Assessing the Value of Electricity Monitoring Technology

Client

Nortech

Challenge

The client needed to understand the value of their innovative medium voltage monitoring solution to Distributed Network Operators. The objective had been to determine a price based upon value to potential clients as opposed to a cost-plus price.

Solution

CLT conducted a full review of the current regulatory environment for Distributed Network Operators and the changes to the regulatory environment. The potential costs, savings and levels of capital expenditure were analysed and quantified by DNO.

CLT, in partnership with the client, produced a set of questions to be asked of DNOs. These focused not only on the current environment but also sought insight into the likely changes to the network operator, in particular those due to the growing electrification of transport and heating and the increased use of renewable generation.

CLT leveraged its extensive contacts within the energy industry to conduct interviews with three DNOs, which were subsequently documented. Further insight had been gained from industry specialists.

Outcome

The work concluded that the client’s offer had significant potential with DNOs and that the challenges it addressed were expected to grow substantially over time. The work also concluded that the value the client’s solution addressed was not only reducing the DNO’s potential performance penalty payments, but also significantly improving the management of their overall capital and expenditure spend.

An output report was produced and reviewed with the client. The client now has the potential to explore higher value sales offers. Based on the analysis, the client understood that the value of their offer had the potential to be significantly greater than originally planned, particularly in terms of reducing the buyer’s capital expenditure.