Due Diligence Assessment of Power Markets. Confidential Customer. Panama and Dominican Republic. As part of a team led by Castalia, was engaged to conduct a due diligence assessment of the power market in Panama and the Dominican Republic in support of a confidential customer’s evaluation of a potential target acquisition opportunity. The scope of work for the initial phase of the engagement involved the following: (i) overview of electricity market, with emphasis on the industry and market structures, the policy and regulatory arrangements, and a description of the factors that are most important to revenue and risk, (ii) review and analysis of available demand forecasts (both from official sources and those developed by the management of the acquisition target), and (iii) development of price curves for a representative day, one per year, from 2018 to 2025, as well as one for 2030 (2019).
Independent Engineer (IE) Services for the Potential Acquisition of a Power Delivery Utility. Confidential Customer. Colombia. As part of a team led by K&M Advisors, LLC, was engaged to produce a “red flags” report in support of a confidential customer’s evaluation of this potential acquisition opportunity. Reviewed documents provided in the virtual data room, participated in a management presentation and site visit, assessed the performance of the utility, reviewed the operations and maintenance costs (“O&M”) and capital expenditures forecast as provided by the Seller. The review was limited primarily to technical issues and the possible impact of those issues on the future performance of the power delivery utility (2019).
Independent Engineer (IE) Services for the Potential Acquisition of Power Delivery Assets. Confidential Customer. USA. As part of a team led by Advisian and Siemens, currently engaged to conduct a technical assessment in support of the potential acquisition by customer of certain power delivery assets in a major U.S. city. Applied both a top-down (benchmarking) and a bottom-up (planning) approach using data available in the public domain (such as from FERC Form 1 responses and rate case filings) to develop a range of costs for the annual on-going capital expenditures (CapEx) and operation and maintenance (O&M) expenses, and start-up/transition costs to be incurred to safely, reliably, and economically serve existing and future load (2019-Ongoing).
Pre-Feasibility Studies of Several Power System Infrastructure Projects. Inter-American Development Bank. Suriname. As part of a team led by Castalia, assisted the Inter-American Development Bank with the performance of pre-feasibility studies for three power delivery infrastructure projects in Suriname. Reviewed existing data, drafted descriptions and justifications for the projects, developed preliminary designs and costing, evaluated (via system simulations) the expected benefits and impacts, proposed a project implementation plan and developed budget estimates (2019).
Independent Engineer (IE) Services for the Potential Acquisition of the 500 kV Fort McMurray West Transmission Project. Canada. As part of a team led by Lummus Consultants, was engaged to perform a due diligence review of the Fort McMurray West transmission project (“Project”) in support of the potential acquisition of the project. Reviewed the documents provided in the virtual data room, participated in a management presentation and site visit, assessed the major equipment and systems design, reviewed the operations and maintenance costs (“O&M”) and capital expenditures forecast as provided by the Seller. The review was limited primarily to technical issues and the possible impact of those issues on the Project’s commercial terms and conditions (2019).
Independent Engineer Services. Umeme CapEx Program. International Finance Corporation (“IFC”). Uganda. Engaged by the IFC to provide Independent Engineer (“IE”) advisory services in connection with the potential financing of a portion of an approximately USD 400m 5-year Capital Expenditure (“CapEx”) program for Umeme, Uganda’s main distribution company. The scope of work included the following tasks: (1) review of the investment plan prepared by Umeme to assess its adequacy to meet regulatory targets; (2) review of the historical regulatory approval process; (3) review of historical capital improvement projects and budget variances; (4) review key assumptions of the financial model; (5) review of historical demand and available projections by type of customer; (6) review regulatory tariff formula; (7) review operational assumptions (inter alia with respect to performance, system losses, maintenance plan and availability); (8) review working capital assumptions; (9) review contracts, operation and maintenance reports and records; (10) review and assess system performance; (11) review annual operation and maintenance (O&M) budgets; (12) review key staffing capacity, planning processes and compliance with regulatory capex processes; and (13) review consents, permits and approvals (2019-Ongoing).
Replacement Cost New (RCN) Analysis of the Volney-Marcy Transmission Line in New York State, USA. ArcLight Energy Partners Fund. USA. Engaged by Lummus Consultants (ultimate client was ArcLight) to:(1) do an inventory and classification of the constitutive elements of the asset (e.g., transmission line, substations, etc.) by type; (2) determine the unit costs of the constitutive elements of the transmission asset; and (3) calculate the RCN of the asset from the constitutive elements and the corresponding unit costs (2019).
