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Energy Asset Development
& Operational Risk

Energy Asset Development

& Operational Risk

For energy & utility executives, the potential negative consequences of sub-optimal capital allocations are exponentially greater than the upside benefit of “prudent” ones. Exceeding ROIC guidance on $2B of new transmission assets will be more than nullified if an environmental disaster, deadly failure or protracted outage takes hold.

For energy & utility executives, the potential negative consequences of sub-optimal capital allocations are exponentially greater than the upside benefit of “prudent” ones.

Exceeding ROIC guidance on $2B of new transmission assets will be more than nullified if an environmental disaster, deadly failure or protracted outage takes hold.

10+

YEARS OF EXPERIENCE 

Too often, capital prioritization focuses on affirming the reason to fund capex projects, but does not rigorously assess the risk accepted from deferring other projects. 

We help energy project developers and operators understand with clarity both the value of funded projects and the risk of unfunded ones to afford a better decision-support framework.

Too often, capital prioritization focuses on affirming the reason to fund capex projects, but does not rigorously assess the risk accepted from deferring other projects. 

 

We help energy project developers and operators understand with clarity both the value of funded projects and the risk of unfunded ones to afford a better decision-support framework.

We help Developers:

Energy Project Development Risk Analysis and Advisory

Perform assessments of risks

and existing & needed mitigations to achieve objectives within applicable regulatory, contractual & compliance requirements

Quantify and communicate risk

In terms of potential variation in key business outcomes, rather than simply plotting risks on ambiguous heat maps

Stress-test critical outcomes

to inform contingency planning, such as relating to credit lines, regulatory compliance, and contractual obligations

We help Project Sponsors:

Project Execution Risk Control

Quantify the sensitivity

Of key milestones (permitting, schedule, cost) to disparate risks

Model changes in key

Project development targets as individual risk drivers – or a collection of drivers – emerge, are addressed or change

Create clarity of the risk

Tradeoffs between key objectives to inform critical-path priorities and mitigations needed to constrain outcomes to within acceptable limits

Operational Risk

Quantification and Mitigation Assessment

Translate risk assessments into articulations

Of performance risk around the metrics that matter, such as EForD, CAIDI, counterparty PFE, Revenue-at-Risk

Regular views of asset performance to provide an early-warning system of under–funded assets

Of event risks to inform exposure and identify pre-emptive, contingent mitigations

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