Electric Vehicle Business Case
Water en Energiebedrijf Aruba (WEB) had engaged K&M to conduct an Electric Vehicle Business Case Study. The main goal of this assignment was to support WEB in identifying and evaluating potential business models for their involvement in the electric vehicle charging industry in Aruba.
To accomplish this objective, K&M executed the following activities:
- K&M reviewed electric vehicle regulations and assessed existing business models implemented in comparable countries. This analysis served as a foundation for identifying suitable approaches for electric vehicle charging in Aruba.
- K&M identified various business models specifically tailored for electric vehicle charging in Aruba. These models encompassed scenarios where WEB would be responsible for the financing, construction, and operation of electric vehicle charging stations.
- K&M developed an economic model to assess the feasibility and potential profitability of each identified business model. Additionally, K&M scrutinized the regulatory landscape to determine if any new regulations were necessary to enable the implementation of these models effectively.
- K&M provided WEB with comprehensive recommendations on how to proceed with their electric vehicle charging business. These recommendations were based on the evaluation of the different business models and took into consideration the economic analysis and regulatory requirements.
By conducting the Electric Vehicle Business Case Study, K&M played a vital role in assisting WEB in evaluating and identifying the most suitable and viable business models for their involvement in the electric vehicle charging sector in Aruba.
Oserian Two Lakes Power’s (OLTP) geothermal power plant is an important part of Kenya’s renewable energy and climate change prevention strategy. OLTP engaged POWER Engineers for support in ensuring a total load of 8 MW can be provided to industrial clients at Oserian via a high-voltage interconnection to Kenya Power and Light Company’s (KPLC) 33 kV distribution grid located nearby to avoid short-term use of diesel generation while OLTP further develops its geothermal resources.
K&M was engaged by POWER Engineers on a project to support the development of a geothermal/solar hybrid industrial park in Naivasha, Kenya, by providing an analysis of the requirements for interconnection of the industrial park to the national grid of Kenya to supply backup power. This project will provide technical assistance for the specification and design of a synchronized interconnection between the nearby 33kV KPLC line to the OTLP 11kV mini-grid.
K&M’s scope of work includes the following:
- Assessing the commercial and economic viability of the KPLC interconnection and its impact on the cost of power to OTLP’s industrial clients
- Identifying the factors that influence the economics of the project and of combined power provision by both geothermal resources and the KPLC distribution grid
- Recommending an operating procedure for decision makers to choose between OTLP geothermal/solar and KPLC grid-provided power
As part of its scope of work, K&M considered a range of technical options coupled with capital and operating expenditures (CAPEX, OPEX) to assess the economics of grid-supplied vs. geothermal-supplied electrical energy. K&M will incorporate factors such as KPLC time-of-use and bulk rate electricity tariffs, expected utilization characteristics of OTLP electrical load (timing, intensity, duration), and estimate investment and operational requirements to model and evaluate the project economics. K&M will identify factors that influence the economics of the project and evaluate their sensitivity and impact during fluctuations. Lastly, K&M will provide clear recommendations and operating procedures that identify when to use OTLP-provided geothermal power and when to use KPLC grid-provided power.
K&M compared the two (2) options (OTLP or KPLC supplied energy) on the basis of the lowest cost per unit of electricity under standard assumptions and produce a Cost-Benefit Analysis for the project.
K&M served as Owner’s Engineer to the Egyptian Electricity Authority for the engineering design, procurement and construction supervision of Egypt’s first subscriber fiber-optic carrier loop system. This project provided a short-term reliable telecommunications link between Cairo and the 1,200 MW El-Kureimat Power Station under construction 100 kilometers south of Cairo.
K&M assessed the legal, regulatory, financial and investment framework for ARENTO as a first step in moving the utility towards commercialization and a competitive market entity. K&M undertook a policy reform and institutional framework analysis of the telecommunications sector in Egypt to determine constraints to ARENTO’s development as a progressive, financially viable telecommunications utility employing appropriate management and organizational structures. K&M performed a cost of service/tariff rate study to rationalize the institutional reform process. K&M’s evaluation and review also included: assessment of the legal, regulatory, and investment framework to determine steps necessary for the eventual commercialization and/or privatization of ARENTO; ARENTO’s operations technical assessment; ARENTO’s organizational assessment; and determine ARENTO’s optimal human resource requirements.
K&M was hired to provide ARENTO with a basis for designing and implementing an effective strategy for future telecommunications pricing. K&M worked closely with ARENTO executives and Egyptian government officials to ensure the feasibility and practicality of alternative tariff structures and other service enhancements evaluated in the study. This assessment was an integral component of ARENTO’s efforts to increase operational efficiency, decrease costs and improve customer service quality. The ability to accurately determine costs and establish an acceptable and equitable tariff rate assisted ARENTO to facilitate future planned investments, reduce debt, and improve its viability as a corporate entity.
K&M managed the Infrastructure Finance Advisory Service Program as part of the US-Asia Environmental Partnership (US-AEP) for the USAID. The US-AEP was a cooperative effort managed by USAID in conjunction with the Export-Import Bank of the U.S. (EXIM), the Overseas Private Investment Corporation (OPIC), the Trade Development Agency (TDA).
K&M, supported by Pulsatron Technology Ltd. (the British technology licensor) and the Washington, D.C.-based Sheet Metal Worker’s International Association (holder of U.S. installation and maintenance rights), was engaged by US DOE to conduct a study to estimate the cost and schedule for design, installation and potential testing of a Pulsatech™ pollution control device on a plasma furnace at DOE’s Western Environmental Technology Office (WETO). K&M’s assessment reviewed available information on Pulsatron science and technology as well as potential commercial application and market considerations.
K&M served as Owner’s Engineer on behalf of the Egyptian Electricity Authority (EEA), with funding from USAID to extend its microwave communication system from Cairo to Suez. The 100 km system links the electrical power generating stations in Cairo, Suez, and Ismailia with the EEA’s National Energy Control Center (NECC). K&M’s scope of work included engineering, procurement and construction management of 10 hop digital microwave, fiber optic cable and digital microwave radio communication system for the EEA. The equipment included radios, eight MUX equipment cabinets at drop and insert sites using SDH equipment and two digital access system cabinets installed at the terminal sites, equipment antennas and advanced communications towers.
K&M conducted a training workshop on utility’s privatization with key government and utility officials. The training aimed to strengthen the institutional, organizational and technical capacity of the Nigerian Bureau of Public Enterprises (BPE)—the central authority tasked to implement the country’s ongoing privatization program. K&M’s utility privatization training team prepared an agenda focused on Nigeria’s electric power and telecommunications sectors. Four workshop days were aimed at familiarizing the BPE senior core team, staff members, other government officials, and power and telecom utility officials with the principles of utility privatization. In addition, discussions focused on current privatization programs in other developing economies.
K&M was engaged by the World Bank to conduct a training seminar for the benefit of public officials from the Government of Ghana. The training seminar presented an overview of how to identify, value, and manage fiscal commitments from PPPs, and it included a case study of the Kenya-Uganda Railway Concession.