Sustainability and Technology Transformation

Understanding the changing market context, technology applications and key facts & figures is becoming more relevant for our customers to face new strategic and investment decisions.

Providing continuous and constant national and internationalmarket advise is a very relevant support under current changing power sector:

• Operational and market monitoring;
• monthly analysis of energy revenues/costs and regulatory remuneration and the potential adjustments based on market price;
• ad-hoc periodical reports including market analysis according to the customer needs.

On the other hand from the understand the technology that are enable current power sector transformation is a differentiation factor from our competitors and an added value for our customers, as we can help them to understand the technologies from very different angles, such as:

Our support in the optimization of these parameters to obtain the best result for the company is an improvement of their energy strategy, highly affected by:

• The volatility of the electricity prices increases the exposure of consumers and generators to price risk. Consequently, they have lower capacity to predict energy expenditure and incomes.
• Liberalization of the markets increases the range of alternatives for consumers (contract one of the increasing number of retail companies, sign a PPA, …) and for generators (sign a PPA, auction participation, define a hedging strategy…), resulting in a complex decision making process.
• New regulatory and technological alternatives, such as energy storage, self consumption, green certificates or demand response introduce also new challenges for our customer whose risk and benefits need to be evaluated.

Regulation and policy are key enablers of energy transition, which can also introduce risks and opportunities to our customers’ business, requiring accurate support to minimize the impact and maximize results.

When formulating new policies, it is important to maintain a clear overview of three pillars: (i) the instruments available, (ii) the areas in which we want the policy to intervene and (iii) the output that we expect from these actions.

The democratization and decentralization of the power sector introduces complexity not only for policy makers but for those emerging players that have not specific background in the energy sector such as e-transport operators or self-consumers.

Our deep understanding of energy sector current policies and trends allows as to provide expert advise to our customer. Additionally, our we can provide regulatory expert advise and support to deal with:

• Impact assessment of new regulatory measures;
• regulatory compliance evaluation;
• preparation of allegations to legislation proposals and network codes;

Decision making processes complexity is growing, modelling the economic performance of new or existing investments and optimizing them to ensure technical and regulatory feasibility is one of the key pillars of STT practice.

One good example of this complexity, though not the only one, is the relevance of technical, economic and regulatory criteria for the optimization of T&D investments, as reflected in the following diagram: