The Nanogrids team are driven to drive the decision making process that gets projects happening. We will remain on the clients side throughout (the buy side) and our focus is wholly on speeding up decision making, reducing capital costs, contracting with suppliers to get guaranteed outcomes and then holding them to it.
Our project support role can be broken down into:
- Idea generation – This is generally a fast process (often done as a risk reward exercise) as we do not believe in formal audits and prefer to quickly get to an agreement on the best option to progress with you through a decision making process. We will need to review your energy contracts and have a structured discussion with your team.
- Project evaluation – This is done with a strong focus on energy markets, risk assessments and contracting options:
- Our biggest frustration with project assessments is the concept of using an average price of energy in assessments (there isn’t such a thing as energy can be very valuable or very cheap in the same day). So you need to model it, as it requires a non-linear equation.
- Our second biggest frustration is high discount rates applying to non risky investments or risk assessments that are used to favour the lazy option (the status quo) when risk may not be there
- Equally the above can be resolved with contracting solutions that put risk where it should be – with whoever understands and can manage it best
- Internal decision support – Our experience is that the individual drivers of key stakeholders and decision makers is as important in project development as the technical evaluation. We work with project development team to present and prosecute the case for projects as part of the internal process.
- The regulatory road will be a bumpy one as network regulations and investment incentive schemes compete with each other and drive your investment analysts nuts. So our market/regulatory support services are used to engage with external energy market stakeholders to reduce future risks.