WHAT WE DO

SECTORS covered

The renewable energy segment includes hydroelectric (large- and small-hydroelectric generation stations); wind (onshore, onshore and urban); solar (photovoltaic; solar generators; solar water heating and passive solar); biomass (sludge, waste and agricultural feedstocks); geothermal (plant and local heating); and wave and tidal generation.  We are also closely following emerging renewables technologies, such as kinetics, which will have significant applicability in the transportation infrastructure sector.  Hydroelectric, wind and solar energy have perhaps been the renewables energy sources most exploited over the history of mankind.  However, the application of technology over time has changed how these energy resources are harnessed.   For example, mankind has been harnessing hydro and wind energy for many millennia for the purpose of direct mechanical power (such as powering mills and sailing ships) and solar power was used extensively to grow "biofuels" which was consumed and converted to mechanical energy by animals and humans.  In modern times, we have both expanded the scope of renewable energy and also, in most cases, migrated away from conversion to mechanical energy toward conversion to electrical and heat energy.

Over the course of the previous century, due to the processes of global industrialization and electrification, many of the earth's major river systems (hydrological resources) have been exploited through the construction of large dams and "run-of-the-river" hydroelectric plants capable of generating significant reliable base-load electrical energy.  The massive growth in the renewable energy segment over the past several decades has been dominated by growth in the wind and solar generation segments.  To a lesser extent there has also been some growth in the biomass, geothermal, tidal and wave and small hydro segments (in certain regions, where resources are accessible).  The large growth in the wind and solar segments has been largely attributable to a combination of reduced capital costs for wind turbines and solar photovoltaic panel arrays, together favorable offtake structures (power purchase agreements, feed-in-tariffs and similar structures), tax and emission credits, "green certificates" and many other similar incentive and subsidy regimes provided in many energy markets.  Irrespective of this growth, hydroelectric power dominates all renewables, accounting for about 70% of all renewable energy generation globally.

Wind, solar, tidal and wave energies are considered "intermittent" generation technologies.  None of these generation technologies can provide consistent dependable "base load" generation throughout any 24-hour period.  Furthermore the actual daily and hourly energy outputs of wind, solar and wave generation technologies is inconsistent and unpredictable (to varying degrees) due to their dependency climate, season and weather patterns.  Since there have been rapid growth in many of these intermittent renewables technologies in many energy markets, this has posed considerable problems in with respect to the "merit order" structure in many of these markets.  Energy markets that have a significant share of their generation supplied by technologies such as hydropower, coal, lignite and nuclear have experience many challenges with respect to balancing their energy grids.  The core of the problem is that traditionally the "base load" plants were nominated first (first priority in the "merit order") on a day-ahead basis for the following day.  Given that it is impossible to predict, with precision home much wind, solar and wave energy may be generated, there is always a possibility that these intermittent renewables may generate a surplus, and an imbalance in the grid.  Gas plants have the flexibility to serve as "load following" plants and have the flexibility to be ramped-up and ramped-down in effort to balance the grid.  Markets such as Denmark (with a very high concentration of wind) have relied to a high degree on gas plants as a back-up to intermittent renewables.  Potentially nuclear SMR/AMR generation units (where nuclear power is politically acceptable) will provide a suitably flexible alternative to gas-fired generation as a intermittent renewables back-up.

The "game changer" in terms of intermittent renewables will be whether large scale energy storage technology can evolve to commercially viable utility scale.  Thus far, battery technologies are not commercially viable at a utility scale.  There are a number of "utility scale energy" storage alternatives to battery arrays.  The only ones that are proven to be commercially viable are pump-storage hydroelectric facilities and molten salt solar plants.  Both of these technologies, while feasible at a commercial scale depend on the proximity of geographical features (mountains and deserts) to concentrations of generators and population centers.  Therefore these technologies are not practical in many of the worlds largest energy markets.  DSC experts closely follow technological developments in the energy storage industries and we can advise clients of any potentially feasible applications of these technologies.

The renewables generation segment is comprised of renewables generation businesses (government-, utility-owned or independent) and the assets related to the production of renewables power (electricity, and potentially heat and/or cooling energy in the case of solar and geothermal technologies).  DCS advisors provide expertise across all renewables technologies.  Within the following links we discuss the major renewables generation technologies that we cover and our related services in greater detail.

• ​Hydroelectric
• Wind
• Solar
• Biomass
• Geothermal
• Wave and Tidal

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 renewables subsector.   Our experts have significant experience and competence in delivering renewables 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 renewables subsector, 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 (in the case of water desalination and power plants or biomass/sewage sludge energy recovery plants); solid waste (in the case of biomass/solid waste "waste-to-energy" plants); energy transmission, distribution, sales and supply and trading (electricity, heat and/or cooling grid evacuation); 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 renewables subsector 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 renewables subsector 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
  

energy & utilities: generation facilities

renewable energy FOCUS