Summary of some recent AAAcc Projects

Commodity Trading House

Risk Assessment

As part of the due diligence process during an acquisition of an energy trading company, AAAcc were engaged to conduct a risk audit of the target company to determine if:
  • The trading risks of the target company was unacceptably high and were integral to the target company's business model and so an offer target company should not be made, or
  • That the target company's trading risks were not unacceptably high when measured in the same way that the acquiring company measured risk, and so the acquisition process could continue, or
  • That the target company's trading risks were indeed unacceptably high, but they were NOT integral to its business model and so its high risk activities could be shut down or hived off

Commercial Due Diligence

AAAcc were retained to support the commercial due diligence activities of the acquisition.  Key ares of focus included:
  • How much reliance can be placed on the EBITDA forecasts provided by the target company for the purposes of valuation and making an offer?  What trading strategy will the target company undertake in the future, and how will this differs from the past?  Will this enable a significant increase in future Trading EBITDA vs. historical Trading EBITDA?
  • Was the risk appetite required in order to achieve profits forecasts consistent with teh acquirer's risk appetite, given previous concerns about  target company’s risk appetite?

Independent Power Developer

Commercial Support

An independent power generation development company wanting to develop large scale thermal generation assets in West Africa engaged AAAcc to provide commercial assistance.  Highlights include:
  • Negotiating with Governmental authorities for PPAs, Promissory Notes and Payment Guarantees
  • ​Preparing documentation for obtaining relevant permits and licenses etc.

​UK Utility




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Long Term 1/2 hourly Price Forecasts for UK Power Market

​AAAcc was engaged to develop scenario based long term GB  power price forecasts at half-hourly granularity to support the strategy development plans of the client..  Our approach was divided into 3 stages: 
  1. We led and facilitated workshops to develop scenarios 
  2. We developed modelling methods and assumptions based on the scenarios
  3. We developed the price projections and produced a report:
             - Translated the scenario assumptions into model inputs
             - Ensured scenario assumptions are internally consistent
             - Developed price projections to full half-hourly matrices for each scenario using AAAcc's  curve building tool
             - Analysed the impact of renewable generation on intra-day price volatility​​

​Review of Risk Analytics Methodology

AAAcc was engaged to review the price risk modelling approach within the client's Cash Flow at Risk models.
  • We reviewed the  price risk modelling approach against standard methodology employed in the energy market
  • We assessed the model assumptions and calibration using latest available data
  • We provided an overall assessment of the model’s fitness for purpose, listed a series of recommendations and presented a road map for implementation.

Independent Energy Trader

Operating Model for Oil Trading Subject Matter Expertise​

​Working in partnership with a major technology and consulting firm, AAAcc was engaged to provide support and domain expertise in relation to the business operating model  of the client.  Deliverables included
  • Risk Policy
  • Book Structure
  • Roles and Responsibilities
  • Process implications
  • Technology implications

International Oil Major

​Oil Trading Subject Matter Expertise

Working in partnership with a major technology and consulting firm, AAAcc was engaged to provide support and domain expertise to the partner's core team. Project highlights included:
  • Helped develop the vision to develop enhancements to front office systems deployed by the global oil trading business of a major international energy company.
  • ​Helped with the lHelped develop the vision and business case to develop enhancements to front office systems deployed by the global oil trading business of a major international energy company.

Energy Trader and Supplier

Interim Head of Risk

AAAcc was engaged to act as the internal Risk Manager on an interim basis.  Duties included:
  • Providing leadership, guide and develop a team of risk managers, modelers and risk analysts, to analyse and report to Board. Chair Risk Committee Board on all aspects of risk including business and non-business risk. 
  • Establish credible risk governance, risk management policies and procedures, risk controls and institute an enduring risk culture for systems and processes, compliance and rigorous monitoring and oversight. 
  • Develop and maintain proactive and predictive risk identification and mitigation techniques, empowering people to risk manage and work with Senior Management and all relevant firm’s personnel

Major Technology Consulting Firm

Energy Market Subject Matter Expertise and Bid Assistance

AAAcc was engaged by a major technology firm to provide subject matter expertise in energy markets and to assist in preparation of bid documents for a significant large value tender.  Highlights include:
  • ​Designed the operating model for operational services function to run Contract for Differences (CfD) and Capacity Markets (CM) for the UK Electricity Market for  buying and selling renewable electricity and capacity.  
  • Lead as the Design Authority to define all the requirements for both the CfD  and CM for the implementation of the payment and settlement system 
  • Helped ensure our Client was shortlisted in the public tender

Equipment supplier to electricity utilities

IPP Market Entry Strategy

A Ghanaian manufacturer of cables and other equipment was investigating entry into the power generation sector in Ghana and West Africa.  AAAcc was engaged to develop and help execute a suitable market entry strategy.  Highlights include:
  • Researching marketplace and assessing opportunities
  • Developing relationships with potential partners
  • Developed a robust strategy and implementation plan
  • Evaluated and Proposed a number of potential investments leveraging the clients assets and contacts