Independent Technical Assessment of the Long-Term Asset Management Plans for the Muskrat Falls Hydroelectric Project, the Labrador-Island Transmission Link, the Labrador Transmission Assets and the Maritime Link. NSP Maritime Link Inc. (“NSPML”). Canada. As part of a team led by Lummus Consultants was engaged by NSPML to: (1) perform a review of the basis of design and capital costs of the power delivery assets; (2) review the asset management plans, including the operational principles and operations and maintenance (O&M) costs for each of the power delivery assets; (3) perform a benchmarking analysis of the O&M costs. This involved establishing an appropriate peer group for each of the power delivery assets from other North American projects, providing a general description of the peer group and the basis for comparison, benchmarking the O&M costs for each of the power delivery assets, commenting on the position of each asset relative to the peer group; establishing the O&M philosophy similarities and differences between the various owners of the assets; and providing commentary on the underlying factors for the similarities and differences; and (4) provide advice and general support relative to the O&M discussions between NSPML and the other owner of the power delivery assets relative to their Joint Operating Agreement (2018-Ongoing).
Development of Electricity Sector Plan (ESP) 2019-2024. Suriname. As part of a team led by Castalia, assisted the Inter-American Development Bank with the development of the ESP for Suriname. The ESP is prescribed in the Electricity Act of Suriname and is intended to guide the sustainable development of the power sector in that country with the overarching objective of assuring a reliable supply of electricity for the country for the next 20 years. The ESP comprises three major elements: (1) a Strategic Plan (a 20-year horizon plan), (2) a Technical Plan (a 5-year plan), and (3) a Regulatory Plan. The Trade-Off Risk Method was applied for the determination of the optimal expansion plans for the generation, transmission, and distribution systems in the country. Accordingly, options and uncertainties were formulated leading to the development of scenarios. Expansion plans were developed for each scenario and based on the calculated attributes and through the application of decision-making under uncertainty approaches, a recommended optimal plan was developed (2018).
Advisory Services for the Development of a Financing Strategy and Project Prioritization Tool. Inter-American Development Bank (IDB). Brazil and South America. As part of a team led by Castalia, was engaged by the IDB to assist the Bank and the Government of Brazil to: (1) design a strategy to incorporate innovative financing mechanisms for regional integration infrastructure projects in the transport and energy sectors; and (2) develop a selection and prioritization methodology and tool for the integration of infrastructure projects in transport and energy that effectively incorporates the proposed innovative financing mechanisms (2018).
Advisory Services for the Preparation of a Corporate Financial Strategy for PLN. World Bank. Indonesia. As part of a team led by Castalia, was engaged by the World Bank to support PLN (Perusahaan Listrik Negara, the national utility of Indonesia), the Ministry of Finance (MoF) and other key stakeholders with the development of a sustainable new Corporate Financial Strategy for PLN. Responsible for the technical elements of the diagnostic and options analysis, including the engineering and technical analysis of the RUPTL (Ten Year Government Plan), RJPP (Five Year PLN Corporate Plan) and RKAP (PLN Annual Budget) focusing on gap analysis, project definition, options analysis, planning standards, technical and financial evaluation, and project prioritization. Also recommending options to improve the system planning and development process, including performing an analysis of the strengths and weaknesses of the recommended options and their likely impact on the planning process (2018-2019).
Independent Engineer (IE) Services for the Potential Acquisition of the Montana-Alberta Tie-Line (MATL). USA and Canada. As part of a team led by Lummus Consultants, was engaged by a confidential customer to perform a due diligence review of the MATL project in support of their potential acquisition of the project. The scope included attending a management presentation, performing a site visit and reviewing the data room documents in order to: (i) assess the historical and projected technical performance of the project in terms of the prevailing Key Performance Indicators (including capacity, line losses, availability and forced outage rates); (ii) review and comment on the reasonableness of the CapEx budgets compared to those of comparable projects; (iii) review the personnel, operation and maintenance practices and philosophies, and management plans in order to assess the adequacy of system operations and budgets, to identify potential cost optimization measures, and to develop an assessment of needed enhancements; (iv) assess the nature and extent of services currently provided by the Seller with a detail of costs by service; (v) discuss areas where costs may decrease/increase due to setting up MATL as a stand-alone business post acquisition, and (vi) evaluate the remaining useful life of the asset (2018).
