Watt Power gets commercial advice for UK’s 2016 Capacity Market auction
Buglass Energy Advisory provided finance and risk assessment for the auction, leading lender engagement with:
- Market review to assess lenders’ appetite for merchant risk;
- Profile of less traditional funding sources for thorough cost / benefit review;
- Target list of lenders most likely to provide flexible, competitive debt solutions (both project and asset finance);
- Support for preparation of project information package;
- Extensive discussions with lenders on potential contractual structures and acceptability of multiple revenue streams, including ancillary services;
- Multiple indicative financing terms, key inputs to client’s financial bid preparation.
BEA complemented the management’s deep electricity market and trading experience with financing risk assessment, advising the client to:
- Review, rank and select preferred lenders from competing debt proposals;
- Highlight potential concerns to deliverability of financing, key to determining client’s risk tolerance in bid.
Origami Energy advised on partner selection for battery storage project
During National Grid’s Enhanced Frequency Response tender in summer 2016, Buglass Energy Advisory advised Origami Energy on securing a strategic investment partner for its auction projects and its subsequent battery storage project pipeline.
While investor interest in the emerging storage sector proved strong (the auction attracted 1.3GW pre-qualification for 200MW of available contracts), financial investors had limited familiarity with the technology and the commercial drivers of the projects.
The Buglass Energy Advisory team assisted Origami:
- Profile potential investors, recommend a tender process including data room access and manage the interactions with multiple investors;
- Support investor understanding of business case and opportunity;
- Secure several committed offers of finance, allowing Origami to select its optimal partner.
Specialist Adviser to the House of Commons Energy and Climate Change Committee
“We will be looking at what steps Government must take to restore confidence in the UK’s energy sector and improve DECC’s policy making processes,” said The Committee on competitive process to select external advisers to assist during the inquiry into investor confidence 2015-2016. (source: ECCC website terms of reference)
Buglass Energy Advisory was selected and worked closely with the Committee throughout the Inquiry to:
- Review written evidence submissions to the Committee
Assisted Clerks in selection of witnesses and identification of themes;
- Attend formal Committee sessions;
- Provide bespoke commentary to Committee members on key investor concerns, as well as specialist sector advice;
- Review and comment on draft reports, especially on technical / investment matters, and support in development of final report.
Commercialisation of international pipeline of low carbon generation assets
Buglass Energy Advisory advised on commercialisation of an international pipeline of low carbon generation assets, particularly on partnering and UK regulatory matters in relation to funding (details confidential).
Buglass Energy Advisory worked with management to:
- Review project structure and contractual arrangements;
- Advise on multiple funding options to ensure commercial
flexibility was retained for future expansion;
- Perform informal soundings on appetite to invest among a range of potential funders;
- Support client in discussions on joint venture agreement with a leading utility as key development partner (preparation on negotiation strategy for high impact issues included);
- Provide risk / benefit analysis for inclusion of revenues from alternate government support frameworks (UK component);
- Deliver flexible, timely guidance despite very dynamic negotiation timescales.