Experts in energy Excellence in training - Cornwall Insight Insight... · 2019-12-16 · 600 +...

Experts in energyExcellence in training

Public training courses | Webinars I In-house training

• 600+ people attended public training courses

• 92% overall customer satisfaction score

• 60+ in-house training sessions delivered for 30+ customers from Government departments, regulators, energy suppliers, generators, law firms and trade associations

• 25 different topics covered across the energy value chain

A year in review

Your guide to training

Contents page

Why Cornwall Insight is the market leader in trainingLearning pathwaysBespoke trainingWebinarsOur clientsFoundation coursesIntroducing the GB energy marketsCompetitive consumer energyIntroducing the GB water marketsUnderstanding today's GB electricity marketIntermediate coursesUnderstanding today's GB gas marketMaximising the opportunity from the connected homeTomorrow's GB electricity markets: the journey to net zeroGB gas markets: from here to 2030Subsidised renewables: commercial optimisationIntroduction to gas and electricity wholesale tradingPPA: structures, terms and bankabilityFlexible smarter electricity networksFlexibility fundamentalsSubsidy-free renewables: commercialisation Advanced coursesBalancing Mechanism: commercial opportunitiesPractical energy risk management Project finance for energyIreland courses

45678

9101112

13141516171819202122

23242526

3

4

Why Cornwall Insight is the market leader in trainingWe offer a wide range of training courses on the energy and water markets, through multiple delivery channels, pitched at the right level to meet your needs.

Cornwall Insight’s service includes scheduled courses, training provided at customer premises and online knowledge sharing delivered via webinars or video conferencing for clients at multiple locations.

Our flexibility of delivering training in person or online, creating specific content and agreeing on comprehensive training packages are just some of the reasons we are regarded as market leaders.

Whether you need introductory training as part of the onboarding process for new staff, courses to aid learning and development as staff progress through their careers, or advanced and detailed sessions on the more complex areas of the market, we can help.

All presenters are enthusiastic and knowledgeable market practitioners in their areas of expertise. As a result, in 2018-19, we received an overall average quality rating of 92% across all our courses. Over the same period, we delivered over 150 days of training, and are the trusted trainer of choice for many industry participants.

We’re always here to discuss your needs and help shape the best training options for you and your company.

Why Cornwall Insight?

“Very beneficial and provided clarification of current knowledge. In addition, it provided a platform to enhance knowledge and understanding in further areas.”

– Evolve Analytics

“Very informative and useful. Cornwall Insight have a great source of knowledge delivered through engaging presentations.”

– Argent Related

Contact Ed Reed Head of Training 01603 542129 [email protected]

Learning pathwaysOur learning pathways enable delegates, line managers and HR departments to decide which course to book, based on a person's level of experience. The pathways are designed to help delegates plan a progressive approach to their training.

Learning pathways

Understanding today's

GB electricity market

Flexibility fundamentals

Maximising the opportunity from

the Connected Home

Balancing Mechanism: commercial

opportunities

Project finance for energy

Practical energy risk management

Introducing the GB energy markets

Flexible networks pathways

Understanding today's GB gas

market


Consumer markets pathways


Renewables and routes to market pathways

Understanding today's GB

electricity market

Competitive consumer energy

GB gas markets: from here to 2030

Tomorrow's GB electricity markets:

the journey to net zero

Maximising the opportunity from

the Connected Home


Understanding today's GB

electricty market

Introduction to gas and electricity

trading

Subsidised renewables: commercial optimisation

Subsidy-free renewables:

commercialisation

PPA: structures, terms and

bankability

Flexible smarter electricity networks



Key

Foundation

Intermediate

Advanced

5

Bespoke training

We create bespoke training sessions to meet your specific requirements. This could be through a mix of public training sessions, face-to-face teaching at your premises, online delivery, video-conferencing, white label or on any aspect of the commercial, policy and regulatory components of the energy or water value chain.

Our service includes agreeing topics and shaping agendas, developing new materials and ensuring the learning is pitched at the correct level for the attendees. Examples include:

Bespoke training

• Short introductory online training module as part of onboarding for new starters.

• Executive-level one-to-one session on the market landscape.

• Supplier compliance workshops – understanding rules for customer interactions.

• Detailed sessions on the GB industry governance codes.

• Video-conference knowledge sharing on market conditions for flexibility providers.

• Processes for market entry – onsite workshop.

For questions or help with choosing the right course

01603 542095 [email protected] cornwall-insight.com/training

6

Webinars

Our webinars are typically two hours and provide insight on specific topics that have an immediate commercial and strategic impact. The sessions combine focus on a specifc issue and our insight on how change may present challenges and opportunities to players across the changing value chain.

