by carrying out a technical and environmental due diligence of the power generation and distribution assets. Furthermore, together with a group of advisors, the process was supported with regard to the development of a favorable legal and regulatory environment for the transaction and any other activities related to the transaction process.
- Saudi Arabia, Electricity & Co-Generation Regulatory Authority: Development of key performance indicators for the evaluation of existing assets
Saudi Arabia, Electricity & Co-Generation Regulatory Authority: Development of key performance indicators for the evaluation of existing assetsThe project aim was the evaluation of the existing facilities of a Regulatory Authority in Middle East with regard to their performance and availability. The services FMC provided were the identification of the appropriate key performance figures and compare these with the international standards used in similar industries so that improvement of the facilities could be achieved.