K&M is expanding its advisory work in the transmission sector, helping both public and private sector clients develop grid infrastructure projects in Sub-Saharan Africa with focus on affordability, bankability, and value for money.

Grid expansion and strengthening is becoming increasingly important for unlocking electricity access and economic growth in the region. Our focus is on developing successful transaction procurement pathways and project structures including public-private partnerships (PPPs), to reduce the public sector financial burden.

K&M’s transaction advisory on transmission and energy storage projects is part of our ongoing commitment to strengthening regional connectivity and promoting reliable access to electricity across Africa.

K&M Advisors has added a seventh island to the list of island nations that request K&M’s advice on their transition from Diesel to natural gas.  K&M has been engaged to support the Government of São Tomé and Príncipe (GoSTP) in its transition from diesel power generation to more reliable, cost-effective, and lower-emission natural gas power generation. Funded by the World Bank, the national Project Fiduciary and Administrative Agency (AFAP) commissioned K&M to carry out a feasibility study on liquefied natural gas (LNG)-based electricity generation solutions.

The assignment consists of two phases. In the first phase, K&M is evaluating the technical and economic viability of various LNG-to-power options. This includes assessing gas demand and power generation needs, identifying potential LNG supply sources, and analyzing marine transit logistics, terminal siting, and regasification infrastructure. The team is also developing preliminary configuration scenarios for LNG import and power generation, estimating capital expenditures, and calculating levelized costs to compare LNG to alternative generation options.

Phase II will support GoSTP in procuring the recommended LNG solution. This phase will involve developing a procurement strategy, defining the business model, identifying institutional and contractual arrangements, and preparing the scope of work for LNG supply and infrastructure development.

K&M Advisors is proud to announce its recent selection by Jordan’s National Electric Power Company (NEPCO) to serve as the Transaction Advisor for a new approximately 600 MW combined-cycle gas turbine power plant in northern Jordan. The scope of work will include assisting NEPCO in preparing the Request for Proposal and draft project agreements, organizing competitive bidding, bid evaluation, and assisting in negotiations with the selected project developer. Previously, NEPCO awarded K&M an assignment to perform technical studies for this project, including the project site selection and configuration analysis. The fact that NEPCO awarded this important project to K&M is a testament to the high-quality transaction advisory work performed by K&M on five previous IPPs in Jordan and NEPCO’s satisfaction with the depth and quality of the analysis conducted by K&M.

K&M also continues its’ long and successful history of working for another Jordanian client, Samra Electric Power Company, by receiving an award for two technical studies, analyzing an impact of gas turbine upgrades on the balance of plant equipment at Samra and Rehab combined cycle power plants.

Since 1997, K&M has worked on 9 large power generation projects in Jordan, including transaction advisory services on 5 IPPs for MEMR and NEPCO, 3 Owner’s Engineer assignments for SEPCO, and an Independent Engineer Assignment for the Attarat Project. This new assignment presents a new chapter in K&M’s extensive contribution to the Jordanian power sector.

K&M recently attended the Powering Africa Summit in Washington D.C., which was well attended by ministerial delegations, utilities, developers, and other private and public sector stakeholders in Africa’s energy sector. It was great to reconnect with old friends and meet new colleagues to discuss the importance of private sector involvement for energy access and advancing the US-Africa partnership. We look forward to continuing to support Africa’s power sector with K&M’s integrated technical, policy and transaction advisory expertise focused on bringing projects to fruition.

#PoweringAfrica #energytransition

K&M Advisors is proud to add another island to the list of islands where K&M is advising on energy transition. In this case, K&M is supporting the Guam Power Authority’s (GPA) transition towards lower costs and cleaner energy through the development of critical LNG infrastructure for the island’s Ukudu Combined Cycle Power Plant.

Under this contract, K&M Advisors is leading a team, including GHD (marine experts) and CH-IV (gas experts), advising GPA on the technical and commercial feasibility of developing an LNG import solution to supply natural gas to the 198 MW Ukudu power plant. The Ukudu plant will be commissioned in 2025 and will run on Ultra-Low Sulfur Diesel until natural gas is available. K&M’s scope of work includes a thorough demand analysis, sourcing and delivery options, site and configuration selection, conceptual design, and cost estimates for the LNG import solution. Additionally, K&M will assess possible business models and financial viability to ensure a robust foundation for the project. If the feasibility is confirmed, we will support GPA in procuring the terminal, negotiating a gas supply agreement, and overseeing the implementation phase.

Like other island economies undertaking energy transition plans, Guam has set ambitious renewable energy goals that would gradually displace thermal generation. This makes K&M’s work more challenging. The LNG/gas supply solution that GPA would develop needs to be commissioned as soon as possible to maximize fuel cost savings from switching from USLD to natural gas. However, this solution also needs to be flexible to accommodate a decreasing gas demand as renewable energy generation increases. The LNG/gas solution would also need to accommodate potential delays in the implementation of renewable energy projects or climate changes that result in higher electricity demand or lower renewable energy generation.

K&M has developed a set of tools to manage these challenges. For example, develop a gas demand forecasting model that estimates gas-fired power plant hourly dispatch for each year through 2050, considering factors such as electricity load, hourly generation from renewable sources, BESS charge and discharge, and the plant’s availability and heat rate curves. K&M’s model evaluates scenarios based on realistic assumptions on critical variables like renewable energy penetration. Similarly, K&M has developed contract provisions that ensure that GPA does not commit to onerous take-or-pay obligations but that the gas supplier recovers its fixed costs as volumes decrease. These and other tools developed by K&M are enabling the viability of LNG in small islands like Guam with ambitious renewable energy goals.