Webinars allow you to receive up to date information and analysis, and to ask our experts questions in real time. For those unable to make the live broadcast date, recordings of the webinars are available to stream at a later time. Our independent expertise allows us to select topical issues facing market players, and the delivery route ensures we can provide market-leading intelligence swiftly to help meet your business needs. Examples of recent topics include:

Webinars

• Balancing risk and reward in the Balancing Mechanism

• Commercial Dynamics of the LNG Market• Exploring the Impacts of Ofgem’s Network

Charging Reforms• Corporate PPAs – Current and Future

Commercial Considerations• Project TERRE - A New Market for Flexibility• REGOs - Values, Market Sentiment and

Outlook Webinar• EVs – Market Developments and Charging

Commercial

You will receive a soft copy of the presentation following the broadcast, and a write up of the questions asked during the broadcast. Keep up to date with our latest sessions at www.cornwall-insight.com/training

7

8

Supporting some of the world's leading energy companies

Our clients


Designed for• Those starting a career in the energy industry.• Those working in the energy industry who have limited

knowledge of gas and electricity markets.• People working for companies that support those in the

energy industry.

Areas of focus• Market design principles• Key industry players• Policy schemes• Cost drivers• Legal and regulatory frameworks

This course is essential for anyone needing a comprehensive grounding in the operation and make-up of the GB gas and electricity markets. The GB energy sector is one of the most complex and rapidly changing markets in the world. To successfully operate in the market, you need to understand its structure and how the parts fit together.

Introducing the GB Energy Market delivers learning on how the market structure encourages lower carbon emissions, good customer outcomes, and the reasons energy bills rise and fall.

Introduction and welcome

• Aim and objectives

Market basics and metrics

• Electricity and gas market structure• Key players in the market

○ Networks, the System Operator (SO) role, supply and generation

• Role of BEIS and Ofgem ○ Policy overview, regulation and licensing

Game: The energy market cost chainMarket design

• Design and operation of electricity and gas systems• The incentive to trade and balancing the system• Role of the SO

○ System management and balancing tools

Case study: 9 August 2019 blackoutCompetitive landscape (1): Retail supply

• Gas and electricity demand trends ○ Access to gas

• Supply markets ○ Customer segmentation and contract types ○ Established players, new entrants and exits

Discussion: What’s the future of supply?Competitive landscape (2): Wholesale generation and production

• Gas production ○ Where do we source our gas from?

• Electricity generation ○ Electricity generation mix ○ Embedded generation

Breaking down the energy cost chain

• Wholesale energy prices and cost drivers• Energy networks and policy costs

Game: Higher or lower – will the cost chain go or down and why?

The future

• Ongoing market changes ○ Price caps ○ Smart metering and their opportunities ○ Battery technologies – the role of batteries and electric

vehicles ○ Net zero implications

Discussion and conclusion

9

To book or further information 01603 542095 [email protected] cornwall-insight.com/training

Foundation course AgendaAgendaFoundation course

Competitive consumer energy

Designed for• Those new to the consumer energy markets and

energy retailing.• Those working for a supply company who want a

broader view of how they operate.• Those working in marketing, competitor analysis or

customer-facing aspects of consumer energy markets.• Investors and prospective new market entrants. • Local authorities involved in energy.

Areas of focus• The competitive consumer energy markets landscape• Sizing the markets• Entry and exit of energy suppliers• Routes to market• Future trends in flexibility and smart

The GB consumer energy markets have undergone profound changes over recent years, with record levels of new entrances, new business models emerging, and a spate of recent exits. Attendees will learn unique insights on the key trends in the gas and electricity consumer markets, covering both domestic (household) and non-domestic (business) sectors.

Using our market-leading knowledge and expertise in consumer energy markets, delegates will learn about supplier’s customer propositions, specialisms, market shares, sales channels, and the value-added services being offered including those associated with connected homes technologies and electric vehicles. We will also discuss the impact on price caps in the household market, the evolving regulatory landscape, and reasons behind exits.


• Aims and objectivesSizing the market

• What is an energy supplier and the supplier hub?• Market metrics – number of suppliers, consumers, volumeMarket entry and exit – competition in retail supply

• How did we get to competitive markets, and what does this mean for today?

• New entry over time by type-licensed supply vs ‘white-label’• Case studies of successful supplier entry and growth

○ Offerings, niches, differentiation, service levels etc.

• Looking at supplier exit and drivers in GB overtime• Case studies of supplier exits• Changes in regulations and licensing related to entry and exit

Supplier propositions

• Non-domestic market ○ SME, and Industrial and Commercial (I&C) supply

• Domestic market tariffs ○ Fixed/ variable, payment types and innovative tariffs

• Price cap ○ Why do we have one? ○ Who does it cover? ○ How are prices forecast to change?

Routes to market

• Customer switching and engagement levels • Domestic supplier routes to market

○ Price comparison websites, referral, face to face sales and telesales

• Non-domestic supplier routes to market ○ Role of brokers, public buying organisations (PBOs) and

other channels

Smart(er) meters

• Who’s who in the smart metering landscape ○ What are smart meters? ○ Meter operators, agents, DataCommsCo, Smart GB and

non-domestic rollout

• Timeline for completing rollout ○ Latest state of play

• Cost-benefit assessment for smart meters

Is the future electric – new supplier opportunities

• Electric vehicles – private and fleet considerations• From energy sales to energy services• Demand-side response and the rise of the ‘prosumer’


10



Introducing the GB water markets

The GB water markets differ substantially in England, Scotland and Wales. This one-day course provides an end-to-end overview of the water markets by introducing government policy goals and aspirations for the sector; and the key role of actors across the value chain, including regulatory bodies, market operators, wholesalers and retailers.

