The Government of Morocco intends to increase the country’s energy security by reducing its dependence on imports and diversifying its sources of natural gas imports. The Moroccan Ministry of the Energy Transisiton and Sustainable Development has contracted the International Finance Corporation (IFC) to assist in the design and tender of an LNG import and regasification terminal and related downstream infrastructure. This includes a sustainable LNG import terminal in the port of Nador West Med, a gas pipeline to connect the terminal to the Maghreb – Europe Gas Pipeline (GME) to the south (140km), and a gas pipeline to connect the industrial zone in Mohammedia to the GME to the west (220km). In May 2024, IFC retained Rogan Associates to provide engineering services related to the infrastructure design and feasibility studies for the LNG import terminal and pipeline project. Rogan Associates retained K&M Advisors LLC to review and comment on the feasibility study and related reports for the project.

In this assignment, K&M is tasked with several key responsibilities. Firstly, K&M will review and provide feedback on various critical documents, including the inception report, draft final report, final report, and the technical inputs to the bidding documents. Additionally, K&M will participate in calls with the International Finance Corporation (IFC) as requested by the Client, ensuring consistent communication and alignment on project objectives and deliverables.

The U.S. Trade and Development Agency (USTDA) is sponsoring the Global Procurement Initiative: Interstate Clean Energy Procurement Program for India. This program consists of multiple activities a virtual workshop, which will train participants on clean energy procurement practices.
The workshops are designed to investigate how to integrate best-value determinations and international best practices in public procurement for India’s clean energy sector. The trainings will specifically explore value-based procurement mechanisms designed to achieve optimal results from public procurements in the energy sector using advanced value and quality-based procurement methods. The aim of the workshops is to improve technical capacity in developing technical specifications, utilizing life-cycle cost analysis (“LCCA”), and creating non-price criteria for evaluation factors. This Program will also provide a platform for cross-border knowledge sharing in the procurement of renewable energy.
K&M was engaged by the Business Council for International Understanding (BCIU) to develop and deliver USTDA-funded training sessions on international procurement best practices and practices to achieve value for money in the clean energy sector. K&M delivered two webinars listed below, including (i) preparation of presentation slide decks, (ii) development of responses for prospective Q&A, and (iii) conducting each webinar:

• Bidding Process for the Procurement of Power: This session discussed bidding process for the procurement of renewable energy in India, covering the regulatory framework and guidelines, power market structure, and modes of procurement, and comparison with examples in emerging markets.
• Variable Renewable Energy Power Purchase Agreements: This session discussed overview of PPA for procurement, key obligations and clauses in PPA, and considerations for developing a bankable PPA for VRE and ESS projects.

Guam Power Authority (GPA) procured a 198 MW Ukudu combined cycle power plant on an IPP basis. The plant is expected to enter commercial operation in third quarter of 2025 and will initially operate on Ultra Low Sulfur Diesel. GPA intends to develop an LNG terminal to convert the Ukudu plant to operate on natural gas. K&M was retained as a lead consultant to assist GPA in conducting LNG terminal technical and commercial feasibility analysis, and, if proven feasible, to assist in procurement of the LNG terminal and negotiating as gas supply agreement.

Currently, K&M works on the Phase 1 of the project, which includes such tasks as estimating the LNG demand, analyzing source and delivery options, selecting the preferred site and configuration for the LNG terminal and developing terminal conceptual design and cost estimate. The scope of work also includes analysis of the possible business models, financial analysis, determining project feasibility and developing recommendations on whether to proceed with procurement of the LNG terminal. If GPA decides to proceed, K&M will assist GPA in procurement of the LNG terminal and LNG, negotiating a gas supply agreement, and overseeing work during the LNG terminal implementation.

K&M was hired by the Caribbean Development Bank (CDB) to provide expert consultancy services to Wigton Windfarm Limited (WWF) in its strategic application to the Office of Utilities Regulation (OUR). This collaboration is aimed at supporting WWF’s case for the re-powering of its Phase-I equipment. In this assignment, K&M was tasked with creating a detailed report for the WWF, under the commission of the CDB, to support WWF’s re-powering proposal before the OUR. The report aimed to provide a robust argument for special consideration of WWF’s project, addressing OUR’s concerns about the proposed PPA price, efficiency gains, and the broader implications of the project’s approval. K&M’s role involved presenting market research to underscore the financial model and PPA pricing suggested by WWF, justifying the financial assumptions against market dynamics, and directly responding to the OUR’s feedback. Additionally, K&M proposed a structured methodology for the OUR to evaluate WWF’s and similar future re-powering projects, considering their strategic significance to the national energy landscape. This comprehensive approach was designed to facilitate understanding and alignment between WWF’s objectives and the OUR’s regulatory standards, paving the way for informed decision-making regarding the re-powering initiative.