Independent Engineer (IE) Services for the Financing of Three Transmission Line Projects. USA.As part of a team led by Lummus Consultants, was engaged by a confidential customer to perform a due diligence review of three greenfield transmission lines in the USA with the ultimate purpose of securing financing for the projects. For each transmission line, reviewed the project design and the engineering, procurement and construction (“EPC”) contract(s) with a focus on the technical aspects and risks, including but not limited to the contract structure, cost, incentives and penalties/liquidated damages provisions, commissioning and testing procedures, performance requirements, parameters, and guarantees. Further, reviewed the warranties under the project contracts as well as the overall capital cost estimates of the projects and based on comparative analysis (benchmarking), opined on the reasonableness and sufficiency of such estimates. Finally, reviewed the operations and maintenance agreements and other relevant contracts, including the various agreements with the regional transmission owners and operators (2018).
Reform Options Study for Communauté Electrique du Bénin. World Bank. Benin and Togo. Grid Advisors, LLC worked with Castalia on a World Bank-sponsored study to identify and flesh out a preferred option for the institutional reform of CEB that would allow it to meet the current power sector needs of its two national stakeholders: Benin and Togo. The preferred option was identified from a number of relevant alternatives as part of a consensus building process with the two countries. The primary components of this study were to: (a) perform a first order technical, financial and institutional diagnostic of CEB; (b) propose a limited number of coherent options for a future reform of the sector; and (c) flesh out an implementation road map for the preferred option (2018).
Power Sector Participation Project for the Electricity Company of Ghana (ECG.) International Finance Corporation (IFC). Ghana. Engaged as technical consultant by the IFC, the lead transaction advisor to the Government of Ghana (GoG) (through the Millennium Development Authority or MiDA), for the introduction of private sector participation (PSP) in ECG, the country’s largest power distribution utility. Our scope of the engagement included the following: (i) assistance with the operational transformation of ECG to an asset holding company; (ii) assistance in the preparation of a Transaction Structuring Report (TSR) (including making recommendations on a Key Performance Indicator regime and a tariff regime), and (iii) general transaction support, including technical assistance during the bidding process (2015-2019).
Independent Technical Review and Assessment of the Transmission and Distribution Assets and Operations of an Electric Utility Company. Confidential Client. Zambia. Provided independent technical consulting services to support a confidential client in its investigation into a potential investment involving an electricity utility in Zambia. The review focused on the following topic areas: (1) asset condition, (2) demand forecasts, (3) historical and projected performance, (4) planning and capital budgeting, and (5) operations and maintenance practices and budgets (2017-2018).
Independent Technical Review and Assessment of the Transmission and Distribution Assets and Operations of an Electric Utility Company. Confidential Client. USA. Provided independent technical and environmental consulting services to support a confidential client in its investigation into a potential investment involving an electricity utility in the USA. The utility company provides service to approximately half a million electric customers in the northwestern region of the country. The review focused on the following topic areas: (1) asset condition, (2) demand forecasts, (3) historical and projected performance, (4) planning and capital budgeting, (5) operations and maintenance practices and budgets, and (6) environment, health, and safety (2017).
Management and Operational Audit of the Electricity Efficiency Improvement Fund (EEIF). Office of Utilities Regulation (OUR). Jamaica. Leader of a team engaged by the OUR to conduct an audit of the EEIF and its corresponding programs in order to: (i) assess whether it was achieving its loss reduction objectives to date; (ii) determine how well it was being managed and operated; and (iii) examine its administration, including OpEx, CapEx, and management of the acquired assets (including the Automated Metering Infrastructure and its revenue assurance technologies). We also proposed possible improvements to the management and implementation of the EEIF programs and projects to reduce electricity losses (2017).
Transaction Advisory Services for the Tunisia-Italy Electricity Undersea Interconnection. World Bank and Global Infrastructure Facility (GIF). Tunisia and Italy. Worked with Castalia as part of a team engaged by the World Bank and the GIF to advise on the optimal institutional and contractual structure and financing terms for the proposed Tunisia-Italy Interconnector (TII), a high-voltage direct-current (HVDC) subsea transmission link between Tunisia and Italy. We reviewed the technical studies completed and advised on further work that will be required. The team also recommended a potential high-level transaction design for the management and financial arrangements of the project (2017).