Delegates will learn about the state of the markets with insights on customer switching; complaints and awareness levels; and areas where challenges remain. The session concludes by exploring the policy and commercial opportunities for the future, such as the potential for new markets to be created within the sector, and imperatives to ensure water resilience and affordability.



Setting the scene

• Water infrastructure and the value chain• Market players• Legislative framework• A brief history• Key sector metrics

Water policy

• Overview of UK water policy• Policy and regulatory authorities – Defra, Ofwat, CCW, DWI,

MoSL and CMA etc.• Role of the water wholesaler as deliverer of policy aspirations

○ What they do and do not do ○ Map of wholesalers

Price review

• Overview of price reviews• PR19 – key themes, incentives and performance• Revenues• Charging users

Retail competition

• Timeline for water market opening – referencing other utility markets

○ Differences between England, Scotland and Wales ○ What customers wanted from retail markets

• Linkages between wholesale and retail markets ○ Customer propositions and offers ○ Self-supply

• Who are the retailers and what are their obligations and duties?

State of the markets

• Customer switching and awareness• Complaints and service levels• Market consolidation• Challenges – data, metering and awareness

Future opportunities

• Commercial ○ New markets – wholesale trading, sludge, direct

procurement ○ Expanding retail markets ○ Harmonising arrangements across GB

• Policy ○ Affordability ○ Resilience ○ Environmental protection ○ The political agenda


Designed for• Water retailers and wholesalers needing an end-to-end

overview of the sector• Business customers and their representatives• Advisors, including lawyers, investors• Regulators, market operators and consumer representatives

Areas of focus• Structure of the value chain and how it differs across GB• Current retail market competitive landscape • Commercial and policy challenges and opportunities for the

sector

11



Understanding today’s GB electricity marketGetting to grips with the GB electricity market can be a daunting task. There is a wealth of information available, but recognising how the pieces fit together can be tough. Understanding today’s GB electricity market will provide you with a comprehensive overview of the electricity sector value chain and the rules and incentives that underpin the commercial landscape.



Market basics and metrics

• Electricity and gas market structure

• Key players in the market

○ Networks, the System Operator (SO) role, supply and generation

• Role of BEIS and Ofgem

○ Policy overview, regulation and licensing

• The energy market cost chain

Market design

• Design and operation of electricity and gas systems

• The incentive to trade and balancing the system

• Role of the SO

○ System management and balancing toolsCompetitive landscape (1): Retail supply

• Gas and electricity demand trends

○ Access to gas

• Supply markets

○ Customer segmentation and contract types ○ The Big Six and vertical integration

Competitive landscape (2): Wholesale generation and production

• Gas production

○ Where do we source our gas from?

• Electricity generation

○ Electricity generation mix ○ Embedded generation ○ Key trend: the impact of renewables

Exercise: Wholesale market trading and price drivers. Attendees will be split into groups to analyse price drivers and predict outturn market pricesBreaking down the energy cost chain

• The impact of wholesale prices• Network and policy costs

The future

• Ongoing market changes ○ Price caps ○ Half-hourly (HH) settlement and smart metering ○ Battery technologies – the role of batteries and electric

vehicles ○ Changing generation mix

Exercise: How might regulatory and technology changes impact different market participants?Discussion and conclusion

Designed for• Those relatively new to the industry (1-5 years experience)

looking for a deeper understanding.• Those working in the energy industry who have limited

knowledge of electricity markets.• Those working for companies that support the energy

industry.

Areas of focus• Market design and frameworks• Interactions between wholesale and retail markets• System balancing and trading principles• Political influences• Legal and regulatory frameworks• Costs and charges• Possible future directions for the industry

12



Understanding today’s GB gas market



knowledge of gas markets.• Those working for companies that support the energy

industry.

Areas of focus• Market design and frameworks• System balancing and gas trading principles• Interlinks with other markets• Legal and regulatory frameworks• Political influences• Costs and charges• Possible future directions for the industry

Great Britain (GB) has one of most the liberalised gas markets in the world. To ensure the market can function effectively, a number of complex rules and processes support it. This course offers you extensive information on the current market landscape, helping you get to grips with the information necessary to operate in the market and to understand the role of gas in the decarbonising world.

Our experts explain the market design, the role of gas shippers, how the network (transportation) charges flow to users, and the outlook for the market as net zero targets are worked through into policy.



Gas market overview

• Market structure• Key metrics – demand and supply trends• Key players – producers, networks, shippers and suppliers

Game: What are the costs of the elements of the consumer’s gas bill? Market design

• Explaining the Uniformed Network Code (UNC) and industry roles

• Key role of the shipper• Balancing the gas system

○ Trading options; over-the-counter (OTC), On-the-day Commodity Market (OCM) and bilateral

• Imbalance settlement

Gas allocation and settlement

• Product classes• Implications for the gas user of product classes• Unidentified Gas (UIG)Gas price drivers

• Conditions and characteristics that underpin gas prices • Recent price trends

Exercise: Trading gas – buy now or later?

