Strategy and Management Consulting
Strategy
London Economics International, LLC’s unmatched understanding of the evolution of competitive power and infrastructure markets enables the creation of tailor-made solutions to each client’s strategic challenges. Our approach is based on fundamental economic drivers, shaped by a detailed understanding of regulatory and market structures.
Unlike generalist strategic consultants, LEI has played an integral role in the development of competitive power markets worldwide. Our ability to provide relevant industry benchmarks helps companies adjust their practices to improve performance. We know how unbundling affects revenues, how gaming behavior impacts prices, how contracts can be struck to incentivize operators, and how to convince regulators to provide a level playing field. Each of these elements can impact future profitability.
As more and more parts of the value chain in the electric power sector become open to competition, the ability to draw upon experience in other industries becomes more important. Through its global strategy practice, LEI is able to integrate knowledge from many industries in the infrastructure and service fields. From telecommunications to healthcare, LEI has carefully tracked the dynamics of competitive transition. Cross-fertilization among industries allows us to provide clients with wider horizons and a greater understanding of international best practices.
We assist clients in addressing some of the most pressing strategic issues in the industry, including:
- Should we take a proactive or defensive approach to restructuring efforts within our service territory? What are the implications of unbundling on corporate structure?
- What is the role of wholesale power marketing operations in developing risk management capabilities? How does volatility in wholesale power markets affect profitability?
- Do we need to have an international investment strategy? How can we assure that lessons from foreign markets are diffused throughout our organization?
- How can we cost-effectively assemble profitable national and regional generation portfolios? How important is critical mass to future profits?
- Is development of a retail supply operation likely to be profitable?
- How will renewables and climate change impact our business?
Environmental, Social, and Governance (ESG) Issues
In recent years, institutional investors and company management have rapidly adopted ESG frameworks in response to the changing global business culture. Factors such as extreme weather events, air pollution, aging population, equality and diversity, and transparency, have become essential considerations for policymakers and businesses.
LEI applies exhaustive knowledge and experience in the energy and infrastructure industries to help clients meet their ESG goals. Specifically, we provide a range of ESG-related services, including creation of development plans to meet ESG goals, ESG implementation strategies, benchmarking against ESG frameworks, compliance analysis, and securing financing for net zero large-scale investments. Our ESG capabilities are not limited to the services mentioned; the firm has worked on a range of topics that are aligned with each of the three pillars of ESG.
LEI has experience in carbon emission credits, helping entities meet their climate goals, and procuring renewable energy and renewable energy credits. Through careful cataloguing of a client’s Scope 1, Scope 2, and Scope 3 emissions and effluents, LEI can provide high-quality but cost-effective plans to help clients transition toward low-carbon energy usage. In addition, we operate a suite of proprietary quantitative modeling tools to forecast carbon credit and renewable energy credit prices. With regard to emissions, LEI can provide life cycle greenhouse gas emission analysis and help clients meet their emission reduction goals. LEI also has direct experience advising on development of new clean energy sources, giving clients insights into project costs and timelines.
An important part of the social aspect of the ESG is to maintain and foster sustainable relationships between the community, the employees, and the overall firm. This helps increase the social license for large-scale infrastructure projects to operate. Through our extensive experience working with various levels of public entities, LEI can provide strategy advisory services and benchmarking to help clients meet and align with the community, government, or regulator’s goals. LEI’s modeling tools help clients quantify the social benefits their projects bring, including employment, tax revenues, and economic growth. In addition, we have experience in assisting companies with balancing their private value with public benefits, helping to create win-win solutions for stakeholders.
LEI principals have worked directly with C-suite executives to help companies adjust their practices to improve their governance. This includes assessing organization charts, reporting lines, incentive schemes, and independent oversight arrangements. By developing a comprehensive strategy and development plan, LEI is able to assist companies in reshaping their structure, craft appropriate oversight procedures, monitor and identify key reporting stakeholders, and assist in designing reports to meet ESG frameworks. Typical products include development of ESG dashboards, data tracking and maintenance plans, and job descriptions for chief compliance officers.