Nichols provided the Low Carbon Contracts Company with strategic advice and expertise, bringing our experience of working with central Government to deliver major programmes of change to an organisation that sits at the heart of the UK’s Electricity Market Reform.
Challenge
The Low Carbon Contracts Company was set up to function as a secure, independent counterparty in the Contracts for Difference scheme and, (via the Electricity Settlements Company), the Capacity Market scheme; each one critical to the UK’s drive towards low carbon electricity and energy security.
The Government’s key focus of putting Net Zero at the centre of economic growth will drive opportunities for the Low Carbon Contracts Company to widen its schemes and influence on shaping the UK’s energy future.
The Low Carbon Contracts Company’s mission is to implement and develop electricity market schemes by providing independent expertise, insight and leadership and it has developed a role as a trusted advisor to Government and regulators. The challenge for the Low Carbon Contracts Company is to develop and grow its role within a landscape of significant change.
Experience
Nichols was engaged to undertake a preliminary review of options for the provision of a range of core services in the context of the forthcoming Carbon Capture, Usage and Storage schemes. The output of which would be presented to the Low Carbon Contracts Company Board to assist in defining its future strategy.
Drawing on our experience of strategic options appraisal, we employed a staged approach to delivery, initially determining the available delivery models. We adapted proven public sector appraisal methodologies to fit our client’s requirements and provided a simple, powerful set of assessment criteria aligned to the company’s strategic objectives.
We developed a heatmap model that illustrated the relative risks and opportunities of each pathway against the assessment criteria. We mapped out the critical timelines, dependencies and milestones to enable the Board to identify appropriate timings for next steps. In addition, to support the wider client team in further developing the preliminary findings, we provided a detailed report which was fully aligned to the heatmap.
Benefits
We used a collaborative and open approach with Low Carbon Contracts Company personnel to ensure that they were fully engaged in the process. Based on our extensive experience, we were able to bring our insights from working on comparable assignments across industry and provide a series of recommended next steps to assist the client in progressing one or more delivery models.
Nichols provided clarity of the different delivery models available to enable informed decision making. We raised important assumptions to be tested and recommended next steps to assist the client in progressing to the selection of a preferred option. By creating a bespoke set of assessment criteria, we ensured that the review was fully aligned to the client’s strategic objectives.
Our work has enabled Low Carbon Contracts Company’s Board to identify foundational activities to help define its future strategy and realise its strategic objectives over the next ten years.
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