Network charging and connections

• Ownership and price controls• Transmission charging • Distribution charging

○ Typical charges and cost flow to consumer types ○ Ratchet

• Connection considerationsHorizon scanning

• Net zero scenarios for gas ○ Heat ○ Power generation ○ Energy efficiency


13

AgendaAgendaIntermediate course


Maximising the opportunity from the connected HomeAs householders are offered an increasing array of ‘smart’ technologies for the home, this one-day training session will focus on how Connected Homes opportunities can be maximised. Our experts will present four Connected Homes product case studies to explain the opportunities, processes and risks presented today and in the future as market rules and policy are refined to deliver net zero targets.

We will set out how consumer offers can be realised by detailing typical installations, measurement and metering needs, consumer protection considerations, consumer benefits and value for parties across the value chain.



What’s the push and pull for Connected Homes?

• Net zero policy – push• Consumer aspiration – pull• Need for traditional supply models to evolve • What is a Connected Home?

○ Within the home – smart appliances ○ Beyond the home – aggregation, flex, DSR and next-

generation intermediaries (NGIs)What are the opportunities?

• Within the home ○ Convenience ○ Greater data/ control to enable personalised services

• Beyond the home ○ Accessing flexibility revenues

Exercise: What are the barriers?The tech-savvy 'prosumer' – onsite generation, storage and EVtypical installations

• What are consumer protections/ rights considerations?• Where is the value?• What needs to be done to bring the offer to market?• What is changing that could benefit or undermine the offering?

Smart assisted living – within the home monitoring and control

• Typical installations• What are consumer protections/ rights considerations?• Where is the value?• What needs to be done to bring the offer to market?• What is changing that could benefit or undermine the offering?

Home-to-grid – aggregating tech-savvy 'prosumers'


Grid-to-home – maximising DSR



Designed for• Consumer tech market participants• Energy suppliers • Consumer representatives and regulators • Innovators

Areas of focusCase studies will cover:• The tech-savvy ‘prosumer’• Smart assisted living, connected

home aggregation to provide network flexibility

• Within the home demand-side response (DSR) and control

14



Tomorrow’s GB electricity markets: the journey to net zero

Designed for• Those in the electricity sector needing to understand

how market change is likely to impact on strategic and commercial conditions.

• Those working for companies that support those in the energy industry and needing a grounding in how the sector is likely to evolve and implications for those currently active in the market.

Areas of focus• Net zero emission policy and how this relates to the

electricity sector• Future supply and demand scenarios• Known change programmes for the sector and their likely

impacts• Detailed insight on the pros and cons of alternative

approaches to encourage investment in new capacity• Consequences of radically changing regulatory

arrangements in the supply market

The electricity sector must undergo radical changes if net zero emission targets are to be met in just over 30 years. This one-day training session will unpack scenarios of future generation and demand to give expert insight on the challenges these present for market and regulatory arrangements.

Our experts will detail current policy and regulatory change programmes to move the market towards lower emissions in the coming years and use group exercises to highlight the trade-offs required in the longer-term to deliver new investment, fair consumer markets and adequate protection of vulnerable consumers.

Throughout the session, we will be setting out how market conditions may change for existing parties, be they suppliers, network companies, flexibility providers or generators.



Net zero policy and the GB electricity sector

• Policies to get us to net zero emissions• What does this mean for the GB electricity sector?

○ Generation and interconnection – different technologies ○ Demand – greater electrification ○ Storage and flexibility – smarter networks and

'prosumers'

Exercise: What does this mean for the consumer and wholesale markets? Future scenarios

• Generation, transmission and interconnection ○ 2030/ 2040/ 2050 ○ Developing new assets – wholesale power, capacity

payments, system services and regulated assets □ Cannibalisation, the security of non-market

revenues, and government intervention

Future scenarios

• Demand, distribution and flexibility ○ 2030/ 2040/ 2050 ○ Moving to the service model – impacts of greater

electrification, ‘presumed open’ data, and the 'prosumer' □ End of ‘supplier-hub’, service bundling, customer

protection and engagement rules

Exercise 1Group exercise to determine the optimal future generation mix to meet emission targets and costs controls

Exercise 2Group exercise to determine the future demand scenarios to meet affordability and fairness considerations Summary

• The policy and regulatory timeline for change to deliver the net zero GB electricity sector

• Insights on the pros and cons of scenarios on market players




15

GB gas markets: from here to 2030

Designed for• Those in the gas sector needing to understand how market

change is likely to impact on strategic and commercial conditions.

• Those working for companies that support those in the energy industry and needing a grounding in how the sector is likely to evolve and implications for those currently active in the market.

Areas of focus• Net zero emission policy and how this relates to the gas

sector.• Future supply and demand scenarios • Known change programmes for the sector and their likely

impacts• Insights on the costs, viability and required market

frameworks for hydrogen, biogas, electrification, and Carbon Capture Usage and Storage

• Future use of gas networks

The net zero emission target and future energy supply and demand scenarios all point to the future of the GB gas sector being very uncertain. From being a fuel that provides most of our heating requirements and the single largest share of electricity generation, the future for the sector presents considerable opportunities and challenges.

This one-day training session will unpack the latest on policy developments that impact on the gas market and how market conditions may change for existing parties, be they suppliers, shippers, or network companies.