K&M sees significant potential for offshore wind to support the energy transition in countries with limited land for onshore wind development. In particular, several Caribbean islands located in regions rich in wind resources are increasingly finding it challenging to secure permits for new onshore wind farms due to land constraints. Offshore wind could offer a viable and cost-effective alternative for these regions.

Recently, K&M assisted a Caribbean utility in evaluating the feasibility of adding offshore wind to its energy portfolio. The company identified potential offshore wind farm sites within the country’s Exclusive Economic Zone that met several key criteria: suitable for either fixed-bottom or floating substructures, located outside of marine protected areas and wetlands, with wind speeds above 7 meters per second, and clear of major maritime navigation corridors.

K&M then analyzed HVAC and HVDC interconnection options and overall wind turbine configuration and estimated the levelized cost of energy (LCOE) for the selected sites across a range of installed capacities. The study revealed the optimal installed capacity for minimizing LCOE. It also found that while larger capacities could help the country achieve its 100% renewable energy target, they would result in energy curtailment and significantly higher LCOEs. However, the costs associated with these larger installations could be reduced if the excess energy is utilized for other purposes, such as producing e-fuels.

K&M was engaged by the U.S. Trade and Development Agency (USTDA) to aid in the analysis and development of activities that enhance the pipeline development for the Alliance for Green Infrastructure (AGIA) in Africa, a collaboration led by the African Union, the African Development Bank and Africa50, and including several global partners. The mission is centered on identifying and evaluating potential green infrastructure projects for project development.

Collaborative efforts between USTDA and Africa50 aim to expedite Africa’s transition to net-zero by preparing, developing, and financing green infrastructure projects, thereby accelerating and scaling priority climate resilient infrastructure development across the continent.

As part of this initiative, green infrastructure projects will be identified, screened and assessed across diverse sectors such as renewable energy, transport and logistics, water and sanitation, broadband and ICT infrastructure, health, and urban and rural infrastructure. Detailed project reports will be developed for up to 10 discrete green infrastructure projects for funding consideration by members of AGIA’s Project Development pillar, including USTDA and Africa50.

“We’re excited to be working with USTDA and Africa50 on this important initiative”, said Derek Martin, K&M’s Managing Director of Transaction Services. “K&M’s work will identify candidate projects not only align with the strategic objectives of USTDA and AGIA but also significantly contribute to sustainable infrastructure development across Africa, fostering global green growth initiatives.”

This past week, K&M had the incredible opportunity to attend the 3rd Hydrogen Congress held in Colombia, highlighted several important takeaways that are shaping the future of hydrogen in the region:

1. Strategic Positioning for Green, Blue, and White Hydrogen: Colombia is leveraging its high availability of renewable energy resources to produce green hydrogen cost-effectively. With the potential to reach cost competitiveness by 2030, Colombia is focusing on developing blue, green, and white hydrogen technologies to meet future demands and stimulate local economic growth
2. Infrastructure and Market Development: The Congress discussed the need for regulatory and policy frameworks that support the hydrogen economy. This includes creating a conducive environment for pilot projects in various sectors, such as transport, industrial uses, and power generation, which are crucial for the practical deployment of hydrogen technologies.
3. International Cooperation and Technology Sharing: Colombia is actively seeking international partnerships to advance its hydrogen initiatives. The roadmap emphasizes cooperation with countries and organizations that can provide technological and infrastructural support, highlighting the importance of global collaboration in advancing the hydrogen market.

These takeaways illustrate Colombia’s proactive approach to integrating hydrogen as a key component of its energy strategy, focusing on both technological development and international collaboration to drive the adoption of hydrogen-based solutions

We are delighted to announce that K&M Advisors will be playing a pivotal role at the 16th annual Caribbean Renewable Energy Forum (CREF), taking place from April 24-26, 2024.

As proud sponsors and participants in this premier event, our experts from K&M Advisors are set to contribute to the dialogue on renewable energy in the Caribbean. Join Nils Janson, Alfonso Guzman, Lindsay Burkhard, and Cristina Cano as they lead enlightening sessions on the following:

• Cristina Cano will delve into “The Future of Large Renewables in the Caribbean,” offering insights into off-shore wind and geothermal energy from 3:15-3:30 PM.
• Nils Janson will be moderating an engaging panel from 4:00-5:00 PM, centering on the role of geothermal and offshore wind in securing clean and reliable energy for the region.

We invite you to engage with us as we delve into the data, assess project viability, and strategize on upscaling renewable energy initiatives in the Caribbean.

#CREF2024 #RenewableEnergy #K&Madvisors #SustainableFuture

K&M Advisors attended the Powering Africa Summit on March 5-6, where they had many engaging discussions and productive meetings with industry colleagues. The event was a wonderful platform for collaboration and knowledge sharing among governments, investors, developers, and technology providers in Africa’s energy sector. They also co-hosted a dinner with partner White & Case, Martin Menski and Suzanne Perry. Thanks to those friends and colleagues who spent the evening with us  Alfonso Guzman, Derek Martin, Nils Janson, Natalie Natsumi Tsukano, Anneliese Gegenheimer, Stephen Mallowah, Erik Granskog, Jay Ireland, Kweku A. Awotwi, Vickson Ncube, Evans Twaambo, Tanyaradzwa Angela Gumbo, Yusuf Umar, Bassem Abou Nehme, CFA, Abiodun Aina, CFA, Alan Townsend, and Erica Koszalka Ehst.