ENERGY
Fiscal management of infrastructure
We help clients with…
Monitoring and managing fiscal risks from the energy sector by modelling hidden subsidies, contingent liabilities and future investment needs, creating early-warning systems, and recommending mitigation strategies.
JIRAMA Power Sector Fiscal Management Tool, Madagascar
Castalia developed a fiscal management tool to help the Government of Madagascar monitor and manage fiscal risk in the sector. The government was subsidizing JIRAMA to keep it operating, while the utility was building up arrears and unable to finance much-needed capital expenditure. Read more
Corporate Financial Strategy for Indonesia’s State Electricity Company, Indonesia
Castalia developed a sustainable corporate financial plan for PLN, Indonesia’s national power utility, including a new revenue model, and recommended legislative changes. PLN needs to finance a US$180 billion expansion of the electricity system. It relies on subsidy to cover the gap between legislated tariffs and the cost of service. The size of the subsidy that would be required in the future led financial markets to question the fiscal sustainability of the arrangement. Read more
Services
Transforming energy sectors, taking advantage of disruptive technologies, increasing resilience and sustainability, and minimizing costs and fiscal risks, while enabling ... Read more
Improving utility performance, bench marking efficiency, developing turnaround plans, reforming governance, and attracting commercial finance ... Read more
Identifying competition problems in energy markets, using econometric and market models we assess if markets are being manipulated, whether mergers ... Read more
Creating energy markets, drawing on our expertise with multiple power and gas markets worldwide to design resilient markets that ensure ... Read more
Creating regulatory systems, so that natural monopoly elements in the energy sector are fairly priced, incentivized to be efficient, and ... Read more
Setting tariffs and service standards, using bench marking databases and financial models to develop regulatory submissions. We also help regulators ... Read more
Creating systems to attract private investment to the energy sector through developing the rules and institutions to procure privately financed ... Read more
Developing master plans and integrated resource plans, using our suite of planning and optimization models to combine transmission, generation, storage, ... Read more
Developing projects and pipelines of projects, helping clients to identify sites, meet regulatory requirements and optimize project economics. We also ... Read more
Appraising and diligencing projects and brownfield investments using market and financial models to forecast costs and revenues. We determine technical, ... Read more
Blending private and public finance into viable deal structures, combining government and multilateral grants, loans and guarantees with commercial finance ... Read more
Managing transactions, carrying sustainable energy projects through to financial close, while protecting the public interest and ensuring transparency ... Read more
Expert evidence when disputes arise, providing authoritative, independent opinions on regulatory reasonableness. ... Read more
Resource management and environmental sustinability by advising on cap-and-trade systems for emissions, carbon taxes, renewable portfolio credits and other mechanisms ... Read more
Appraising electricity sector policies using economic tools to assess whether new policies will create a net social benefit. ... Read more
Reviewing performance and learning lessons from energy sectors, using comparative case studies and counterfactual analysis to assess what works, where ... Read more
