Energy transition

Whole system modelling

Power systems around the world are responding to decarbonisation and decentralisation. Policy and regulation are evolving to support these over-arching aims, which presents opportunities for those who understand how it will impact their portfolio.

Additionally, demand-side assets are playing an increasingly important role in power markets, and understanding the impact of smart infrastructure, distributed assets, electric vehicles and heat pumps is crucial in planning for the future.

We support our clients in understanding how power systems will evolve and the impact of proposed changes in market structure, using our detailed in-house power market modelling suite.

Decarbonisation is causing structural changes in how power markets operate. The penetration of renewable generation has caused an increased need for flexibility at national and local levels, while ensuring consumers can benefit from the low prices that renewables bring.

Decentralisation is also changing the fundamentals of market dynamics. Network operators are becoming more empowered, taking on roles that were traditionally only for national system operators as they manage an increasingly complex network of distributed assets, including electric vehicles, smart infrastructure, batteries and heat pumps.

Governments must consider a range of policy options that will incentivise investment and allow for efficient market operation. However, these changes create uncertainty, but also opportunity, for industry stakeholders.

Using our proprietary dispatch modelling alongside a deep understanding of how energy markets are evolving, we support governments, regulators and industry participants in understanding the impact of market design changes on system evolution. Our modelling support will help clients to assess:

the implications of moving from national to zonal or nodal pricing.
the impact of split markets, derating factor changes and interconnection build-out.
the impact of changing trends in consumer behaviour.

We supplement our quantitative forecasts with robust macro-economic qualitative analysis to ensure industry stakeholders are well equipped to navigate the changing landscape.