Powering the economics of energy

Governments, regulators, energy companies, and their financial and legal advisors come to us for advice. They draw on our expertise in strategy, regulation, valuation, and competition policy. We are at the forefront of thinking and practice in energy and environmental economics.

A world of energy knowledge and experience

We help governments and regulators devise better policy and make more informed regulatory decisions. And we help businesses assess the commercial implications of these policies so they can respond effectively. 

Our work touches on all aspects of energy markets in Europe and beyond, with experience in more than 50 countries. We take a holistic approach, using specialists in competition, finance, due diligence, and dispute support.

Commercial strategy

Government and regulatory intervention is widespread, often driven by fundamental environmental challenges.  In this context, strategic decision-making is paramount, requiring a deep understanding of market dynamics and the associated risks and opportunities.  

Examples of these risks and opportunities include:

  • European market integration
  • Changing ownership models for energy infrastructure
  • Pressures on financial management and operational efficiency
  • The drive towards carbon-free energy

We combine our wide geographical experience with a clear understanding of market drivers and rigorous modelling to help clients understand their markets and develop strategies based on sound economics. By clearly drawing out the sources of value and risk, we support clients in their commercial and investment decision-making.


We advise regulators and companies on how best to introduce, implement and adapt to regulatory frameworks.

Our experts have been shaping global regulatory thinking for decades - from the first price control reviews on newly-privatised industries in the UK, to the introduction of new regulatory regimes all over the world.

Our advice is always given with a clear understanding of the wider context. Because we work for both regulators and regulated companies, we’re trusted to be objective by all sides – and our clients benefit.

By using our expertise in behavioural economics, we help clients find new solutions to regulatory problems. Changing outcomes in energy regulation requires a deep understanding of the economic and psychological drivers of behaviour, both by customers and market players.

Read more about our regulation work.

Market design

Designing energy market institutions can have far-reaching implications - from incentivising efficiency in production and consumption, to attracting and sustaining private investment.

When designing effective and competitive market institutions, policymakers and regulators must appreciate the incentives of various stakeholders and understand the market structures and mechanisms that will deliver them.

We have experience in all aspects of energy market design, having advised private companies, public institutions and regulators across Europe on issues ranging from:

  • unbundling and restructuring requirements
  • cross-border arrangements and infrastructure investments needed for gas and electricity Target Models
  • design features underlying capacity mechanisms and procurement processes

We have an in-depth understanding of the legal framework of European energy markets, and decades of experience applying it.

Climate change and sustainability

The EU target to cut greenhouse gas emissions by 80-95% by 2050 requires radical changes to energy systems. In 2050, two thirds of our energy should come from low carbon sources. Electricity and heat production need to be almost emission-free, despite higher demand.

Only a new energy model will make our system secure, competitive and sustainable. This will involve increasing electricity generation from renewable sources, using storage technologies and flexible gas fired generation as a relatively low emission way to complement intermittent renewable generation, exploring the use of carbon capture and, in some favourably disposed countries, increasing nuclear power generation.

Greater energy efficiency will help to deliver policy goals supported by new technologies such as smart metering. New approaches to heat supply need to be identified and implemented. Demand response will also increase the options for managing less predictable network flows from renewable energy. Energy taxes, tradable emissions rights, auctions for renewable generation contracts and renewable purchase obligations have all affected energy markets.

Can markets deliver affordable, diverse, secure and environmentally-sound energy supplies? How should intervention to address environmental concerns be structured? We work with governments, regulators and companies to analyse these questions and develop solutions.

Smart networks and retail solutions

A smart and flexible energy system lies at the heart of delivering secure, affordable and clean energy. Deploying smart technologies can optimise use of existing resources and reduce costs, even as more demand is placed on energy networks.

We have international experience in:

  • Smart meters, digital and network technologies
  • Maximising the benefits of better customer data
  • Changing tariffs and creating new products by understanding customer behaviour
Dispute resolution

Our dispute work ranges from strategic advice to providing expert reports and oral testimony. We are skilled not only in applying economics but also in articulating economic concepts clearly to lawyers, tribunal members and judges, using accessible language and avoiding jargon. Through our long experience in dispute work, we have also become skilled in assisting counsel to prepare the cross-examination of opposing expert witnesses.

