Navigating the Future of Energy
Europe's supply of gas and electricity is undergoing the greatest transformation in its history. Decarbonisation, decentralisation and digitalisation of the energy industry confront established business models with major challenges.
WECOM supports this transformation with a unique combination of long-term expertise in the functioning of energy markets and decarbonised energy systems and of cutting-edge know-how in energy system modelling, optimisation and machine learning.
Future Energy Systems
How can the energy system be remodelled in the best possible, most cost-effective way to achieve the decarbonisation? How can the imminent transformation of the energy supply be accomplished in time, with utmost efficiency and security of supply?
We develop answers using pathbreaking energy economic methods – from economically optimized target energy systems for countries/regions to district heating strategies for regional/municipal utilities.
Fully computer-based modelling of (national) decarbonised energy systems (incl. end-use technologies) with the objective of minimising economic costs, taking into account regional feasibility and security of supply as well as political framework conditions.
Transparent evaluation of strategic and political options for action in the context of the holistic energy system - e.g., effects of politico-legal bans / incentivisation of certain technologies on macroeconomic costs, future market prices and capacity requirements of other assets.
Feasible and efficient development paths safeguarding security of supply on every step from today to the sustainable, decarbonised energy system of the future – guidelines for energy policy and business strategies at national and regional level.
Model-based and qualitative development of economically optimized ramp-up and upgrade plans for future-proof district heating infrastructure, integrating volatile energy sources and making efficient use of scarce resources.
Transparent assessment and economic analysis (return on investment, total cost of ownership) of innovative technologies and infrastructure investments in the contexts of future energy and pricing systems, and optimized dispatch.
Model-based derivation of resilient strategy options in the face of uncertain external developments on the international energy and commodity markets.
Security of Supply
Since the beginning of the energy market liberalisation, we have been advising state actors, energy supply companies, infrastructure operators and further stakeholders in the field of tension formed between the energy market liberalisation and security of supply.
The crucial importance of security of supply became apparent after the start of the Russian war of aggression on Ukraine. Our support in the procurement of a national gas reserve or the development of detailed emergency plans ensures effective and efficient security of supply from the corporate to the national level.
Design of platform-supported tenders (incl. product design, drafting of all contractual documents and general terms and conditions) and implementation of automatised contract awarding with the aim of minimising overall costs while maximizing storage availability in an emergency situation (optimisation model).
Detailed development of energy control measures for the management of supply disruptions (sequence of deployment, triggers, process, responsibilities, data flows, preparatory tasks, monitoring tasks, penalties) on the basis of the applicable legal framework and established market mechanisms.
Development of models and KPIs for continuous monitoring of national/regional security of supply situation considering the fragmentation of responsibilities as a consequence of market liberalisation and unbundling of market roles.
Development of national outlooks and forecasts, risk scenarios and mitigation integrating infrastructure, market and storage developments.
Clarification of market role responsibilities and development of functional cooperation models to ensure secure national gas supply within the current (and continuously evolving) legal framework.
Digitalisation, Artificial Intelligence and Machine Learning
Without high-frequency data exchange, corresponding background processes and the availability of big data, the energy transition might not succeed. Data is turning into a strategic asset, yet also requires completely new and powerful data mining capabilities. We support the necessary digital transformation of the energy industry and its business models with customised consulting services that benefit from a wealth of experience and uncompromising quality awareness.
Development of prototypes, improvement of forecasts, evaluation of economic potential and definition of implementation strategies – our expertise in the energy industry is perfectly complemented by state-of-the-art data science.
Development and implementation of forecasts for energy-related and commercial time series with classical statistics models and modern machine learning algorithms.
Development of solutions for the realisation of substantial, economic optimisation potentials of European capacity and tariff models in the areas of capacity booking, utilisation and marketing.
Prediction of compressor energy consumption for any operating points based on historical measurement data in order to model operating strategies for mixed-unit parks of electric and gas-driven compressors and identify of the least-cost, most energy-efficient or lowest-emission operation
Technical design of digitalisation strategies to support processes in technical and commercial dispatching, balancing group and metering data management, and billing for trading, storage, and network companies. Our services range from the definition IT requirements and tendering to implementation support by stringent project and quality management.