Attendees will participate in group exercises to highlight the trade-offs required in the longer-term to deliver carbon emission reductions from gas usage at reasonable costs and the market and existing gas network implications of two future gas scenarios with a higher or low/no gas consumption.



Net zero policy and the GB gas sector

• Policies to get us to net zero emissions• The GB gas sector today

○ Heat – space and water, industrial processes and energy efficiency

○ Power generation – baseload and peaking plant ○ Network assets – size and asset value

• Are current market arrangements fit for purpose?

Exercise: What are the immediate challenges for the gas sector? Alternative and complementary fuels to gas

• What are they? When could they be used? How would they be used?

○ Hydrogen ○ Biogas ○ Electrification ○ Carbon capture utilisation and storage

• Scenarios to 2050 ○ What are the key decisions on the path to 2050? ○ Gas sector views ○ Climate Change Committee and National Grid’s Future

Energy Scenarios

Exercise 1Group exercise to determine the optimal future for gas to meet emission targets and costs controlsMarket implications

• Latest insights on the costs, viability, and required market frameworks for:

○ Hydrogen ○ Biogas ○ Electrification ○ Carbon capture utilisation and storage

Exercise 2Group exercise to unpack the market and existing gas network implications of two future gas scenarios

1. ‘Higher gas usage’ – blending and substituting gas2. ‘Low/no gas usage’ – electrification of heat and transport

Who pays, how is the market regulated, the role of the market and government intervention

• Policy and regulatory timeline for change to gas sector-driven by net zero policy

• Where are the gaps and how should they be filled?




16

Subsidised renewables: commercial optimisation

Designed for• Traders and operators of subsidised renewables • Developers and investors • Electricity suppliers• Aggregators and offtakers• Brokers

Areas of focus• RO, FiT and CfD scheme design• Subsidised capacity roll-out profile • How and when generators receive support revenues • Process for collecting costs from suppliers• Process for non-payment (mutualisation)• Future developments for the existing schemes

The majority of the 40GW or so of renewables capacity currently installed in GB is operating under a support scheme, despite subsidy for new developments only being available for select less-established technologies. Those renewables with subsidy will continue to receive support until the later part of the 2020s at the earliest, and the majority well into the 2030s.

This new one-day course explains the operation of the Renewables Obligation (RO), the Feed-in Tariff (FiT), and Contracts for Difference (CfD) schemes and the value available for generators now and in the future. Our experts will also detail how costs are recovered from consumers via their electricity suppliers and give insights on how policy and regulatory changes may impact on these arrangements.



Renewables policy overview

• Why have we historically supported renewables? • Policy overview and aims• Levelised Cost of Energy trends (LCoE)• Uptake trends and where we are today

Renewables Obligation

• RO overview and structure• Banding• Setting obligation levels• Supplier obligations and timings• How to calculate renewable obligation certificate (ROC) values• How ROCs are typically traded• Scheme closure and future

Feed-in Tariff

• FiT scheme overview ○ Eligible technologies, generation tariffs and export tariffs

• Uptake and trends• Supplier costs and calculating levelisation• How FiT generators typically trade• Scheme changes and future

Contracts for Difference

• Scheme overview and key differences with the RO and FiT• Key scheme organisations – roll of LCCC, BEIS and National

Grid• Auction design and parameters

Auction results and trends

• Supplier obligations• Other revenues and routes to market• Overview of renewable energy guarantees of origins (REGOs)

and embedded benefits• Routes to market and trading options for RO, FiT and CfD

generators• How do generators typically achieve value?

○ Power purchase agreements (PPAs) and certificate trading

PPA Dragon’s Den exercise : attendees will split into groups and assess potential PPAs for RO, FiT and CfD generators and “invest” into the best optionsDiscussion and conclusion

• How do generators earn the best value across the market? • How do suppliers ensure competitiveness?• Scheme changes and the future

○ Co-location ○ Smart export guarantee (SEG) ○ Future CfD



17

Introduction to gas and electricity wholesale trading

Designed for• Energy traders and pricing analysts• Investors and developers needing an understanding of how

energy is valued and traded• Offtakers and electricity suppliers• Legal advisors

Areas of focus• Overall market design• Wholesale price trends and why parties are incentivised to

trade• Overview of the key players in traded markets • Understanding routes to market• Typical trading “products” and how participants use them• Risk management

Wholesale trading is at the heart of the GB market structure. As wholesale markets become more volatile with a changing generation mix and the impacts of international markets, there has never been a more important time to understand the fundamentals that underpin trading rules and the commercial behaviours that players in the market take.

This course explains how trading strategies are shaped to mitigate risks and the range of contractual routes to execute trades. Our experts present example trading strategies for different types of market participant and discuss the emerging market and regulatory changes and trends.



