A private client contracted K&M to assist in evaluating the feasibility of integrating Offshore Wind resources in the Caribbean.

In this assignment, K&M is responsible for researching offshore wind design considerations, identifying offshore wind siting and configurations viable for the Caribbean, and calculating the levelized cost of electricity (LCOE) for various offshore wind scenarios. Topics covered in the offshore wind design research include siting considerations (water depths, distance to shore, wind speeds, spacing, and shipping routes), substructure types, wind turbine sizing, transmission options, and estimated CAPEX and OPEX for key offshore wind components. Based on these factors, K&M will perform a high-level siting analysis for the Caribbean and develop cost estimates for wind farms of three sizes, including a discussion of the indicative BESS capacity that should be added to the client’s grid to provide sufficient operating reserves for each scenario. Based on these results, K&M will estimate the LCOE generated by each offshore wind/BESS scenario. K&M will deliver its findings in a PowerPoint presentation to the client’s staff.

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.

WWF hired K&M to conduct a comprehensive training program for Wington on Financial Modeling for Renewable Energy (RE) Projects. This virtual training is designed to equip Wington with the skills to develop a financial model that aligns with the Caribbean Development Bank’s (CDB) standards. The program is structured into two parts, spread over three days. Part 1 focuses on the core components of a financial model for RE projects, addressing crucial aspects like the levelized cost of electricity, financing requirements, annual electricity output, impact of varying assumptions, and key financial indicators such as Internal Rate of Return and EBITDA margin. This section includes detailed instructions on modeling various phases of project development, capital and operational expenditures, revenue generation, financial statements, and essential financial and operational indicators. Part 2 offers a practical walkthrough of the financial model K&M developed for Wigton, illustrating the model’s modules, data sources, calculations, interrelations, and application in sensitivity analysis.

FortisTCI plans to increase the amount of electricity generated with solar PV that it uses to supply its customers in TCI. K&M has been engaged by FortisTCI to develop a robust estimate of the amount of electricity that can be generated with solar PV systems that are economically feasible in TCI. This will inform: (i) the targets FortisTCI sets for generating electricity with renewable energy (RE); and (ii) the energy and capacity FortisTCI will need from other sources, such as natural gas, to reliably meet the demand from its customers. As part of an initial assessment of solar PV on TCI, K&M will conduct a review of the existing GIS data and other relevant information, conduct site visits to Provo, North Caicos, Middle Caicos, South Caicos, Gran Turk, and Salt Cay, and will develop a dynamic financial model for solar PV. This will inform FortisTCI on the total amount of land available that can be used to install utility-scale solar PV systems, the total amount of electricity that can be generated with economically feasible solar PV systems, and the average levelized cost of electricity (LCOE) generated with economically feasible systems.

In this assignment, K&M holds several key responsibilities. Firstly, they are tasked with conducting a comprehensive review of the existing Geographic Information System (GIS) data and other pertinent information. Secondly, K&M is required to carry out site visits to multiple locations, including Provo, North Caicos, Middle Caicos, South Caicos, Gran Turk, and Salt Cay. Additionally, a pivotal aspect of their role is the development of a dynamic financial model tailored for solar photovoltaic (PV) systems. This model will serve to inform FortisTCI about crucial factors, such as the total available land for utility-scale solar PV installations, the potential electricity generation capacity of economically viable solar PV systems, and the average Levelized Cost of Electricity (LCOE) associated with electricity produced from these economically feasible systems. These responsibilities collectively contribute to the strategic planning and decision-making process regarding solar PV initiatives.

Utilities Aruba is undertaking several transformational initiatives to decarbonize the energy and water sectors in Aruba. These initiatives include a proposal to create a Hydrogen Valley where energy from a new solar PV facility would power the grid and produce green hydrogen for local uses and eventually for export. Green hydrogen would be used to power fuel-cells in buses, taxis, port and airport vehicles, hotels, and public buildings. The green hydrogen would also be blended with natural gas to power reciprocating engines that supply power to the grid.

K&M will conduct economic modeling of the solar PV plus green hydrogen project proposed to understand its impact on the energy cost to Arubans. K&M will also perform independent due diligence on the technology proposed. K&M will provide assistance exploring and applying for capital grants that could reduce the solar PV + green hydrogen project’s costs. The economic modeling work will also estimate the grant amounts required to make the cost of the green hydrogen project competitive with the alternative options.

