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
- Arbitration regarding a power plant project
Arbitration regarding a power plant projectAs part of a civil litigation relating to a the construction of a new power plant, the services Fichtner provides are to evaluate what, if any, economic damage resulted from delays in commissioning the plant and to appraise various methods of determining alleged damages that are cited by the opposing party at different times. As a result, FMC provides an independent estimate of the damages along with Expert assessments for use in settlement negotiations and court proceedings.
- Stadtwerke Barth: District Heating Pricing
Stadtwerke Barth: District Heating PricingA municipal utility generates district heating in a gas-fired packaged CHP plant. The present district heating price structure reflects gas purchasing risks only inadequately while high district heating prices make it difficult to acquire new customers. Fichtner develops a price formula that reflects the cost structure and risks by analyzing cost and revenue structures for plant operation with wholesale gas purchases as well as heat and power sales; modeling heat and power generation; creating a costing model; derivation of a price formula; and testing its range of validity. The outcome is a proposal for a district heating pricing formula incorporating price escalation with transfer of this pricing model to the municipal utility.
- 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.
- 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.
- Ukraine Lviv: Development of a financial and operational performance improvement
Ukraine Lviv: Development of a financial and operational performance improvementThe project aim was to improve the commercial standing of the Lviv municipal utility, provide the conditions for project implementation and ensure that services for retail customers were equitably rendered and of high quality. The services FMC provided were the draw up of a short-term financial and operational performance improvement program to bring about upgrades in key areas of financial and operational management and, in collaboration with the company and the city council, conceptualizes a public service commission (PSC). As a result, FMC verified that the existing tariff structure complied with the tariff clauses in the loan agreement and in the municipal support and guaranteed contract as well as with local tariff law, including the statutory provisions of the national tariff regulator.
- Ministry of Energy and Mineral Resources (MEMR) of Jordan: Transaction advisor for renewable energy projects
Ministry of Energy and Mineral Resources (MEMR) of Jordan: Transaction advisor for renewable energy projectsThe Ministry of Energy and Mineral Resources (MEMR) of a Jordan launched a program to attract private developers to invest in renewable energy projects through a direct proposal submission scheme. The services FMC provided were the support to the MEMR during the implementation of such scheme that included the following: selection of pre-qualified developers, preparation of instructions for proposal development, drafting of project agreements, managing the proposal development phase, evaluating proposal documents, and assisting MEMR and national electricity power company during negotiations, signing and financial closing.