Future corporate strategy for a cantonal energy utility in Northwest Switzerland

Liberalization of the electricity market presents fresh challenges to Swiss regional distribution companies. At the same time, major opportunities for growth open up for suppliers in the new business fields of heat supply and telecommunications. Against this background, it was the task of Fichtner to review the strategic road map of the enterprise as a whole and to devise, or further develop, specific strategies for each business activity. This was done within the framework of thoroughly prepared workshops. In doing so, Fichtner’s sector-specific strategy development concept was successfully applied, which combines the methodologies of a breakdown into business segments with investigations of sectorial structures and SWOT analyses. By defining strategic factors for success, this results in implementation of strategy projects.

Risk management of power networks, Switzerland

The power utility, Centralschweizerische Kraftwerke AG (CKW), is continuing to expand its corporate risk management function in the sector of power networks and technical services. The objective is balanced and targeted control of risks in the power networks. The concept developed jointly with Fichtner takes due account of CKW’s knowledge of disturbances and supply failures with their impacts on customers. Data relevant for risk management is systematically modeled for the network objects, evaluated, and transferred to a system and risk control function. Regarding asset management, risk management will provide a basis for developing the maintenance strategy, with the aims of security of supply, defined facility availability and minimum overall costs. The entire process was documented in a risk manual, that also contained the working practices and adaptations of the organizational structure needed for risk management.

Market launch of a Swiss energy utility in Germany and Central/Eastern Europe

A Swiss energy utility has decided to expand its presence in Germany as well as in Central and Eastern Europe, for which purpose its activities in the sectors of generation and marketing are to be expanded. For generation, alongside participation in power plant projects, the enterprise is also considering developing its own operating sites. For these power plant projects, Fichtner is providing support for selecting projects and partners, evaluating proposals, and assisting during negotiations. Site search and selection is conducted jointly with our parent company, Fichtner. For sales and marketing, we provide support for the German speaking region by setting up cooperative partnerships, also across sectors, and optimizing the respective development structures.

Study on ensuring availability of specialist personnel for safe operation of nuclear power plants in the EU for the European Commission

Because of decisions taken on a political level in some EU member countries to phase out nuclear power, the disciplines of nuclear physics and nuclear engineering are losing their appeal in both the job market and university education. For this reason, the European Commission became concerned about a pending shortfall of qualified engineers for maintaining the safety of nuclear facilities in the EU and awarded a contract to Fichtner to examine this issue. Taking as a starting point the core competencies needed for safe operation of nuclear power plants, our experts examined how staff needs are presently being met in member countries in which nuclear facilities are operating. Interviews were held with staff of nuclear power plant operators, licensing and regulatory authorities, and authorized inspection agencies. By analyzing the training offered and assessing the development of nuclear power in each member country, the future supply of nuclear engineers was set against the anticipated demand. Ongoing international programs and collaborations for safeguarding competency in nuclear technology and know-how transfer were presented and evaluated. On the basis of the investigation results, we drew up recommendations for the future orientation of national and international initiatives and programs to ensure the demand is met for qualified engineers for safe operation of nuclear power plants within the EU.

Loan Facility for Renewable Energies and Energy Efficiency in Serbia

KfW intends to establish a regional Facility for Renewable Energies and Energy Efficiency in Serbia. The aim of the facility is to promote investments in energy efficiency and renewable energy projects. The Program will be composed of a Loan Facility and a Technical Assistance Facility. The technical assistance to be provided by Fichtner comprises tasks related to the design of the loan facility (eligibility criteria definition, sector analysis) as well tasks related to support local banks in the evaluation of projects and to support project developers in the elaboration of bankable project documentations. The program also contains measures to raise the awareness for energy efficiency and the use of renewable energy sector within the banking and municipal energy supply sector. Fichtner will provide local and international expertise on all technical and economic aspects to be addressed under the facility.

Waste management education and information campaigns – EU Phare, Romania

With the aim of strengthening the technical and practical capabilities of Romanian environmental Authorities in implementing waste management regulations, Fichtner is conducting education and information campaigns for both the general public and for the institutions concerned. These focus on segregated collection of packaging wastes, oversized waste items, discarded tires and spent batteries. Following a comprehensive review of the current situation for all relevant institutions, Fichtner is working out a strategy for public education and is drawing up an action plan for the campaigns to be implemented on national, regional and local levels. Also seminars, working groups and training courses on waste management in general as well as segregated waste collection are organized for local public Authorities, environmental consultants and the general public.

Institutional strengthening of CFR Electrificare, Romania

The newly established company, CFR Electrificare, a subsidiary of the Romanian state rail company, CFR, is responsible for operation and maintenance of technical facilities for power supply to the train operators and other electricity customers, for example, overhead contact lines, substations and LV networks. Fichtner is assisting Electrificare in setting up and improving operating practices. Thereby considered are, among other things, business planning, environmental management, asset management and contracting. Fichtner is also providing help in applying for a license as an electricity distribution company and for approval of tariffs by the regulatory authority. During a study trip, visits were paid to comparable companies in Poland and Switzerland.

Market and feasibility studies for a 220 MW combined cycle power plant, Cyprus

During an initial phase, on behalf of a private investor Fichtner is preparing market and feasibility studies for a 220 MW combined cycle power plant. Apart from optimization of the plant to match local conditions, this encompasses an analysis of the local electricity market. Additionally, a financial model is being prepared and a sensitivity analysis conducted to simulate various plant configurations as well as cost and revenue scenarios. During the second phase, Fichtner is supporting the investor in preparing the documents needed for obtaining a license from the national regulatory authorities as well as in compiling information for banks that are to be co-opted for project financing. In this connection, initial talks are held with gas suppliers and plant component vendors, regulatory authorities and interested banks.

