Midnight Energy Associates provides capabilities in both the power and gas sectors as and has a good understanding of the gas-to-power linkages.
Power Markets
In the power sector we have advised on integrated plans and financial implications of markets with coal, gas, diesel, wind, combined heat and power, and nuclear power plants. We therefore understand the economics, operating and disposal conditions for each type of major technology used. Our associates advise governments, regulators and investors and therefore also understand the legal and regulatory framework design for competitive electricity markets.
We have a particular specialization in security of electricity supply as this is a major issue facing many developed and non-developed electricity markets. We assess peak demand and supply conditions particularly in energy constrained markets which have a high capacity of installed hydro generation such as in Pakistan and Turkey. In some cases, acute supply constraints have required the design of capacity markets - effectively the auctioning of PPAs.
The increase in the use of intermittent technology has also required policy makers to re-think their requirements on reserve requirements and the separate design of reserve markets. Wind power generates electricity when the wind blows and in modeling terms is treated as negative demand. However when wind levels drop there is a requirement to have operating reserves that can adjust quickly to changes in supply.
Electricity transmission arrangements are also becoming increasingly important issues because in many countries with a good endowment of wind resources, the generation source can be situated at a distance to the main demand centers. This requires sufficient transmission capacity as well as the arrangements in place for intermittent resources to access and connect to that capacity.
Gas Markets
Gas market opportunities are vast as there are still many undeveloped gas markets worldwide. Countries such as Yemen are only now exploiting their domestic gas reserves for export as liquefied natural gas (LNG). Many markets such as Egypt and Yemen still require vast investment in their domestic network infrastructure for gas delivery.
A major transit corridor has been created from East to West with Turkey seen as a major bridge for the delivery of these gas resources. Sources of gas include Russia, Iran, the Caspian region and potentially Iraq. There are still requirements for pipeline investments and Central and Eastern Europe which itself could become a significant corridor of Caspian gas. However, much also depends on the investment and transit potential in Ukraine which is currently a major transit route for Russian gas.
Midnight Energy Associates provides services in the assessment of upstream gas development, pipeline transit and gas storage economics as the importance of security of supply increases.