We have been retained across a number of jurisdictions to provide advice on all aspects of litigation and arbitration proceedings, commercial and investment disputes, judicial reviews and regulatory appeals.

Read more about our dispute resolution work.

Investment and transaction support

Climate change targets are driving ever-increasing volumes of investment in renewable energy. Integrating intermittent renewable energy sources on the grid means investment is needed in grid reinforcement, flexible generation and energy storage.

We advise regulators, networks, generators, suppliers, and investors on issues around investment in current and future generations of energy assets. Our approach is defined by economics. We blend this with innovative thinking, quantitative techniques, financial modelling, and sector expertise.

Our significant regulatory and commercial expertise, coupled with cutting-edge analytical techniques (including dispatch modelling, financial modelling, and cost of capital estimation) allows us to play a key role in conducting commercial and market due diligence of energy assets.

We also support private equity firms and other finance professionals on transactions in the gas and power networks, and both renewable and conventional power generation.

Hydrogen cost modelling

The development of the hydrogen economy is one of the key drivers for achieving ambitious decarbonisation targets. However, from today’s perspective, there are large differences in projections about H2 costs. Any meaningful forecast of levelised costs of hydrogen (LCOH) must reflect important premises such as the required hydrogen delivery profile from consumers, availability of infrastructure, local renewable profiles and specific financing costs.

With the help of our optimisation model HyLO, we can determine the costs of hydrogen under these scenarios.

Example hydrogen applications for different demand profiles include:

  • Highly integrated energy-intensive industry production (constant demand): costs for a baseload provision of hydrogen, for example for industrial processes; or
  • A hydrogen power plant (varying demand): costs for a specific fluctuating demand profile (e.g. to balance renewable electricity feed-in).

Inputs to our model include production profiles of renewable energy sources, such as wind and solar PV, as well as techno-economic parameters of the relevant infrastructure (costs and efficiencies of renewable energies, electrolysis, storage and reconversion). For a given demand profile, the model selects the optimal plant configuration from parameters such as generation, storage and transport, to determine the system costs for providing electricity and hydrogen.

Click here to read a detailed example of our work in this sector.

Market modelling

We have significant expertise modelling energy markets across Europe. Some of our particular areas of specialism include:

  • Power market modelling – We deploy a suite of proprietary power market models tailored to the needs of our clients. Our models are regularly used for price forecasts, commercial valuation of power sector assets, analysing the impact of policies in the power sector (such as capacity markets), renewable support on long-term investment and divestment decisions, or highly granular technical dispatch of single units and storage optimisation.

  • Gas flow modelling –  We have a long track record of modelling gas flows in the European gas market. And our modelling framework can be applied to any interconnected gas infrastructures worldwide. We frequently use our model in combination with our database of European gas infrastructure at a market area/transmission system operator (TSO) level.

  • Integrated sector coupling – We are able to combine our power market modelling expertise with detailed modelling of other sectors to create powerful combined models that enable us to analyse the effects of integrated sector coupling.

Auction support

Auctions have many important applications in the energy sector, for example:

  • Renewable tenders (i.e. procurement auctions) to determine the support level and allocate offshore wind sites.
  • Capacity auctions to secure sufficient power plants.
  • Coal phase-out auctions for early closure of coal power plants.
  • Day-ahead and intraday auctions on power exchanges.
  • Procurement of balancing services by transmission system to stabilise the power grid.
  • Allocation of transport rights for gas infrastructure.

We leverage our sector expertise, cutting-edge auction theory, and insights from behavioural economics to generate valuable benefits for both private and public sector clients through a diverse range of services including:

  • Tailor-made auction design.
  • Competitor analysis.
  • Valuation support.
  • Modelling of bidding strategies.

Read about an example of our work in more detail here.