Power Planning Associates Ltd, Energy & Management Consultants
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Strategic Planning

A consequence of the trend towards deregulation and liberalisation of electricity markets has been a reduction in the type of centralised planning previously undertaken by the vertically integrated monopoly utilities. In deregulated and liberalised markets, successor utility businesses typically operate in a competitive environment where they are subject to a range of commercial uncertainties.

In order to remain commercially viable and competitive, and to meet the performance expectations of customers and regulators, electricity utilities must carefully plan the deployment of their financial, technological and human resources on long-, medium-, and short-term planning horizons. The tools required by these utility businesses are very different from those used by monopoly utilities. These tools include:

  • Strategic analysis
  • Competitive analysis
  • Market analysis
  • Scenario planning
  • Value chain analysis
  • Financial analysis
  • Risk analysis and risk management
  • Real options pricing
  • Game theory approach to trading strategy

PPA has substantial experience in conducting analysis using many of these approaches. Bespoke computer models are typically developed to assist in these analyses.

 

Other Skills