Setting the scene

• Overview of wholesale energy markets in GB ○ Market structure and fundamentals ○ Role of trading and avoiding imbalance ○ Licensing and regulation

• State of the market ○ Trading parties ○ Price drivers and recent trends

Hedging strategies and market risk

• Hedging concepts• Types of risk and mitigation actions

○ Budget risk ○ Credit risk ○ Volume risk ○ Liquidity risk

Risk management and trade execution

• Risk management and trading operation ○ Policy & infrastructure

• Trade execution strategies ○ Delta hedging and other trading techniques

Routes to market

• Over-the-counter (OTC) contracts• Exchanges and market coupling• Bilateral contracts – structured deals, collateral-free trading• Power purchase agreements (PPAs)

Example trading strategies

• Vertically integrated utilities• Merchant generators• Embedded generators• Independent suppliers

Emerging trends and future trading arrangements

• Emerging trends in power and gas ○ Post gate closure trading ○ Industry wide half-hourly (HH) settlement ○ Virtual power plants and battery storage

• Regulatory changes ○ integrated European markets ○ Brexit




18

PPA: structures, terms and bankability

Designed for• Project developers and investors• Flexible generation, storage and renewables generators• Offtakers and electricity suppliers• Legal advisors

Areas of focus• Reasons for choosing a PPA as a route to market• Key PPA terms and pricing schedules• Offtaker market landscape• Corporate, ‘flexi’, and renewables PPAs

Over 30GW of renewables and flexible generation find their way to market via a Power Purchase Agreements (PPAs). Although technologies as diverse as rooftop solar, fuelled peaking plants, and co-location of storage and generation have offtake arrangements to secure revenue, the PPA contracts are of a broadly similar structure.

This session explains key PPA terms and their bankability and interaction with financing structures. Our in-depth knowledge of the PPA market is used to detail wholesale market, subsidy scheme and embedded benefit pricing structures and how these are typically reflected for different technologies. We also explore the PPA market by looking at the different products on offer now and the emergence of corporate PPAs.


PPA market setting and context• Routes to market in GB

○ Self-trading ○ Supply ○ PPA

• why generators choose PPAs? ○ Funding structures and project financing ○ Licensing arrangements and requirement for trading and

balancing support

• Types of PPA ○ Renewables and flexible assets

PPA terms

• Key terms and bankability ○ Off-taker risk mitigation - commissioning, outages,

volume tolerances

• Interactions with financing structures• PPA execution – bilateral, tendered and auction etc.• PPA contract length

PPA pricing schedules

• Pricing elements ○ Wholesale pricing – fixed, flexi and other ○ Subsidy revenue – renewable obligation certificates

(ROCs), Feed-in Tariff (FITs) and contracts for difference (CfD)

○ Embedded benefits

• Additional considerations ○ Balancing services contracts ○ Capacity Market agreements

• Overview of pricing terms by technology (renewables vs. flexible assets) and capacity

Exercise – assessing PPAsMarket landscape

• Offtakers ○ Specialisms and typical offers

• The rise of Corporate PPAs (CPPA) ○ Multi-asset sites ○ Co-location

• Future outlook ○ Scale of generation required ○ Wholesale price cannibalisation ○ Smart energy guarantee (SEG) (<5MW) ○ Prospects for support for larger generation




19

Flexible smarter electricity networks



knowledge of gas markets.• People working for companies that support those in the

energy industry.

Areas of focus• Market design and frameworks• System balancing and gas trading principles• Interlinks with other markets• Legal and regulatory frameworks• Political influences• Costs and charges• Possible future directions for the industry

Approaches to charging for, connecting to, and providing flexibility to local electricity distribution networks is changing. This new one-day course will ensure you are up to date with the latest policy and regulatory developments that can impact on the commercial operation of existing or planned network connections – be it generation, storage, consumption or demand-side response (DSR) initiatives.

Our experts will clearly explain the industry-led developments too, and using case studies will set out the how local distribution network flexibility services can be accessed today and the scale of the opportunity in the future as the frameworks to move towards smarter and more flexible networks beds in.



20


• Aim and objectives• Setting the scene • Energy White Paper • Upgrading our energy system – smart systems and flexibility

plan• The scale of the challenge

○ Scenarios for future network use – generation, storage, electrification of heat and transport, DSR

○ Innovation opportunities and reducing costs

Latest on regulatory and policy developments• Overview of deficits with current arrangements – charging,

connections, flexibility services• Ofgem’s network charging reviews

○ Targeted charging review (TCR) and forward-looking and network access

• Electric vehicle ‘smart charging’• RIIO – 2

○ Latest on RIIO-T2, emerging thoughts on RIIO-ED2• Regulatory principles for the distribution system operator

(DSO)

Latest on industry developments• Open Networks Project • Network Innovation Competitions • Active Network Management and flexible connections

○ Distribution Network Owner (DNO) current activity • Opening up ‘Energy System Data’• Transmission connections – tertiary windings• The scale of the current opportunity – value and MWs

Case studies

• How to access flex services, what is the service being offered, for how long and what is the value?

○ Gas peaking plant ○ Unsubsidised PV ○ Battery storage (transmission connected)

• Behind the meter storage

Where’s the market going?

• Timeline for ‘known’ changes• The scale of likely opportunity over the coming years

○ Baseline network reinforcement costs ○ Regional opportunities


Flexibility fundamentals

As our electricity system continues to decarbonise and adapt to the electrification of heat and transport, new revenues and opportunities exist for flexibility providers. This one-day course introduces the key principles, concepts, and requirements for the procuring and provision of services to ensure the electricity system is sufficiently flexible to ensure the security of supply on the electricity system.

