Implementing the province's energy strategy
A medium-sized border province soon recognised the considerable social and economic impact of the Climate Agreement. The provincial authorities wish to remain in control of the implementation of the energy transition and have asked PwC for support in defining and prioritising the efforts relating to the various climate tables. In line with this, the authorities have also asked for our help in getting involved in the negotiations at the right time and with the right information, so that the interests of the province are optimally promoted and ultimately guaranteed too in the agreements. We also helped the province to identify the expected social impact (e.g. on employment per sector), the economic impact (e.g. on the contribution to GDP) and the environmental impact (such as the expected required CO2 reduction per sector). In addition, we provided a qualitative assessment of the main financial risks for the province.
Developing innovative Power Purchase Agreement
As of 2030, a large government organisation with a tender obligation wishes to perform its tasks in an energy-neutral manner. That is possible with a wind farm of 100 Megawatt on its own land. PwC developed an innovative Power Purchase Agreement in which the market is asked to develop and operate the wind farm and to supply green electricity to the organisation on competitive conditions for the next 25 years. In addition, due to cooperation with public stakeholders, all agreements provide extra clarity about the preconditions, with respect for everyone's role and interests. The government wants to use its position as ‘initiating client’ to set the market in motion. The project is an excellent example of how parties that are obliged to tender can also meet their own energy needs in an innovative way and for the long term.
An overview of the return on investment in energy transition
A cooperative venture consisting of provincial, municipal and industrial parties has asked us to develop their plans for the reduction of local greenhouse gas emissions. For each proposed measure, we make clear what the intended reduction is, what costs are involved and what social benefits are associated with it. Together with the public and private parties involved, we are looking for subsidies, guarantees and loans to finance the plans. By means of this approach, the province is fulfilling its responsibility to contribute to the climate objectives.
Development of off and onshore wind farms
A medium-sized municipality wishes to generate 25% of its energy needs sustainably, including by means of a new wind farm on an existing business park. The municipality is working with a development partner on a plan that will allow both residents and the local business community to participate in the project. An appropriate investment model must be put in place for this purpose. In addition, the municipality wants the electricity produced to be purchased mainly by its own citizens and businesses. And finally, the remaining financial return of the turbines must go to a local sustainability fund. The municipality has asked PwC to assess the financial aspects of the plan drawn up by the development partner. On the basis of the knowledge we have built up in the Netherlands and Germany on the development, structuring and financing of off and onshore wind farms, we have drawn up an extensive set of benchmark data. Using this benchmark set, we were able to quickly provide insight into the solidity of the development partner's business case.
Heat supply by means of geothermal heat
A large university in the Netherlands is aiming to provide its campus with sustainable heat for the next 30 years. The university therefore wants to develop a geothermal project and connect it to the heat grid. In a geothermal project, energy is obtained by using the natural heat pockets that are located several kilometres deep in the earth.
The university's ambition is to use this project for research, education and development. Real-time measurements and more advanced data analysis will provide new insight into what goes on deep underground. Consequently, the project will make a substantial contribution to the further development of knowledge regarding the application of geothermal energy in the built environment. The project is seen by the parties involved as helping to define the heat transition in the Netherlands.
The university has asked PwC to help with the business case, the financial model and the financing of the project. Thanks to the efforts of our international renewable energy team, the university will be able to compare its approach to similar projects at home and abroad.