UK combined heat and power (CHP) and delivered energy tariff forecasting

Base Power | February-March 2020

Cornwall Insight was commissioned by Arrowpoint Advisory and CHP developer Base Power to provide energy market modelling to support to a planned fund-raising programme. Arrowpoint Advisory is a division of financial advisory group Rothschild & Co., and Base Power is a developer of on-site generation assets for the manufacturing sector.

For the project, Cornwall Insight modelled delivered retail prices for a selection of industrial and commercial (I&C) energy users in the UK over a 20-year time period. Wholesale prices were developed using Cornwall Insight’s in-house Plexos modelling capabilities, with Third Party Charges (TPC) derived using the methodology employed for Cornwall Insight’s off-the-shelf quarterly TPC report.

Cornwall Insight also provided due diligence support in respect of the regulatory environment for CHP systems to develop a report to support the fundraising. This was in the form of a report examining network charging workstreams which could impact on CHP business cases, including the Targeted Charging Review, modifications in the Connection and Use of System and Balancing and Settlement Codes which could have impacts, as well as other regulatory opportunities and risks.

Cornwall Insight’s modelling and reports contributed to a planned fund-raising process.