Cornwall Insight’s SEM Benchmark Power Curve (formally the All-Island Power Curve) is a comprehensive market and asset-level power price modelling service that delivers long-term price forecasts, informed by industry-leading regulatory, market and policy expertise, and supplemented with direct access to trusted practitioners. The service is designed for banks and debt providers, equity investors, developers, financial advisors, and operators and traders.
It helps provide clarity in understanding market fundamentals and price drivers in a changing market environment influenced by key policies. This service supports companies in considering the impact and opportunities to their investments and strategies.
The SEM Benchmark Power Curve has been designed to easily integrate data outputs with your models. The service addresses widespread concerns about the drift between typical power price modelling and real-life market practice, and the lack of adequate explanation of why long-term price forecasts change.
Key benefits
- Understand the range of credible long-term electricity prices captured by different technologies.
- Banks can build robust lending criteria and strategies shaped around power price and market fundamentals.
- Equity investors can develop investment policy and criteria including the timing of investment, technology selection and portfolio mix – given macro views of power market evolution over the long term.
- Operators and traders can make informed decisions about how best to capture market value through hedging and contracting strategies.
- Incorporate asset level price curves into project/ portfolio financial models for new build, repowering/ re-financing projects.
- Banks can determine and stress-test the lending base case, size debt and forecast debt ratio performance to avoid over-gearing.
- Equity investors and advisors can build robust ranges of levered and unlevered returns, understanding the evolution of value and risk over time, and ensure they pay/receive fair value for acquired/sold assets.
Who is it for?
- Banks
- Debt providers
- Equity investor
- Developers
- Financial advisors
- Traders
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