Clean energy companies often have to develop strategies to shape and inform the political and policy environment, and engage key legislative, regulatory and executive decision makers on matters that include tax, market and policy design, and regulatory oversight. FTI Consulting experts from different practices support clients at all stages of the policy development process. Our economic experts provide independent assessments of the potential impact of different legislations or regulations using in-house or custom-made models to provide quantitative evidence.
Our Service Offerings
Optimising Value of Clean Technologies in Electricity Market Design
Clean technologies are increasingly integrated into wholesale power markets and exposed to market risks. Electricity market design sets the rules for buying and selling electricity within a market, addressing questions such as the treatment of imbalance responsibility, transmission constraints, and whether or not the market should provide payments to generators who are available as back-up (“capacity payments”). The design and regulation of the electricity market is key to facilitate clean technologies integration, provide affordable energy to end consumers, ensure security of supply, and develop flexibility such as demand-side response and storage. FTI Consulting's experts routinely advise both public authorities and market participants on market design issues.
Climate Policy, European Carbon Market
For the European Union (EU), the efforts towards mitigating and adapting to climate change are more than just a political priority. Climate change is the guiding theme for many policies. The EU has introduced many far-reaching measures which, on one hand, successfully reduce carbon emissions and created an environment in which renewable energy could prosper, but inadvertently, led to increasing costs and burdens for European industry. FTI Consulting's clean energy professionals are experts in the European carbon trading scheme and regularly provide independent evidence by modelling and quantifying the impact of different regulatory changes on the Emissions Trading System (ETS) market.
Renewables Support Mechanisms
Governments in many countries in Europe and around the world have committed to increasing the proportion of electricity generated from renewable sources like wind, solar or biomass. Renewables support mechanisms have been created to ensure that renewable power generation facilities are built. FTI Consulting advises market players and regulators on developing these kinds of subsidies and advises companies on how best to plan their investments given the supporting mechanisms that exist, as well as on potential changes to the support mechanisms. FTI experts also maintain models and databases to evaluate possible changes to policies supporting the development of renewables and other clean technologies. Because of our global experience with these subsidies, we can advise companies on the mechanisms in different countries and the implications for them if they invest in a particular country.
Impact Assessment of Environmental Regulations, Benchmarking
Environmental regulations, such as the Industrial Emissions Directive (IED) and the EU’s Emissions Trading System (ETS) have far reaching consequences on the value and operations of industrial assets, especially for the power and energy intensive sectors. FTI Consulting can assist with understanding the impact of such regulations on a sector, using in-house economic and financial models to quantify the likely impact on asset value, and also on a range of macroeconomic indicators such as sectoral margins and employment. In addition, we can provide monitoring and intelligence gathering; benchmarking; stakeholder mapping and outreach strategies; thought leadership programme development; and media relations and public affairs programmes. As a result, our clean energy clients are well positioned to take full advantage of the ETS reform as it unfolds, and to reap the rewards.