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NextEra Insights Inc.

Services for the energy producer

Energy Producer is facing unprecedented challenges and opportunities in rapidly evolving markets. Generation fleet is changing with coal fired units retiring, and wind and solar powered units being added at an increasing rate. Natural gas fired combined-cycle units are now increasingly serving as base while natural gas fired simple cycle units that usually served peak demand are now needed at times of lower wind and solar powered generation as well.
Carbon pricing adds uncertainty to both supply side and demand side economics. Carbon pricing can change supply merit order i.e. long run and short run marginal cost of different type of generation units. Carbon pricing is also expected to change demand by driving electrification and impacting local, provincial/state, or national economies in different ways.
Depending on jurisdictions' enablement and support, Consumer maybe able and willing to self-supply a significant portion of its needs and even participate in the markets as a Producer.

All these considerations increase the number of scenarios and sensitivities the Producer must examine before investing in new generating units and optimally offering and dispatching its existing fleet of generating units.
Additionally with commoditization of energy and associated increase in complexity and sophistication, the Regulators are monitoring compliance with market rules more closely than ever before.

NextEra Insights supports energy producers in creating investment and operation policies, procedures, and processes. Our Payback IndexTM tool visualizes value of different portfolios and simplifies decision making.
We can lead of assist the energy Producer in following areas:

Capital investment

There are significant economies of scale which means generation investments are large and lumpy. The payback period depends on a number of factors, most of which are outside Investor’s control. This requires a very thorough analysis to determine risk adjusted returns under a variety of credible scenarios and sensitivities on a probabilistic basis.

Market participation

Market participation is the primary source of revenue for Producer. Most jurisdictions have capacity, energy, regulation. supplemental, and standby markets. Additionally services like black start, wires alternative, and fast ramping are competitively procured on a periodic basis. Producer must maximize revenue from all these streams.

Bi-lateral commercial agreements

Producer has an opportunity to generate revenue through bi-lateral agreements outside of markets. For example Producer maybe able to monetize waste heat or captured carbon. Producer maybe able to enter into power purchase agreements with large corporations that are looking to hedge or minimize their environmental impact and energy bill.

Environmental market participation

Energy production is subject to environmental standards such as emission limits on SOx, NOX, mercury, and particulate matter. Recently carbon emission has been priced by many jurisdictions which has created markets for carbon emission capture or reduction. Producer can generate significant revenue by optimally capturing this revenue stream.

Generation products for consumers

Large or sophisticated Consumer can install generation at its site. Producer can leverage its expertise to partner in these investments. Producer can then leverage its economies of scale and provide operations and maintenance services.


Producer is subject to multitude of regulatory and legal obligations from environmental agency, economic regulator, market surveillance administrator, system operator, markets, industry, suppliers, and direct customers.

Government relations

Government policy, legislation, regulation, direction, or program drive Market Surveillance Administrator or Regulator’s rule or decision, Operator’s standard or tariff, and Market’s design or operational ruler. A change in any of these parameters can have significant impact on the Producer. Producer must closely watch all such developments and actively participate to provide its unique perspective to the decision makers.