ECONOMIC CONSULTING ASSOCIATES

ECA has been advising regulators, governments, investors and international finance institutions since its start in 1997. We apply economic principles and industry knowledge with best international practice, complemented by a rigorous quantitative capability to advise on all key aspects of electricity markets. Our expertise includes the development of regulatory frameworks, setting of tariff levels and structures, designing markets and associated market rules and conducting due diligence studies. Our work also covers modelling of power dispatch, market price simulations, and risk analysis. Over recent years we have strengthened and developed our experience in rural electrification power delivery mechanisms. This includes developing rural electrification master plans, reviewing the economics of different business models and identifying barriers to private sector participation.

A selection of our projects in the Electricity Sector:

European electricity forward markets and hedging products

Our team of electricity market experts was selected to advise the Agency for the Cooperation of Energy Regulators (ACER) on the regulation of forward electricity markets. In particular we investigated the different risk hedging tools in forward markets and what role ACER should play in the regulation in light of increasingly interconnected European electricity markets.

Greece: methodology for allowed revenue of electricity transmission

The Regulatory Authority for Energy (RAE) appointed ECA to provide support regarding an interim methodology for setting the allowed revenues for electricity transmission, in preparation for the privatisation of the transmission system operator (TSO) in Greece.

Review of tariff plan and policy, Zimbabwe

ECA provided advice to Zimbabwe Electricity Supply Authority on the methodology for setting tariffs in the context of rapid inflation and the electricity market reform policy.

Advisory services to Electricity Regulatory Agency of Vietnam

We provided advisory services to the Electricity Regulatory Agency of Vietnam (ERAV) on the implementation of power market reforms in accordance with the Government’s roadmap for the sector.

Market due diligence for power generation projects in Turkey

ECA acted as lenders’ advisers to assess the current and future regulatory framework in electricity and gas, long term scenarios for the electricity market including plant dispatch and market prices.

Market model, tariffs and institutional capacity support, Kosovo

We assisted the Energy Regulatory Office (ERO) in developing the large quantity of secondary legislation, codes and regulations required to implement a new regulatory framework and competitive electricity market.

Legal and regulatory framework and establishment of regulator, Cyprus

ECA was involved in drafting of the primary law and the main regulations (market rules, tariffs, licensing) for harmonising the electricity sector of Cyprus with the EU.

Design of hybrid min-grid programme, Kenya

ECA were engaged by KfW Development Bank to assist the Government of Kenya in promoting the development of hybrid mini-grids (PV-/Wind-Diesel). The objective of the assignment was the preparation of an implementation-ready project design for an off-grid rural electrification program (with an initial focus on three pilot mini-grids). The project design determined the technical, financial and economic viability of proposed hybrid mini-grids schemes.

Retail electricity tariffs, Nigeria

We developed marginal-cost based tariff structures and recommended staged tariff increases, automatic adjustment mechanisms and lifeline tariffs.

Electricity tariff study, Cyprus

ECA was appointed by the Electricity Authority of Cyprus (EAC) to design new tariff structures and levels for the 2014-2018 period covering the entire vertical chain of service provision (generation, transmission, system operation, distribution and supply).

Worldwide: the potential for alternative private supply (APS) of electricity in developing countries

ECA worked with the IFC to determine the key drivers of and barriers to the expansion of the Alternative Private Supply (APS) of electricity in developing countries which do not require coordination through centralised grids.