Linking Up: Public-Private Partnerships in Power Transmission in Africa. World Bank. Africa. Worked with Castalia as part of a team that was engaged by the World Bank to examine global experiences in private sector-led investments (such as public-private partnerships, PPPs) in transmission and their applicability within the Sub-Saharan African (SSA) context. The overall objective of the study was to help mobilize private capital for greenfield power transmission investments (IPTs) in Africa. We reviewed global case studies (with a focus on Brazil, Chile, Peru, India, and the Philippines), assessed the level of private sector participation in transmission in Africa, and described the challenges and opportunities of IPT development in Africa. We also made recommendations to policy-makers on ways to increase private sector participation in transmission and a pipeline of transmission projects to be procured in SSA (2016-2017).
Independent Technical Review and Assessment of the Transmission Interconnection of the CHP5 Coal Fired Power Project. Confidential Client. Mongolia. Conducted an independent technical review and assessment of the proposed electrical interconnection plans of the approximately 417 MW CHP5 power plant to the bulk transmission system of Mongolia. The review focused on the following topic areas: (1) plans for substation and transmission line facilities, adequacy of contractual arrangement, rights of way, and related costs necessary to ensure the interconnection with the grid; (2) results of short circuit and protection coordination studies; (3) assessment of the capability of the transmission system to deliver the plant’s output; and (4) construction schedules (2016).
Assistance with the Transmission Interconnection of a Power Plant. PJM Region. Confidential Client. USA. Assisted a developer with the generation interconnection process of an approximately 1,050 MW CCGT (combined cycle) power plant in the PJM region in the USA. This involved providing the necessary inputs to the Feasibility Study, System Impact Study, and Facilities Study phases of the process, as well as providing general development support relative to the transmission interconnection of the power plant facility (2016).
Asset Performance Management. China Light & Power. Hong Kong. China. As part of a project implementing a monitoring and diagnostic system for the medium voltage (MV) and high voltage (HV) circuit breakers of China Light & Power (a utility that serves Hong Kong in the Republic of China), provided consultancy services for the development of a reliability centered asset management system (RCAM- Dynamics.) The scope of work included the development of a system that uses the data collected by the monitoring system to execute asset performance management. The associated tasks were: (i) data collection and analysis, (ii) Health Index calculation, (iii) Health Index correlation, (iv) Criticality Index determination, and (v) development of asset management strategies (2013-2014).
Technical & Operational Due Diligence of AES Sonel. Confidential Client (Prospective Investor). Cameroon. Independent technical due diligence review of the transmission & distribution assets and operations of AES Sonel, a vertically-integrated utility which provides electricity service to customers in the Republic of Cameroon in Africa. The due diligence review focused on the anticipated Capital Expenditures (CapEx) and Operational Expenditures (OpEx) of AES Sonel for the next five years, as well as on the current technical situation of the utility with particular emphasis on the utility’s performance relative to system losses, unserved energy, and operational efficiency (2013).
Technical Assessment of Options for the Interconnection between Uruguay and Brazil. Ministry of Industry, Energy and Mines (USTDA Funded). Uruguay and Brazil. Performed a technical assessment of a transmission interconnection between Uruguay and Brazil. The studyt involved: (1) a review of similar international interconnections, (2) a review of the legal, operational, and commercial framework associated with the interconnection project, (3) an identification and assessment of potential sources of financing, (4) a preliminary review and assessment of the environmental impacts of the project, (5) a preliminary review and assessment of the key host country developmental impacts, (6) the identification of potential U.S..-based sources of supply, (7) the development of a project implementation plan, and (8) the provision of system software, hardware, and related training (2007-2008).
Transmission Planning Study. Organismo Supervisor de la Inversión en Energía y Minería (“Osinergmin”). Peru. Assisted Osinergmin with the planning of the Peruvian transmission system for the period between 2006 and 2020. The scope included: (1) recommendation of new planning criteria, (2) steady-state and dynamic simulation studies for years 2006, 2010, 2015 and 2020 (including several expansion plans for the last three), (3) trade-off risk analysis for the feasible options (including analysis of scenarios, for different combinations of plans, uncertainties and attributes), (4) technical and economic feasibility analysis, and (5) recommendation of new standards on a common format (CIM/XML) for the system database (2006-2008).