K&M was engaged by KBR on a time and materials basis to assist the Singapore government in finalizing the Request for Proposals (RFP) and its annexes for Phase 1 of the Clean Ammonia Project. As a subconsultant, K&M’s role is to provide expert advisory and modeling services specifically related to the commercial aspects of the RFP. K&M reviewed the RfP and the commercial annexes and provided recommendations to the Government.

K&M Advisors was contracted by KBR to support the Singapore Government in designing the commercial aspects of an RfP process to contract a clean ammonia project. The scope of work included advise on the project structure, incentives, RfP drafting, and evaluation criteria. In particular, K&M evaluated potential Public-Private Partnership (PPP) models suitable for the project. This task was comprehensive and involved assessing various candidate PPP models, summarizing each option, and detailing their respective advantages and disadvantages. K&M made recommendations on the most suitable PPP models. These recommendations considered aspects like government funding, ownership options, their implications under various timing scenarios, and related termination and buyout concepts.

In addition to PPP model assessment, K&M Advisors was tasked with identifying relevant funding support mechanisms and incentives. This part of their role focused on analyzing these mechanisms and incentives in terms of their feasibility and the potential impact on the project. They were also responsible for explaining the pros and cons of each option, thereby aiding the decision-making process. This included providing expert advice on the application of the Contract for Difference (CfD) concept for the project. This involved presenting case studies of commercial or market structures, such as CfD, and analyzing their effectiveness. The firm was also responsible for assessing and recommending whether CfD or an alternative model would be the most suitable for the project’s needs.

Lastly, K&M Advisors offered guidance on integrating key funding and commercial structure parameters into a Request for Proposals (RFP). This guidance was to be presented as high-level guidelines in the form of a PowerPoint presentation. They advised on RFP market regulation clauses, evaluation matrices, and questionnaires, aiming to enable a fair comparison of proposals. Their advice also included best practices for apportioning costs related to power generation, bunkering, and common infrastructure.

Through these comprehensive services, K&M Advisors aimed to equip the client with a thorough understanding of the various aspects of funding, partnership models, and commercial structures crucial for the project’s success.

A large renewable energy developer engaged K&M to provide strategic, market, and regulatory services to support its preparation in submitting an initial non-binding expression of interest to invest a minimum of US$50 million of equity in facilitating the growth of a battery energy storage solution provider and technology company that combines its proprietary software with end-to-end project delivery for C&I and generation customers across Latin America.

As part of the project, K&M completed the following tasks:

• Review relevant materials provided in the data room for Round 1 and recommend clarification questions for the sell-side advisors
• Provide quantitative and strategic analysis and participate in discussions designed to reach a decision regarding participation in the investment process. The analysis was focused on the attractiveness of core markets, the attractiveness of other selected markets, regulatory changes and risks, assessing and commenting on key investment criteria, identification of any key critical commercial and regulatory market risks and opportunities with respect to target markets, pillars for growth and uses of funds, and review of relevant technologies.

Review and comment on the sell-side financial model, with expected targeted returns from an investment in the company and targeted return and valuation for the AssetCo business model.

Caribbean Utilities Company (CUC) plans to renew the contracts for purchasing ULSD from Sol and Rubis. As part of this renewal, CUC wants to refine the fuel supply contracts used in the past and revisit if PLATTS is still the optimal fuel price index for CUC.

K&M will improve and refine the fuel supply agreements that CUC used in previous fuel supply tenders. K&M will also analyze if PLATTS is CUC’s optimal fuel price index. This analysis will include investigating which fuel price indices CUC’s fuel suppliers are likely to use to buy the fuel they supply to CUC and whether CUC would be better off using those indices rather than PLATTS. Based on this analysis, K&M will make specific recommendations on an appropriate fuel price adjustment formula.

K&M will assist CUC in developing new drafts of the primary and secondary fuel supply contracts that reflect the above improvements and refinements.

K&M will then assist CUC in preparing an RFP and reviewing and evaluating the proposals submitted by Sol and Rubis.

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