Aqualectra is facing increased load growth and has recently retired its gas turbine unit, GT2, making it difficult for Aqualectra to meet peak demand. As a result, Aqualectra is requesting proposals for temporary power solutions to meet the growing demand in 2024 and 2025. The contract for temporary power would last approximately two years, starting around May 2024. Aqualectra requested K&M’s commercial and technical advisory services to determine the least-cost configuration of capacity and electricity from the temporary power units generating assets and the CRU gas turbine.

K&M discussed the scenarios and sensitivities that would be most informative to analyze with Aqualectra. Using the agreed-upon scenarios, K&M adapted its existing generation and cost models for Aqualectra to perform the temporary power analysis. K&M ran and analyzed the models and presented the results, including the levelized cost of electricity (LCOE) of the temporary power scenarios, the recommended configuration of the temporary power, the hourly dispatch of the generation assets, and all assumptions used in the analysis.

An electric utility is selecting a company that will supply natural gas for power generation. The prospective supplier is expected to import LNG delivered at an onshore or floating terminal and send gas via pipeline to the client’s power plants. The client intends to select one of the shortlisted firms as a “Preferred Supplier” and commence negotiations. The client requested K&M’s commercial and technical advisory services during these negotiations and the contract implementation with the prospective gas supplier. The services K&M is providing in this project include estimating the LNG demand, analyzing the business case to switch from diesel to natural gas, analyzing the viability of various sites, developing the gas quality specifications, and advising throughout the process of negotiating a gas supply agreement (including setting a negotiation roadmap, developing an issues list, participating in negotiations, and providing support until the agreement is executed).

K&M’s scope of work includes:

1. Analyzing historical operational and dispatch information of power plants that will be converted to gas
2. Developing an hourly merit order dispatch model to estimate hourly generation for each plant during the next 25 years
3. Analyze the technical viability and costs of converting generation units to gas
4. Calculate the levelized-cost of electricity under various generation expansion scenarios and advise on the least-cost option
5. Develop gas quality specifications
6. Estimate the all-in cost of gas delivered at the power plant battery limit and benchmark it against similar projects
7. Actively support throughout the negotiation process