Quick Links

ZE PowerGroup advocates a comprehensive holistic approach by merging the principles of sustainability into our daily operations as well as products and services we deliver.

---

News

Financial Analysis

INVESTING/ DIVESTING

• Sale of major power generation company: evaluated power generation company consisting of several plants, set of expansion rights, portfolio of long-tem contracts, and a financial holding, conducted risk analysis, as well as extensive scenario and sensitivity analysis.
• Purchase of major power generation company: evaluated a power generation company consisting of several generation plants, a set of expansion rights, and a portfolio of long-tem contracts, conducted strategy and financial review of the assets to determine if this was a viable acquisition for our client.
• Investment analysis of new hydro power plant construction: evaluated return-on-investment, NPV, and risks associated with the investment. Hydrology risks and possible plant construction delays were probabilistically simulated and evaluated.
• ROI and risks of hydro generation expansion: determined the rate of return and risk level associated with the expansion of a hydroelectric generation project. Analyzed water rights profiles and possible optimization of water flows for several hydro power plants located on the same river.
• Real option evaluations of natural gas-fired generation plants: evaluated natural gas-fired generation plants for both acquisition and construction purposes. Utilized real-option approach for calculation of financing decision NPV and IRR, based on the requirement of positive spark spread for profitable plant operations. Real-option calculations were based on ZE proprietary historical and Monte-Carlo simulations.

FINANCING OPTIONS

• Construction of power plant: analyzed construction loan, revolving line of credit, sculptured bonds, and real-return bonds, among other options. Models based on projected budget and accounts for cost overruns, inflations, construction delays, contractors’ penalties and bonuses. Analyzed optimized financing costs, given mid-term cash position restrictions.
• Acquisition of power plant: created an extensive financial model that considered internal resources, dividend policy, transactions with parent/holding/related companies, bank financing, and multiple options for long-term debt.

CONTRACTS

• Power purchase agreement analysis: conducted long-term power purchase agreement analysis for both buy and sell situations. Analysis compared PPA profitability against risks of market operations.
• Power procurement contract analysis: assessed client's power supply needs within the framework of its potential operational forecasts and against the supply characteristics of the MOU.
Evaluated alternative supplies and proposed optional contractual structures. Identified key areas of price and operational risk exposure and developed negotiation strategies.
• Evaluation of RFP for power purchase: presented an economic analysis of the RFP and supply options, developed bid recommendations, and provided the client with the ability to evaluate vendor bids.

MARKET AND RATE ANALYSIS

• Developed price and market review for a company entering western power market.
• Forecasted BPA rates for an industrial (DSI) client who was evaluating self-generation versus BPA rate options. We predicted the rate increase within a few percentage points.
• Effect of Asset Divestiture on Ratepayers: created a pro-forma financial model to calculate benefits to the existing rate base after the divestiture of the generation assets used to supply municipal ratepayers.
• Viability of transmission upgrade/purchases: analyzed the viability of purchasing an intertie line between two jurisdictions and the implicit business and regulatory considerations.

Terms of Use | Trademarks | Privacy Statement