2022 Timera client work review

A round up of interesting Timera client work this year, that provides an insight into where flex asset investors and owners are focusing:

  • EU batteries: High price volatility and ancillary service market reform (e.g. aFRR) drove a big increase in clients engaging us to support BESS investment across Western Europe. Key focus markets this year: Netherlands, Belgium, Germany, Italy & Spain.
  • GB batteries: Capital deployment by GE BESS developers so far remains a level above EU markets. We have also seen a rapid pick up in transaction work driven by BESS portfolio aggregation & new entrants looking to acquire sites (given connection access constraints).
  • Hydrogen: We have seen a strong client shift in 2022 to focus on specific project investment case development as policy support take shape. Optimisation of site design is a key focus e.g. sizing & flex of electrolyser, storage & offtake.
  • LNG portfolio construction: Europe’s pivot to LNG has driven strong client engagement for us to provide contract & portfolio valuation analysis. Key focus areas are new SPAs (US flex focus), regas capacity additions & re-negotiation of contract structures / pricing.
  • EU regas & midstream: We have seen a specific client focus on investment in EU regas capacity. This has been both supporting clients understand the value impact of buying capacity & supporting developers structure offtake options.
  • Peaking flex: We continue to work with peaking asset owners & investors on analysing market & asset margin dynamics.  We have also worked with several clients on retrofitting & repowering peakers with hydrogen in the 2030s.
  • Colocation: We have done a number of engagements on BESS sizing and revenue stack impact of colocation (both wind & solar). RES investors are also increasingly asking us to analyse diversification benefits of adding BESS to RES portfolios.
  • Transactions: Our commercial due diligence & valuation support this year included BESS portfolios across GB, Benelux, Italy & Spain (several with RES colocation focus). We also supported major LNG portfolio & midstream gas processes. Thermal power transactions were quieter relative to previous years.