Due diligence for a gas supply company, Turkey

On behalf of a group of international financing institutions, Fichtner prepared a comprehensive due diligence report on a major Turkish gas supply enterprise. In detail, Fichtner checked the adequacy of the capital investment plans to meet future needs, drew up projections of operating costs, and produced a demand forecast. Also included in the investigation was the regulatory environment and thus relevant tariff structuring issues. Alongside technical and commercial aspects, environmental impacts, too, were reviewed. This investigation was conducted on the basis of data room documents as well as field reconnaissance and meetings with company staff to discuss technical issues.

Development of maintenance excellence in gas companies, NIS countries

With the aim of upgrading security of gas supply to Europe, the European Commission is supporting projects for setting up a safe and reliable infrastructure in ten countries in Eastern Europe, in the Caucasus region and in Central Asia. On the Commission’s behalf, our experts are investigating modernization of servicing and maintenance in the respective gas transportation companies to bring these in line with best practice in the EU, with the intent of introducing international standards and operating procedures. Our services cover organizing training courses on senior management and operative levels, defining standards, and support in compiling maintenance manuals. Our team is preparing tender documents for introducing a computerized maintenance management system, and is providing support during its implementation.

Analysis of legal framework for district heating tariffs in Moscow, Russian Federation

As one of the biggest electricity and heat utilities in Russia, Mosenergo supplies Moscow and its region with district heating. Under a contract with the European Bank for Reconstruction and Development  (EBRD), Fichtner reviewed the present legal framework for district heating tariffs in Moscow and worked out alternative proposals. The study covers a detailed analysis of current legislation on district heating services as well as the regulatory framework for Mosenergo to stipulate its district heating tariffs. On this basis, gaps and weakpoints in the technical, institutional, financial and legal framework was identified, and alternative forms for regulation of district heating tariffs proposed.

Study on 'reinforcement of the power distribution network and extension of Bishkek transformer station', Kyrgyzstan

In the first phase of the project, the study includes an estimate of the costs with a discussion of the financing options, a national economic cost-benefit analysis and commercial appraisal of the project together with an analysis of tariffs. The second phase involves project formulation and a feasibility study as well as planning of the technical design and the implementation and operating concept.

Financial restructuring and company reorganization in the electricity sector, Bangladesh

In view of the financial situation of electricity companies in Bangladesh, there is an urgent need to secure their financial survival and to restore their credit standing. As part of a comprehensive plan of reform for the electricity sector, this project focuses on measures for financial restructuring and reorganization of all companies involved in electricity generation, transmission and distribution. Measures have been recommended for restructuring company accounts as well as for cutting costs and increasing revenues. To assess the impact of these measures on the companies’ financial performance and on government finances, our team of experts developed in the field a comprehensive financial model for the entire electricity sector in Bangladesh.

Fact-finding mission on disposal of hospital waste, The People's Republic of China

Fichtner was awarded a contract by KfW to undertake a fact-finding mission in the People's Republic of China in order to establish the situation with regard to the disposal of hospital waste. Planned projects for the disposal of hospital waste was subjected to an initial appraisal, involving an evaluation of both the technology and also the accompanying management measures. The project was rounded off by the creation of a time schedule for implementation of the measures as well as by an estimate of the costs.

Merger of two network operators with a total of 900 employees, Germany

Fichtner was awarded a contract to merge two network operators owned by the same holding company. Under this project, from the previous staff-line and procedures organizations, a fully new organizational structure was developed. This encompassed, alongside the shared services area, above all organization in the future of asset management, asset operation and asset services. Furthermore, in each of these areas, substantial synergy potentials were identified and realized and, in connection with the merger, a novel controlling and outsourcing model was conceived and implemented. A plan of action was devised for finally putting the merger into effect. We provided flanking support for the merger up to its successful completion.

New project management system for a gas supplier in Germany

For a gas supplier in Germany, for the around 200 projects per year with a total volume of 200m euros expected in future, only half the required project managers can be assigned from within the company. To make good this shortfall, external project managers are to be deployed so that the company’s own staff can handle tasks as multi-project managers. Fichtner was awarded a contract to define the functions of project management, specify jointly with a project team of the gas supplier the internal and external roles and responsibilities, and structure the tendering and contract award process. Additionally, our experts compiled a project manual, drew up tendering and contract documents, and devised a complete training concept for outsourced and in-company project management. With our “train-the-trainer” concept, the gas supplier is able to provide training without outside support.

Launch of a new competitor onto the energy market

With the inception of competition for electricity and also gas supplies, companies are increasingly deliberating on how they, too, could incorporate this business sector. In this connection, Fichtner was retained for a project in which a very successful direct marketer, previously active particularly in trading and telecommunications, was to be launched onto the electricity market. The approach that suggested itself was that the direct marketer would work customers at the front end by marketing and sales services, as the company possesses the relevant know-how that up to now has been lacking in the electricity market. The complete asset services sector could either be handled by the company on its own or in a partnership that could lead to a joint venture. This means appropriate partners have to be found who contribute the required experience in energy purchases, portfolio management, risk management and invoicing.

Market study on sewage sludge disposal for an international central services utility, Germany

Due to pending changes in the law governing sewage sludge disposal, substantial opportunities and risks are created for operators of wastewater treatment plants and for disposal services utilities. Fichtner was retained to determine, within the framework of a study, the present status of sewage sludge disposal in Germany and make a qualified projection. Because of the differing situation in each German federal state, a differentiated regional approach was necessary. The market for sewage sludge and legislative context were analyzed, existing capacities for thermal disposal were evaluated and recommendations for entry into the selected regional markets proposed.

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