Brazilian Energy Sector Analysis
In anticipation of a high-level trade mission planned by the US DOE to help US companies explore this growing market, K&M was engaged by US DOE to provide a comprehensive analysis of the Brazilian energy sector. The survey entailed data collection regarding the current situation and needs in the energy and environmental sectors. It also provided a market assessment, identified US companies interested in pursuing business opportunities, and identified potential viable projects.
K&M has been engaged a European-based private equity firm to analyze renewable (and possibly gas) energy investment opportunities in six Latin American countries. For the first phase of the engagement, K&M analyzed each country’s energy sector in terms of market fundamentals, market design and regulation, access to PPAs, risk, level of competition, and return dynamics, and then evaluated each market based on the client’s investment criteria. K&M then presented its market conclusions and recommendations to the client. For the second part of the engagement, K&M performed a deeper-dive assessment of the two countries with the highest investment potential for the client and designed potential entry strategies. This phase also included identification of particular project investment opportunities consistent with the client’s criteria. The conclusions were presented to the client.
Funded by a USTDA grant, ESS hired K&M to assist with a feasibility study, including a pilot project, for battery storage in Brazil. The feasibility study will assess the economic, technical, and regulatory impact of adding long-duration storage to a solar photovoltaic (PV) system in a Virtual Net Metering Structure. The feasibility study contains two focal points:
1. Planning and executing a small representative pilot project to provide the necessary validation of the energy-shifting business model using the ESS Iron Flow Battery and solar PV to ascertain the viability of a large PV + storage project planned for multiple customers.
2. Developing the technical and economic plan to prove the feasibility and viability of deploying multiple distributed generation (DG) projects ranging in size from 3 to 5 MW of PV and 8 to 10 MWh of energy storage.
K&M’s scope includes: estimating the pilot project costs; conceptual design for PV and battery system; technical, economic, and financial modeling and analysis; project site resource analysis and preparation; analyzing project financing options; and identifying US sources of supply.