tneigroup.com

A specialist energy consultancy

Strategy and regulation

tneigroup.com

TNEI is an independent specialist energy consultancy providing technical, strategic, environmental and consenting

advice to organisations operating within the conventional and renewable energy sectors.

Strategy and regulation

Strategy and regulation

The challenges facing the electricity industry are significant. Regulations change constantly, as market conditions change and reforms are implemented. New technologies are introduced throughout the supply chain and each one brings new risks and opportunities. Meanwhile, policymakers worry about the energy trilemma: high security, low prices, and a sustainable future.

Businesses need to have the right plans in place to be successful and competitive in this ever-changing market and regulators need to stay one step ahead to make sure that, despite all of this complexity, consumers have reliable access to electricity at an appropriate cost.

TNEI provides clear advice on electricity industry strategy and regulation to help organisations overcome these challenges.

Our consultants draw on their comprehensive technical knowledge, significant project experience, and exceptional academic backgrounds to advise on everything from system operation to socio-economics. Our engineering expertise helps regulators, governments and network operators decide the future direction of the electricity industry. In turn, we use this knowledge to provide strategic advice to generators, suppliers and investors, helping them to remain competitive, now and in the future.

Our core expertise includes: • Designing and developing the technical aspects of energy

regulations and incentive mechanisms• Techno-economic modelling to support network planning and

operation• Analysing markets and supply chains for new and existing

technologies to identify barriers and opportunities for new entrants• Advising owners and lenders on regulations which could affect their

projects, and the strategies to adopt for minimising risk• Financial modelling of revenues, capital costs, and operational costs.

Our engineering expertise helps regulators, governments and network operators decide the future direction of the electricity industry.

Case studies Service: Major project needs case assessmentClient: Ofgem

TNEI provided Ofgem with technical support for their assessment of the needs case for the North West Coast Connections (NWCC) transmission project. We assessed National Grid’s optioneering process, the costs and assumptions that had been used in their cost benefit analysis, and the proposed delivery plan. We also evaluated whether the project would be suitable for tendering competitively to a “Competitively Appointed Transmission Owner”. This follows extensive advice and support given to Ofgem on their CATO proposals.

Service: Decision making for transmission investmentClient: EirGrid

TNEI, in collaboration with CEPA, developed a new process for EirGrid to follow when making transmission planning decisions. This was designed to be robust in the face of uncertainty, and transparent enough that internal and external stakeholders could understand it. The tools considered included performance matrices, cost benefit analyses, least-worst regrets analysis, and multi-criteria decision analysis methods such as decision trees. A ‘willingness to pay’ methodology was a key element of the final recommendation.

Service: Market analysis for innovative technologiesClient: Scottish Enterprise

TNEI undertook a detailed assessment of the market for Medium Voltage Direct Current (MVDC) technology. A thorough stakeholder engagement exercise was undertaken to assess opportunities for applying the technology and barriers to greater deployment. In addition, a number of implementation case studies were analysed in detail, and cost benefit analyses showed that MVDC technology could be a useful technology for distribution network reinforcement and offshore wind farm array design. This project led to the development of Scottish Power’s Angle-DC innovation project.

Service: Developing system services in IrelandClient: EirGrid

TNEI worked with Pöyry and DotEcon to develop the arrangements for the procurement of ancillary services in Ireland under the DS3 programme. TNEI led the design of the ‘scalars’. These will be applied to service prices in order to enhance service delivery, manage expenditure, and incentivise service provision during times of scarcity.

Key contacts

Gordon McFadzeanSenior Consultant

Gordon leads the delivery of projects relating to electricity strategy and regulation. He has experience of the network planning and system operation challenges facing the energy industry, particularly in the UK and Ireland, and regularly advises generation clients on strategies for getting connected to the grid. He has a strong technical background in power systems analysis and power systems modelling and a good understanding

of wholesale energy markets, ancillary service markets and network regulation, with a particular focus on use of system charging.

Dr Charlotte HigginsPrincipal Consultant

Charlotte has an extensive background in the energy sector with over 16 years of experience in the field of systems analysis, particularly for power systems applications. She has an excellent overview of technical, regulatory and economic considerations for the development of transmission and distribution networks, smart network innovations and renewable generation. Charlotte’s expertise is highly valued by the UK energy regulator and

network operators and she also applies her experience to opportunities for technical and commercial innovation in the rapidly evolving energy sector.

Get in touch

We are a specialist, independent company. That’s why we can offer a flexible, personal service and help our clients quickly and efficiently, without all the big corporate distractions.

But most of all, we love to solve problems.

For more information about our future networks services, please contact Gordon McFadzean; email: gordon.mcfadzean@tneigroup.com or call: +44 (0)161 233 4180.

Contact

We are a specialist, independent company. That’s why we can offer a flexible, personal service and help our clients quickly and efficiently, without all the big corporate distractions.

But most of all, we love to solve problems.

For more information about who we are and what we do, please contact: info@tneigroup.com

No part of this document may be reproduced in any form or by any means, electronic or mechanical, including photocopying or recording, without prior permission in writing from TNEI. All facts, figures, product and service information is correct at the time of print. All rights reserved. © TNEI Services Ltd 2017. Version: B2

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