Our experts will demystify the role of the Electricity System Operator and the specific services it procures, how local networks are transitioning to Distribution System Operators (DSO), and the changing landscape for flexibility providers.



Defining flexibility

• What do we mean by flexibility?• Why do we need flexibility?

Exercise: What forms of flexibility are available today?Flexibility on the transmission system

• National Grid’s role as the Electricity System Operator • The Balancing Mechanism• Balancing Services contractsOR

• Energy balancing• Frequency• Reserve• Constraints• Voltage control• What value can be achieved?

Case study: 9 August blackout – what happened?Flexibility on the distribution system

• Transitioning from Distribution Network Owner (DNOs) to DSOs

• Open Networks Project – integrated system planning• DNOs latest activities – commercial trials and partnerships

Exercise: What technologies can provide which flexibility?

Challenges and opportunities

• Government policy • Market regulations• Technology advances

Discussion and conclusionDesigned for• Energy suppliers• Energy generators• Storage and demand-side response (DSR) service providers• Investors and developers

Areas of focus• Flexibility and the scale of the opportunity• Different types of flexibility required• How different technologies can offer flexibility • Future challenges and opportunities• Case studies and exercises



21

Subsidy-free renewables: commercialisation

Designed for• Project developers and investors• Storage and renewables generators• Offtakers and electricity suppliers• Strategic managers

Areas of focus• Subsidy-free business models and current landscape• Barriers to subsidy-free developments• Wholesale, network, balancing and other revenue streams• Case studies• Future revenue landscape

This is essential learning to understand the commercial landscape for subsidy-free renewables. Our industry experts will set out the scale of the investment challenge, in terms of the amount of new renewables capacity required to meet a net zero emissions target for 2050 and the business models in play today that have called forward new developments. We will also discuss barriers to subsidy-free deployment and detail the revenue streams that can be accessed to build the business case for subsidy-free assets. Case studies to illustrate revenue streams are:• Transmission connected solar (100MW)• Co-located wind and storage (50MW wind + 20

MW battery)• Behind the meter storage (2MW battery)• Onshore wind (25MW)

The session will conclude with the latest insights on the outlook for wholesale electricity prices, Ofgem’s review of network charging arrangements, accessing ‘balancing’ revenues, and energy policy developments.



Setting out the scale of the challenge

• Requirement for new generation to 2050 in a net zero world ○ Electricity demand to 2050

• Putting GB’s needs in an international context• Technology costs – LCoE trends

Subsidy free business models

• What is subsidy-free?• Status of ‘subsidy-free’ developments in GB• Innovations

○ Virtual Power Plants (VPPs) ○ Corporate PPA’s/ utility PPAs ○ Private wire ○ Co-location (storage, generation and demand)

Poll: Which innovations will be enduring?Barriers to developments

• The scale of bankable buying power• Merchant risk• Rate of returnDiscussion on risks and opportunitiesThe revenue landscape – accessing or avoiding

• Wholesale electricity ○ Volatility, cannibalisation and accessing markets

• Network charges ○ Connecting at the transmission network vs distribution

network ○ Embedded benefits – predictability, certainty, access

Balancing ○ System imbalance prices, Balancing Mechanism,

balancing services, DNO services

• Capacity market ○ Value, access and de-rating

• Green certificates ○ REGOs

Case studies - who can access what and when?

• Transmission connected solar (100MW)• Co-located wind and storage (50MW wind + 20 MW battery)• Behind the meter storage (2MW battery)• Onshore wind (25MW)

Future revenue landscape

• Cornwall Insight’s Benchmark Power Curve (BPC) forecasts• Ofgem’s network charging review• Accessing ‘balancing’ revenues – DSO, TERRE and ‘Power

Available’• Policy direction




22

Balancing Mechanism: commercial opportunities

Designed for• Generator and storage asset operators• Electricity suppliers• Developers and investors • Aggregators and offtakers

Areas of focus• Role of the ESO• Walkthrough of the Balancing Mechanism• Latest on Project TERRE• Balancing Services contracts • Single Imbalance Price (SIP)

creation and settlement

This one-day course explains the detailed operation of the Balancing Mechanism – the tool used by the Electricity System Operator (ESO) to help manage GB electricity supply and demand. Our experts will explain the processes, challenges, and revenues for parties participating in the Balancing Mechanism. The session also introduces the changing landscape for Balancing Services contracts and how all balancing charges incurred by the ESO are recovered via Balancing Services Use of System (BSUoS) and imbalance charges via the electricity settlement process.


