The ideal starting point for taking decisions
In order to take decisions, it is essential to have comprehensive information on investment targets and relevant economic constraints and conditions. Fichtner Management Consulting (FMC) advises investors and financing banks all over the world in identifying and evaluating investment projects. Furthermore, we provide support to regulatory agencies and other public institutions in developing the economic framework that promotes attainment of national energy policy objectives.
- Feasibility Studies
With a proven track record of advising private developers, public utilities and international financial institutions on the appraisal and evaluation of utility projects, we assess the financial and economic feasibility of their projects. The FMC team builds on its huge experience with interdisciplinary teams from the Fichtner Group. For projects financed by development banks, additionally we prepare economic cost-benefit or microeconomic analyses.
- Financial and Economic Modelling
The FMC financial modelling team builds financial and economic models that can be used by our clients to support business critical decisions and are tailored to the developments stage of the project or program on hand. We adhere to best practice standards which ensure our models are reliable, robust and readily understood. Moreover, we focus on a transparent model structure and clear modelling style. The FMC modelling team has substantial experience in working with multidisciplinary teams for a broad range of utility projects and IFI programs, which includes the elaboration of the models such as:
- Review/Screening models on a pre-feasibility level, including multi-project programs
- Financial and economic analysis on a feasibility level
- Non-recourse project financing models
- Tariff models
- Bid evaluation modelsSystem optimization models, including isolated hybrid renewable power systems
- Models for sustainable energy financing facilities
- Due diligence and corporate valuation models
- Regulatory Support and Tariff Studies
FMC has advised numerous regulators, utilities and policy makers all over the world based upon our in-depth experience and expertise in the (tariff) regulation of the power, water and district heating sector. We are well familiar with comprehensive tariff studies for the whole sector as well as projects dealing with selected aspects of regulation in certain areas. We offer a full range of services from review and benchmark of methodologies, over development of new concepts, up to the hands-on implementation of the proposed changes and regulatory provisions:
- Support of regulatory authorities – development of comprehensive frameworks or improvement of selected aspects
- Regulatory advisory for utilities – review and gap analysis, quantification of regulatory provisions, consultation support
- Determination of revenue requirements, cost of service and tariffs – conceptual and modelling services
- Implementation support
- Market and Sector Studies
FMC advises its clients on all aspects of energy and water markets development. We investigate and analyse market conditions and the related interaction of policies, trading mechanisms, demand development and pricing in the energy and water sectors. As global player with in-depth industry knowledge, we enable our clients to strategically position themselves, follow best industry practice, avert risks and act in an economically sustainable and forward-looking manner. With our experience and expertise FMC also advises policy makers on integration of sustainable technologies, development of regulation and planning for system development.
- Energy and water market studies
- Dispatch rules and system operation
- Energy and water efficiency measures
- Strategic planning and investment decisions
- Market opportunities
- Analysis of tariff structures
- Demand forecasting
- Sustainable Energy and Green Economy Financing Facilities
FMC acts as the program consultant for the management and implementation of Financing Facilities and multi-project programs for utilities and IFI’s. These facilities are structured to provide financing from financial institutions to energy efficiency and sustainable energy projects. Our services include:
- Providing overall coordination of the program, including the assessment and implementation of energy efficiency and sustainable energy projects
- Promoting the program through public awareness and marketing campaignsProactively working with local banks in identifying eligible projects and the training of loan managers
- Screening and assessing the eligibility of the proposed sub-projects
- Elaboration of detailed energy audits
- Monitoring and performance reporting for the program sponsor
- Performance Audits and Monitoring Programs
FMC supports Governments, IFI’s and internal auditors with the design and execution of performance audits for utilities. We at FMC understand performance audits for utilities as an independent assessment process aimed at evaluating the measures instituted by management or the lack of these measures to ensure that resources have been acquired economically and are utilised efficiently and effectively. Our approach to performance auditing includes reviewing the utility’s performance indicators and corporate reporting system. As a result, we enable stakeholders to assess the strategies adopted by the utilities management and the progress toward meeting the set short term and strategic targets. Our team of auditors moreover provide performance monitoring services for multi-project financing facilities and utility management performance contracts.
