In regions of the world that are adequately supplied by natural gas (whether from gas fields or by pipeline or LNG/CNG access), gas-fired energy generation remains an attractive generation technology. Gas generation has a number of favorable attributes over other forms of fossil fuel generation. Perhaps the most obvious advantage of gas generation is that it is significantly less carbon-intensive and is cleaner burning than coal, lignite, oil and diesel generation technologies and if utilizing modern F-Class and H-Class combined-cycle gas turbines (CCGT), can be more efficient than coal and lignite (whereas, some plants providing 50%-63% net plant electrical efficiencies, and higher if co-generation). Gas generation units can be operated as highly dependable and reliable (high capacity factor) "base load" generators. However, unlike coal and lignite generation units, gas generation units can be efficiently and quickly ramped-up and ramped-up down, which allows them to operate as "peaker" or "load following" plants. Gas generation units are also standardized "off-the-shelf" technologies which contribute to reduced manufacturing and assembly costs and faster power plant construction and installation time frames.
Because of its "load following" capabilities, gas generation is often viewed as an ideal form of back-up generation in energy markets with a higher percentage of intermittent renewables, such as wind and solar. Therefore, in markets such as in Europe gas generation plays a key role. In this role, while there is not an existing commercially available generation technology that competes with gas (in terms of carbon intensity, affordability, ease of implementation), a potential "game changer" in the horizon in the energy markets could be nuclear small modular reactors and advanced modular reactor (SMR/AMR) technologies.
Gas generation technology can be and often is applied to co-generation (electricity and heat/cooling) and water (desalination) and power plants. Similarly, gas fired plants can be co-fired with biomass (including sewage sludge, solid waste and agricultural biproducts). In each case, co-generation and/or co-firing can increase net plant efficiency, reduce carbon emissions and reduce fossil fuel unit consumption in comparison to stand-alone plants. DCS advisors have a great deal of expertise with respect to co-generation, water and power production plant and biomass co-firing (including specific expertise in water/wastewater, district heating/cooling, and solid waste utilities and enterprises).
Our advisory services can help our clients align the capabilities of the counterparty's capital and "know-how", efficiencies, life-cycle operational and maintenance discipline (including plant decommissioning), and management resources with the public sector objectives of most efficiently providing and ensuring safe, reliable, and efficient electricity (and heat/cooling or desalinated water) generation to citizens and business users at affordable prices (energy tariffs, fees and taxes). We can also assist our clients in identifying and procuring suitable vendors, technology and service providers in the gas generation sector. Our experts have significant experience and competence in delivering generation assets under various development, financing, operating and ownership models, including Engineering Procurement and Construction (EPC), Engineering Procurement and Construction Management (EPCM), Operations & Maintenance (O&M), Design-Build-Own-Operate (DBOO), Design-Build-Own-Operate-Transfer (DBOOT), and similar variations. We also have significant experience advising on Public-Private Partnership (P3), privatization and M&A transactions within the energy and utilities sector. Our broad and global experience includes all forms of P3 models, under regulated or deregulated tariff regimes, offtake agreements (such as various forms of PPAs and CfDs and similar contractual agreements), availability payment, as well as stock/share, trade and asset sales/acquisitions and Initial Public Offerings (IPOs) with respect to energy and utilities companies and assets.
Within the gas generation subsector, DCS experts maintain relationships with related project consultants and participants including: both international and local legal advisors; technical, engineering and environmental/social advisors, economic/market consultants; contractors, vendors and technology providers; strategic and financial equity sponsors; lenders (including commercial lenders, international/development financial institutions (IFIs/DFIs), Export Credit Agencies and Export-Import Banks (ECA/Ex-IMs), institutional lenders, bond funds and investment banks) and credit rating agencies (if necessary). We are always prepared and highly experienced in taking on a lead transaction advisory or project/program management role where we coordinate and manage (in some cases, procure and retain via subcontract) various technical, legal and other consultants required for the project. On behalf of our clients we are prepared and accustomed to leading and concluding negotiations with governmental/public sector or equity sponsors, contractors and venders, lenders, rating agencies and regulators, on behalf of our clients, as may be relevant for a given client project.
In many client cases, there may also be a significant nexus between generation projects, assets and businesses and other sectors that we specialize in, such as water and wastewater (in the case of water desalination and power plants or biomass/sewage sludge energy recovery plants); solid waste (in the case of biomass/solid waste "waste-to-energy" plants); energy transmission, distribution, sales and supply and trading (electricity, heat and/or cooling grid evacuation); oil & gas (gas supply); industrials (E&C, heavy industries). We are prepared to bring our complementary expertise in these other relevant sectors to our generation sector clients, as their specific client project may benefit.
Please click on the below links to learn more about the specific services related to the gas generation subsector that DCS experts can offer:
DCS focuses on providing the above services in the gas generation subsector to the following categories of clients: