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
- The World Bank, Mozambique: Mining and gas technical assistance project
The World Bank, Mozambique: Mining and gas technical assistance projectAt the request of the Government, World Bank set up a Mining and Gas Technical Assistance Project (MAGTAP) to upgrade the mining and gas sector. The project aim was to undertake an institutional analysis study for the Ministry of Mineral Resources. The services FMC provided were the institutional review of functions of the Ministry, INP (regulatory) and ENH (national hydrocarbon company), and an inventory of facilities and equipment required to implement the institutional reform. In addition, to Maputo based MIREM and INP units and ENH, the audit comprised the visit and evaluation of at least the Provincial Directorates of Nampula, Tete, Manica and Niassa (for mining) and current/ proposed provincial department of INP in Pemba.
- Innovation Center Niedersachsen: Energy storage concept Niedersachsen
Innovation Center Niedersachsen: Energy storage concept NiedersachsenThe project aim was to create a development concept for energy storage in Lower Saxony, where Fichtner had to analyze mechanical and chemical formed grid scaled energy storage technologies. The services Fichtner provided within the framework of the concept development were involving the description of surface operating principles and underground storage technologies, the analysis of the potential storage capacity and time for responding to energy needs, and the feasibility with regard to construction and operation. On the basis of the capacity potential analysis and feasibility check, energy storage systems appropriate for Lower Saxony were ranked and compared according to priority and the technical performance of the technologies.
- Development of the market value of natural gas in Italy
Development of the market value of natural gas in ItalyFor a price review under a long term gas sales agreement for the German gas market, the services Fichtner provided were to analyze the development of the value of natural gas according to the market value principle. In the study about the development of the value of natural gas in the Italian gas market Fichtner described the applied methodology, the data sources used and the results. For this our experts examined the development of the legislative framework, the breakdown of the gas volumes into segments, as well as the development of energy prices for alternatives to natural gas and the market prices of gas for each segment.
- Development of gas prices in Germany
Development of gas prices in GermanyOn the basis of a study about the German gas market prepared by Fichtner, as a follow-up study Fichtner was asked to prepare an analysis of the development of gas prices. This analysis was based on actual end-user gas prices published by EUROSTAT. For this purpose, among others, the evolution of prices and market shares in the market segments residential, commercial, industry and power was investigated from 2004 to 2012. In addition the development of costs for transport, distribution and storage was analyzed for the same period.
- Energy Sector Gambia: Preparation of an energy sector study
Energy Sector Gambia: Preparation of an energy sector studyThe project aim was the conception of an energy strategy to improve the structural and strategic environment and to promote more efficient development of the national energy sector. The services FMC provided were effective corporate governance and auditing processes supported by reliable information on costs is a crucial factor for the decision-making process when fixing tariffs and evaluating capital and operating expenditures for energy supply operations. As a result, FMC created a study that was focused on the development of a national sectorial strategy on the basis of current sectorial studies and strategies, while following a thorough review of the NAWEC finances.
- LNG Bahia Foundation: Feasibility study for a LNG terminal
LNG Bahia Foundation: Feasibility study for a LNG terminalTo keep pace with Pakistan’s rising natural gas demand, a local Foundation wished to participate in this emerging market by constructing an offshore LNG import terminal in Sonmiani Bay, near Karachi. Taking a previous prefeasibility study as the basis, FMC conducted a complete feasibility study for this terminal.