A large renewable energy developer, directly or indirectly through one or more affiliates, was participating in a competitive process for the potential sale of 100% of the shares in (1) one 52.5 MW wind farm and one 1.5 MW solar PV plant in operation (“Operating Assets”) and (2) development projects comprising 200 MW wind farms and 8 MW in a solar PV plant in the same location as the Operating Assets, and a 140 MW solar PV plant in another location (the latter three jointly referred to as the “Growth Projects” and together with the Operating Assets the “Target Companies”). The Target Companies are located in the Dominican Republic.

K&M’s role is to provide market and technical due diligence services to assist our client in all steps and activities in M&A transactions for the acquisition of 100% of the outstanding shares of the Target Companies. The first stage was to assist in the preparation of the submission of the non-binding offer.

The firm contracted K&M to provide market and technical due diligence services to assist in all steps and activities in M&A transactions for the acquisition of 100% of the outstanding shares of the Target Companies. The Target Companies include (1) one 52.5 MW wind farm and one 1.5 MW solar PV plant in operation (“Operating Assets”) and (2) development projects comprising 200 MW wind farms and 8 MW in a solar PV plant in the same location as the Operating Assets, and a 140 MW solar PV plant in another location (the latter three jointly referred to as the “Growth Projects”). The first stage was to assist in the preparation of the submission of the non-binding offer.

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

• Red Flags Report and Analysis
• Technical due diligence of operating assets and growth projects, including performance, commercial, financial, technical, and main technical, development, and construction risks
• Review of key commercial contracts
• Provide technical and financial inputs for the financial model/valuation
• Analysis of the Capex and O&M structure of the Operating Asset
• Analysis of the Pipeline (Growth Projects)
• Energy and capacity analysis
• Market assessment

The energy systems of Grenada, Saint Vincent and the Grenadines, Saint Lucia, Dominica, and Saint Kitts and Nevis are highly dependent on fossil fuels. Estimates and drilling results show these countries have 160 MW of geothermal energy production capacity. However, this capacity is significantly greater than the local demand. This situation provides opportunities to use the excess geothermal energy in creative ways that can promote the energy transformation in the Caribbean. Two examples are exporting the excess geothermal power to nearby islands or using it for electrolysis to create green hydrogen—a clean and versatile energy carrier. The Inter-American Development Bank hired K&M for this assignment to assess the potential synergies between excess geothermal energy production capacity not needed for local use in the Eastern Caribbean and the creation of a Caribbean-based green hydrogen market.

K&M carried out a pre-feasibility assessment for green hydrogen production from geothermal power and commercialization in the Eastern Caribbean (EC) with a focus on Grenada, Saint Vincent and the Grenadines, Saint Lucia, Dominica, and Saint Kitts and Nevis. This included an electricity sector analysis, estimation of geothermal energy potential, and conducting a geothermal energy cost analysis. K&M also estimated the demand for green hydrogen for energy, industrial use, heavy transport, and petrochemical production in the EC and Trinidad and Tobago.

Our team identified the export opportunities for green hydrogen produced in the EC, as well as the required technologies and options for the production and export of green hydrogen. Additionally, an inter-island hub for green hydrogen logistics and international export was determined. The team estimated the volume of green hydrogen produced from excess geothermal power in the EC, assessed the investment needs for green hydrogen production from geothermal sources, and calculated the levelized cost of green hydrogen.

Furthermore, a cost-benefit analysis was conducted comparing green hydrogen to subsea transmission and battery storage. These activities contributed to the development of a preliminary business model for a green hydrogen network in the EC. As part of this work, technical, commercial, and regulatory barriers for a regional green hydrogen market were identified, potential business models to support the market’s development were analyzed, contractual schemes to deliver green hydrogen to T&T were identified, and the range of pricing for green hydrogen offered to key regional and international markets from T&T was determined.

The Inter-American Development Bank had contracted a team of firms consisting of K&M, GeothermEx, and POWER Engineers to assess the potential uses of excess geothermal energy in the Eastern Caribbean. The general objective of this consultancy was to assess options for exporting excess geothermal energy in the Eastern Caribbean. The specific objectives of this consultancy were to carry out an infrastructure and investment assessment for green hydrogen production in the Eastern Caribbean based on geothermal energy generation, as well as develop a business model for a green hydrogen network in the region. K&M was responsible for estimating the volume of green hydrogen that could have been produced from excess geothermal power in the Eastern Caribbean, determining the investment needs to produce green hydrogen from geothermal sources, estimating the levelized cost of green hydrogen, and proposing a preliminary business model for a green hydrogen network in the Eastern Caribbean.