References for typical projects
- Concept for the achievement of a 100% renewable energy region
Concept for the achievement of a 100% renewable energy regionThe project aim was to build a portfolio of renewable energy sources (RES) systems, including assessing the potential for renewable energy generation to the electricity consumption in the distribution network. To determine the theoretical potential, statistical data (climate, weather, land use) on the region as well as input from expert interviews was incorporated. For suitable locations achievable energy yields were estimated based on each RES technology. Based on the specific investment costs and the expected potential revenues were also assessed. At the end of the project FMC presented the study results to the client, and policy makers.
- EBRD: Advice for small investment projects in Moldova
EBRD: Advice for small investment projects in MoldovaFMC acted as project consultant for the development and management of the Moldovan Sustainable Energy financing Facility (MoSEFF) with the aim of familiarizing local financial institutions, i.e. banks, with appraising and financing energy efficiency and small renewable energy investment projects, while local engineers were developing the technical expertise to identify, assess and prepare technically feasible and bankable projects. As an anticipated outcome, this facility is expected to develop, strengthen and establish a self-financing market for investments in sustainable energy projects in Armenia. With an available loan volume of around 40 mn EUR, the facility will furthermore significantly reduce primary energy consumption in the country and create financial savings in the implementing companies.
- IFC: Development of a strategy for the geothermal sector in Ethiopia
IFC: Development of a strategy for the geothermal sector in EthiopiaAs part of the Ethiopian Scaling up Renewable Energy Program (SREP), the International Finance Corporation (IFC) drew up a long-term strategy for the geothermal sector, from which recommendations for developing geothermal energy in Ethiopia would be derived. The services FMC provided were to develop the long-term strategy for the geothermal sector under consideration of the necessary development potential of the geothermal business environment on government level and various institutions, so as to initiate and ensure symbiosis of geothermal developers over the long term.
- The World Bank: Energy saving in the Kyrgyz Republic and Tajikistan
The World Bank: Energy saving in the Kyrgyz Republic and TajikistanThe energy sector of the Kyrgyz Republic and Tajikistan depends greatly on domestic hydropower resources that account a high percentage on both of the countries’ electricity mixes. The project aim was to address the electricity shortfalls during the winter months in both countries. The services FMC provided were the identification of boiler heating options and related energy efficiency measures in urban residential and public buildings.
- Kosovo: Development of a new tariff methodology for district heating
Kosovo: Development of a new tariff methodology for district heatingThe project aim was broken down into two parts. Part 1 comprised a critical review of the current regulatory framework for district heating with the development of a new methodology for fixing tariffs that takes into consideration combined heat and power generation and at the same time guarantees that costs will be covered with appropriate district heat tariffs. While, Part 2 was to adapt and optimize the present in feed tariffs to create an effective and economically efficient policy based on international good practice. The services FMC provided were involving reworking and updating ERO`s feed-in tariffs for the selected renewable energies of biomass and biogas. As a result, a study on grid integration was prepared with the intention to contribute in creating the conditions for raising the capacity of renewable energies in the Kosovian energy network.
- District heating feasibility study and economical evaluation
District heating feasibility study and economical evaluationA municipality in close proximity of an industrial park is considering the construction of a district heating network and use of decoupled heat investments from the industrial parks. FMC developed a feasibility study including an efficient initial assessment. The services FMC provided were the estimation of the total heat demand of the community and the required power input, talking under consideration the current heat supply. Furthermore, FMC outlined the design and Line layout of the distribution network and determined the cost of district heating and the resulting prices based on consumer type. The estimated cost of district heating were subsequently compared with the cost of other heating supply options and derived from a recommendation for investment decisions.