Market Model Design and Regulation Management
Well functioning energy markets need clear framework conditions. Our projects with European and national regulatory authorities and system operators have laid the basis for competitive and efficient energy markets in numerous countries. Years of working with market participants from all levels of the value chain have given us in-depth understanding of the requirements from varying perspectives. This enables us to ensure the practicality and effectiveness of new market rules while also creating acceptance among stakeholders as a basis for timely implementation. The large number of projects in a wide geographical scope (Germany, Austria, Ukraine, Georgia, Republic of Moldova, Switzerland, Liechtenstein, Turkey) has given us a wealth of experience in best practices.
Concepts and market rules for the establishment of gas markets (principles, market roles, contractual relationships, data exchange) and preparation of associated contracts (grid connection, grid access, balancing, ...) considering the requirements of the third EU internal market package as well as national specifics.
Preparation of concepts and expert opinions on the (cross-border as well as domestic) integration of different market areas, performance of cost/benefit analyses as well as analysis and evaluation of the implications for security of supply, energy exchanges, storage markets and transport capacities.
Development of comprehensive target models for system operators (detailed business processes, IT target architecture and system requirements, organisational structure and departmental specifications, contractual relationships) in accordance with the requirements of the third EU internal market package, incl. carrying out target/actual analyses and implementation planning.
Design of monitoring models to supervise the continuous functioning of the European gas wholesale markets for ACER incl. historical analysis.
Support for exchange operators entering national markets.
Preparation of concepts and stakeholder training for the implementation of gas exchanges in emerging markets.
Development of entry/exit capacity models, capacity products and tender designs for network and storage maximizing value generation whilst fully considering technical requirements/restrictions.
Design of storage and network tariff systems (including reference price methods, entry/exit split, multipliers, discounts, inter-TSO compensation) and determination of tariffs based on network data, capacities, and costs.
Definition of functional and technical IT requirements of capacity marketing processes (e.g., UIOLI, VIPs), nomination/data exchange (e.g., DZK, data formats), metering (e.g., substitute values, OBA), balancing and grid control (e.g., schedules, control energy).
Specification of related contractual provisions.
Energy-Economic Analyses and Expert Opinions
Fact-based decisions are of central importance to us and our clients. Within the framework of energy economic expert opinions, we create sound foundations for complex legal assessments, investment decisions and strategic direction choices. Our extensive knowledge of the European energy markets enables us to ask the relevant questions and to analyse issues from different perspectives. We like to think out-of-the-box and place great value on precise, comprehensible argumentation that is consistently thought through from start to finish. Our clients use our expert opinions for internal as well as external purposes, depending on the specific application.
Development of promising lines of argumentation and energy economic expert opinions on long-term supply, storage and transportation contracts to support our clients in arbitration proceedings.
Conducting regulatory due diligence for energy company M&A transactions based on current and expected legal-regulatory framework and data room analyses (including red-flag reports, validation/creation of info memoranda).
Integration of regulatory mechanics in the valuation models (revenue model) and resolution related questions from clients and financing partners.
Evaluation of ecological and economic aspects of investments in the energy industry, e.g., use of waste heat sources for district heating supply, considering different pricing principles (full costs - marginal costs – opportunity costs).
Conducting of economic cost-benefit analyses on the basis of extensive data analyses, econometric calculation models and qualitative considerations, e.g. in connection with market area mergers, implementation decisions of measures, investment decisions and ex-post analyses to provide proof of success.
Analysis of portfolio management strategies and processes, verification of compliant operations based on historical trading data and formulation of recommendations.
Analysis of the risk management policy manual and risk management/risk reporting processes, verification of implementation via actual information flows and formulation of recommendations.
Customised Optimisation Models
Current optimisation problems in energy industry quickly exceed the limits of standard software. We create custom-fit energy-economic, value- and efficiency-maximising optimisation models for our clients and identify efficient model-based solutions through in-depth understanding of the energy industry & mathematics. The answers are provided at the detailed model level and concisely as a management summary.
Design and implementation of optimisation models to award energy procurement contracts with high product and contract complexity (e.g., strategic gas reserve, storage products, structured/flexible supply contracts) considering legal, technical and economic framework requirements.
Optimisation models to determine the most economic and resilient energy systems fulfilling high standards of security of supply - from local district heating systems to national energy strategies.
Optimised composition of diversified portfolios based on expected returns and risk parameters.
Application of optimization and AI/ML algorithms in technical dispatching to minimise compressor costs (start-up costs, energy costs, material wear, ...), reduce emissions and maximise energy efficiency (including waste heat utilisation) by means of artificial intelligence.