Commercial Due Diligence – LDES (Long Duration Energy Storage)

A leading international energy company, focused on long-term value in a low-carbon future, appointed us to provide commercial due diligence on LDES assets in GB. Our detailed market analysis and revenue projections enabled the client to submit an offer for the assets.

The background

The client, a leading international energy company, is committed to long-term value creation in a low-carbon future. It is looking to diversify its portfolio to include low-carbon generation assets in GB.

What the client needed and their key question(s)

The client was interested in appointing a market advisor in its attempt to purchase LDES assets in GB. They approached LCP Delta given our expertise in this area following work we had completed for the UK government exploring this particular issue. Results from our analysis would be used in the financial evaluation of the assets under consideration.

The client required a detailed report covering two key areas:

1. Market and System Background – An overview of the GB electricity market and the need for LDES.
2. Gross Margin Projections for the assets under consideration.

Our solution

LCP Delta provided an overview of the GB electricity market and the need for LDES to support the decarbonisation of the power system, as well as a historic review of the assets under consideration and their performance to date.

This was supplemented with revenue projections for the assets under consideration for various markets the assets can participate in.

Finally, a review of the GB Policy and Regulatory landscape was provided to the client, including an impact assessment for the assets in question.

Our impact

The client leveraged our commercial due diligence work to put forward a non-binding offer for the assets, demonstrating the practical application and impact of our analysis in their strategic decision-making process.