Generation and transmission valuation

What will a power generation asset be worth in the future? How much will it cost to run? These questions are central to the valuation of assets, and the answers depend on large, uncertainties: fuel prices, new generation, load growth, retirements, environmental rules, and rapidly-changing market rules.

Energy Consulting maintains complex MAPS* simulation models that address these inputs and capture the interplay between assets and the marketplace they operate within. The models can be adapted to simulate possible futures and can simulate where and when value will be created or reduced.

Features and Benefits

• Transmission: Integrated, detailed transmission model assesses impacts of transmission congestion on operations and revenues.
• Site identification: Where are the utilities located, and power prices optimal?
• Fuel prices: At what point do falling gas prices have an effect on coal?
• Emissions: What plants will survive current and emerging environmental requirements, and who will benefit from the retirement of marginal units?
• Demand: How load management programs effect power prices and plant operations. It is best to understand how all those programs affect your target asset, before investing.
• Variable energy resources. How will systems operate with substantial intermittent generation from wind and solar?
• Renewable Portfolio Standards: What are the standards in each locality, and when do they become effective? Knowing the amount targeted, and where the targets are, assists new developers and provides information for existing generators who will be facing the growth of competition.

Applications

• Plant valuation
• Regulatory impact evaluation
• Congestion risk assessment
• Project development support
• Integrated resource planning
• Rate case support
• Market rule impact analysis

Regional Considerations

The original foundation for GE Energy Consulting Power Economics tools is North America. Our original simulation tools were developed based on the power market and grids in the US and Canada, but as GE has expanded throughout the world, so have our tools and experience base:

• Offices in the EU and India
• Simulation models of EU member states, India and parts of Africa
• GE Energy expertise can be tapped into world-wide
• Market summaries and assessments for select locations around the world

Certification

• GE Energy Financial Services taps into our expertise to support decisions for purchase and sales
• Performed multiple studies for ISOs and RTOs in North America