WHAT WE DO

SECTORS covered

energy & utilities: renewable energy generation

hydroelectical energy FOCUS

The hydroelectric renewable energy segment includes both large hydroelectrical power stations (including "run-of-river", storage and pump storage plants, generally 30MW or more of installed capacity) and small hydroelectrical power stations (generally, less than 30MW installed).  Hydroelectrical power generation is the dominant form of renewable energy generation, accounting for about 70% of total global renewable capacity.

Run-of-river plants involve the channeling of a large river's flow through an array of turbines to produce a continuous reliable "base load" electricity (however, in the case of seasonal changes in watershed and during droughts, output may vary).  

Storage hydroelectrical plants utilize a dam or other embankment, where water is stored in a reservoir.  Storage hydros have the capability to produce either "base load" power generation by releasing a steady stream of water from the reservoir through an electrical turbine or the flow can be restricted or turned off in order to reduce electrical output (for purposes of grid balancing).  The water stored in a reservoir represents a stockpile of stored renewable electrical energy.  Pump storage facilities represent one of the only commercially feasible means of utility scale energy storage and, where geographic and energy market conditions permit.  

Pumped storage involves use of low pressure electrical pumps to pump water, via pipe to an elevated reservoir (where there is rapid elevation gain between water source and the reservoir, usually in a mountainous region).  The water is then released from the reservoir, via pipe and as it returns down the mountainside at high-pressure and is channeled through a turbine near that water source.  Pump storage can be commercially feasible where the pump storage plant is proximate to sources of surplus electrical energy during off-peak periods.  For example, in the off-peak periods (such as at night) where there may be a significant run of river hydro, wind, geothermal, wave or tidal electrical energy available in a local market, this low-cost, off-peak electricity can be used to run the pumps at the pump storage plant.  During peak periods, the water can be released from the reservoir and therefore generating power that can be sold into the grid at premium on-peak prices.  Pumped storage hydro plants are amongst the only current commercially viable utility-scale technologies available to store large quantities of surplus intermittent renewable energy generated during off-peak times.   Unfortunately, the geographical conditions (mountains, water sources and proximity to large concentrations of intermittent generators) does not exist in close proximity to many of the world's large energy markets.  Therefore, pumped storage hydro has only limited applications, where geographical conditions are favorable.

Our advisory services can help our clients align the capabilities of the counterparty's capital and "know-how", efficiencies, life-cycle operational and maintenance discipline, and management resources with the public sector objectives of most efficiently providing and ensuring safe, reliable, and efficient electricity generation to citizens and business users at affordable prices (energy tariffs, fees and taxes).  We can also assist our clients in identifying and procuring suitable vendors, technology and service providers in the hydroelectric segment.   Our experts have significant experience and competence in delivering hydro assets under various development, financing, operating and ownership models, including Engineering Procurement and Construction (EPC), Engineering Procurement and Construction Management (EPCM), Operations & Maintenance (O&M), Design-Build-Own-Operate (DBOO), Design-Build-Own-Operate-Transfer (DBOOT), and similar variations.  We also have significant experience advising on Public-Private Partnership (P3), privatization and M&A transactions within the energy and utilities sector.  Our broad and global experience includes all forms of P3 models, under regulated or deregulated tariff regimes, offtake agreements (such as various forms of PPAs and CfDs and similar contractual agreements), availability payment, as well as stock/share, trade and asset sales/acquisitions and Initial Public Offerings (IPOs) with respect to energy and utilities companies and assets.

Within the hydroelectric segment, DCS experts maintain relationships with related project consultants and participants including: both international and local legal advisors; technical, engineering and environmental/social advisors, economic/market consultants; contractors, vendors and technology providers; strategic and financial equity sponsors; lenders (including commercial lenders, international/development financial institutions (IFIs/DFIs), Export Credit Agencies and Export-Import Banks (ECA/Ex-IMs), institutional lenders, bond funds and investment banks) and credit rating agencies (if necessary).  We are always prepared and highly experienced in taking on a lead transaction advisory or project/program management role where we coordinate and manage (in some cases, procure and retain via subcontract) various technical, legal and other consultants required for the project.  On behalf of our clients we are prepared and accustomed to leading and concluding negotiations with governmental/public sector or equity sponsors, contractors and venders, lenders, rating agencies and regulators, on behalf of our clients, as may be relevant for a given client project.

In many client cases, there may also be a significant nexus between generation projects, assets and businesses and other sectors that we specialize in, such as water and wastewater (dams, water supply, irrigation, flood control and water diversion projects); energy transmission, distribution, sales and supply and trading (electricity and water grids); and, industrials (E&C, heavy industries). We are prepared to bring our complementary expertise in these other relevant sectors to our generation sector clients, as their specific client project may benefit.   

Please click on the below links to learn more about the specific services related to the hydroelectric segment that DCS experts can offer:​

• ​Transaction Advisory
• Project/Program Management
• Strategic Planning
• Feasibility Studies
• Debt and Equity Capital Raising
• Contract Negotiation
• Financial Modeling, Review and Audit
• Business and Asset Valuation​
• Tender Management: RFEI/RFQ/RFP
• Mergers & Acquisitions Advisory
• Workouts and Restructuring​
• Corporate Governance
• Training and Capacity Development

DCS focuses on providing the above services in the hydroelectric segment to the following categories of clients:

• Developers/Sponsors/Concessionaires
• Investors
• Corporations
• Governments/Governmental Entities
• Contractors/Vendors
• Utilities
• Lenders
• Regulators​
• Investment Banks
• International Agencies
• International Finance Institutions