Expertise in action: our power price forecasts
With more parties interested in investing in energy projects, potential investors need to make more competitive bids to earn the chance to invest in the most promising projects. Therefore, it is vital that investors fully understand the risks associated with a project so that they are comfortable with the level of risk they are taking on.
But the risk landscape for energy investments is changing fast. With some renewable energy technologies approaching grid parity, governments across Europe are phasing out subsidies, for example, on offshore wind projects. As such, renewable energy projects are now fully exposed to the merchant risk of the open market. And meanwhile, the rise of renewables is putting severe pressure on the revenues of conventional generation assets.
With the increasing cost reduction on the CAPEX side of renewable technologies, there is no margin for mistakes in the development, construction, and operation of the assets. All stakeholders need to have a good overview of their costs, their revenues, and their risks, in order to manage the projects to achieve the required profitability.
For over a year now, DNV GL has been offering our own power price forecasts for European countries, supported by interactive workshops. In these workshops, we present and discuss the fundamental elements of wholesale price formation in the target markets. This helps investors to understand these elements, their important interrelations, and our vision on their development.
This new service offering has been so well received, we’re expanding it. We work worldwide with all kinds of investors, from institutional to private equity, investigating their needs and requirements in all the technical areas of expertise.
DNV GL and investors
We offer specialist expertise to investors, covering operational excellence, due diligence and market analysis – as well as benchmarking, technology qualification and condition evaluation. And we have a variety of tools and simulation models of power markets, that, combined with our access to many energy datasets enable fact-based, reliable and accurate information and analysis.
In short, we help investors to understand the business consequences of technical decisions, and the technical consequences of business decisions.
Some of the things Carlos can help you with...
- Strategy support and feasibility studies
- Operational excellence
- Market analysis
- Technical due diligence
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