CIFI has recently formalized a mandate agreement with Zenith Energy Corp. S.R.L. to provide financial advisory, structuring, and arranging services aimed at raising approximately US$105 million in senior debt. This financing is intended to support the construction and operation of a solar plant located in the Dominican Republic. As part of this initiative, K&M has been appointed by CIFI to conduct financial due diligence for the project, which involves a 101 MW Solar PV and a 25 MW Battery Energy Storage System (BESS) facility.

For this due diligence assignment, K&M will develop and manage a Financial Model that adheres to industry best practices, drawing on the firm’s extensive experience in financial modeling for non-recourse or limited recourse financings. This model will be designed to be detailed, functional, user-friendly, and specifically tailored to meet the needs of international project financing. Key components of the Financial Model include an income statement, balance sheet, and cash flow statement, alongside comprehensive financial projections. The model will also feature forecasts for critical financial metrics such as revenue, expenses, and profitability, and include a debt sizing mechanism based on the Debt Service Coverage Ratio (DSCR). Additionally, the model will provide sensitivity analysis to examine the effects of variable changes on financial outcomes and scenarios to explore various potential future conditions.

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.

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.

The U.S. Trade and Development Agency (USTDA) sponsored the Global Procurement Initiative: Interstate Clean Energy Procurement Program for India. This program consists of multiple activities, including two (2) separate and distinct workshops hosted in New Delhi, India, that trains 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 training specifically explores 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.

The workshops were designed to investigate how to integrate best-value determinations and international best practices in public procurement for India’s clean energy sector. The training specifically explores 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.

The K&M team provided input on agenda development, developed training presentations, and content, participated in an industry roundtable with private sector representatives, and delivered training sessions to public sector energy sector representatives from 10 Indian states.

K&M traveled to New Delhi to deliver training sessions on the role of new energy technologies, best value structures and processes, developments and lessons learned in renewable energy tenders, ensuring bankability of energy projects, financial and commercial considerations for renewable energy PPAs, and considerations for value management during tendering and implementation.

K&M has been contracted by Water en Energiebedrijf Aruba (WEB) for an assignment to assist in updating the Levelized cost of electricity (LCOE) and emissions forecast of a generation scenario where all thermals are converted to run-on gas from LNG and renewable energy sources fill at least 50% of the island’s electricity generation needs.

K&M will perform the following:

• Update and confirm scenario assumptions, including the size of wind and solar power plants; battery size and duration; investment costs; timelines for wind and solar projects; capacity factors for wind and solar projects; CAPEX and OPEX for new technologies (solar, wind, and battery; and fuel prices for HFO, LFO, and LNG
• Update WEB Generation and Financial models according to updated assumptions
  • Reflect any new information on other key assumptions driving the generation and financial model. For example, first gas timing, ELMAR demand, rooftop solar penetration, and others
  • Include more refined estimates of parasitic load and other internal electricity consumption that affects the net generation
  • Refine maintenance cost estimates based on actual running hours
  • include the Task 1 agreed-on scenarios and updated assumptions.
• Run models and analyze scenarios

The IDB contracted K&M Advisors LLC (K&M) to conduct a country-level survey in Panama regarding employment creation in the energy sectors associated to the green transition.

The main objective of the assignment was to gather data on the number and types of jobs created in the energy sector, including renewable energy, energy efficiency, demand management, electromobility, hydrogen, installation of solar panels, and storage, including advisory and consulting firms in these sectors. The K&M team made comparisons of employment creation by types of employment between the different sectors. This analysis included topics such as gender, education, investment, employment, and other relevant variables on both companies and unions present in the country that are representative of the whole. Additionally, the team provided the IDB with a database, developed a methodological guidebook, and presented the findings to IDB staff.

Cerro Dominador Solar Power Plant is a 210-megawatt (MW) combined concentrated solar power (CSP) and PV plant located in the Antofagasta Region of Chile, about 24 kilometers (15 mi) west-northwest of Sierra Gorda. The 100 MW PV plant is already in operation and the 110 MW CSP plant is in commissioning. The CSP plant includes a 243 m receiver tower, 10,600 heliostats, molten salt energy stage to support plant operation at 100% load for approximately 17 hours, steam turbine-generator, and other auxiliary equipment. A private investment client is planning on investing in the project and engaged K&M to perform project technical and market due-diligence review with the major focus on a 110 MW CSP power generation facility.

WEB is working with its parent company (Utilities Aruba) to decarbonize its generation matrix and meet the goals set by the Paris Agreement. To this end, WEB wanted to develop a set of decarbonized long-term generation scenarios for Aruba. These scenarios will include combinations of different technologies, including thermal (natural gas), solar PV, wind, lithium battery, and green hydrogen. K&M will assist WEB to develop a detailed model to estimate the Levelized Cost of the Electricity (LCOE) and emissions for each generation scenario.

K&M was retained by USTDA to assist the Terminal de Contenedores, Contecar, in identifying and analyzing power supply alternatives for the Port of Cartagena. In 2015, Contecar achieved a throughput of 2.6 million Twenty Foot Equivalent Units (TEUs), making it the 2nd busiest port in South America and earning it a rank of #60 in the world’s top 100 ports, but the port suffers from frequent power outages. In 2016 alone, Contecar suffered from 280 hours of power supply interruptions making it in desperate need of reliable low-cost power supply alternatives.
K&M is identifying and analyzing power supply alternatives, including an interconnection to the high and medium-voltage network, self-generation with natural gas, diesel, wind, and solar PV; storage (batteries or flywheels); load management systems; and other options. After confirming the preferred option, K&M will prepare the conceptual design and costs estimates, perform economic, financial and environmental analysis, and develop an implementation plan, including the EPC contract and RFP.