• Aims and objectives

Market design and regulatory framework

• BETTA design principles and framework• Governance and regulation overview• Policy objectives

The GB electricity system operator

• Definitions• National Grid’s role as the electricity system operator• Regulation• System Operator (SO) incentives

System balancing

• Balancing the system• Balancing services• Costs• Charging BSUoS

Balancing Mechanism

• A “residual” pool• Process walk-through• Project TERRE• Wider access to the Balancing Mechanism • Headline statistics and trends

Cash-out and settlement

• Principles of single cash-out pricing “P305”• ‘NIV chasing’• “Beer-fund”• Settlement • Market-wide half-hourly settlement and other future changes


23

AgendaAgendaAdvanced course



Designed for• Strategy managers • Traders and trading analysts• Generators and developers• Suppliers• Pricing analysts• Business development managers

Areas of focus• Approaches to risk management• Wholesale energy marker risks, quantification, management

tools and portfolios with optionality • Illustration and implementing Value at Risk• Case study to work through applicable risks, risk

management and frameworks, and risk management in action activity

This in-depth training session has been developed by experts with years of experience in managing risks within the energy sector. This advanced-level training session will explain in detail the methods used to identify a range of risks faced by commercial entities (such as market, political, regulatory and systemic risks) and approaches to manage and mitigate them. We look at ways to quantify risk, including an overview of value at risk and, as with other elements of the course, reinforcing learning with exercises. Case studies are used to show how different actors in the value chain typically approach risk management.

AgendaIntroduction and welcome


Why manage risk? Setting the scene

What risks?

• Risk identification/sources/affected parties

Approach to risk management

• Organisational approach, risk management cycle• Characterising/ quantifying risks• Reporting and risk limits• Implementing risk management

Political/ regulatory risk

Wholesale energy market risks

• Energy market and price risk• Energy market credit risk

Wholesale market price risk

• Quantification• Risk management tools• Approaches to hedging• Portfolios with optionality

Value at Risk (VaR)

• Introduction• Calculating VaR• Implementing VaR for real portfolios

Energy market volumetric risk

• Volume risk• Domestic gas supply example and risk management toolsCase study (large consumer/flexible generator/independent supplier)

• Background• Applicable risks• Approach to risk management/framework• Risk management in action activity

Systemic risk


Advanced course

24



Securing finance is a critical step in the path to project commercialisation. This advanced-level training session will help you understand how equity investors and debt providers assess, quantify and translate risks and opportunities into financing structures for energy projects.

Our experts will explain how energy project risks are identified and categorised and how finance is structured. Exercises and case studies are used to show the scale of the investment challenge in the GB energy sector and contracts and financing trade-offs.



First-principles of project finance

• Types of finance – covering ○ Corporate versus project finance ○ Non-recourse / limited recourse financing ○ Basic forms of debt and equity

• Project finance hurdle rates – covering ○ Components of debt pricing ○ Different measures of equity return ○ NPV, WACC, hurdle rates – considerations and drivers

• The typical energy project finance funding contract structure

Risk in energy project finance

• Energy project risks• Categories of risks in energy projects• Establishing the probability and quantum of risks • Interactive session – What do we mean by construction risks

and power price risks, and how are they dealt with?• A summary of the principal sources of value

○ Wholesale market fundamentals ○ Strengths and weaknesses of policy support types ○ Balancing services and network benefits

Financial structuring

• Lender and debt objectives• Debt sizing, priority cash flow and financial covenants• Drivers of debt sizing and financial covenant setting• The impact of debt structure on equity returns• The loan agreement and security package

Module 2: The energy finance landscape

• The scale of the investment challenge in the UK energy and the performance to date

• Who is investing in what?• The main debt actors, their risk appetite, and activities• The main equity actors, their risk appetite, and activities• Case studies from different energy projects

Exercise: Energy Dragons’ Den

Three investment opportunities will be showcased with each team determining whether they are ‘in’ or ‘out’ based on their understanding of the investment appetite of their allocated category

Module 3: Contracts and financing trade-offs

• Risk pass through – the approach to risk allocation that underpins project contract negotiation

• Construction contract key terms• Operating contract key terms

Interactive PPA Case Study – The objective of the SPV and the contractor, how they are balanced, and contract considerations


Designed for• Those looking to increase their knowledge of energy

investment trends and practice.• Those requiring a more in-depth knowledge of how investors

in energy projects evaluate, account for and manage risks.• Those directly involved in the negotiation of project and

financial documentation.• Practitioners engaged directly or indirectly in financial

modelling energy investment.

Areas of focus• Types of finance, funding and contract structure• Categories of risk in energy projects• Due diligence• Capacity, output and availability as currencies• Wholesale market fundamentals• Categories of revenue

AgendaAgendaAdvanced course

25


Ireland courses

Cornwall Insight Ireland training courses and webinars

26

Cornwall Insight Ireland has developed a unique position in the Irish and Northern Irish energy market, providing expert research, insight and intelligence to existing and potential market participants and their advisors.

We have used this knowledge to develop a comprehensive, quality training programme that will help you and your team build capability around specific topics and benefit from the very latest analysis and market intelligence.

With experienced expert trainers and a schedule of courses covering the market from generation assets to the end customer, we have a course designed for every energy professional, from industry beginners through to the most technically advanced specialists. In response to customer demand, we can also deliver these courses in house and online, or develop a bespoke service tailored to your specific needs.

For more information on our training courses, please visit www.cornwall-insight.ie/training

cornwall-insight.com/training

Level 3, The Union Building51 - 59 Rose Lane, Norwich, Norfolk NR1 1BY

T 01603 604400E [email protected]

W cornwall-insight.com

Experts in energy Excellence in training - Cornwall Insight Insight... · 2019-12-16 · 600 +...

Documents

Transcript of Experts in energy Excellence in training - Cornwall Insight Insight... · 2019-12-16 · 600 +...