The energy sector has a strategic role to play in sustainable economic growth.
The principles of the Brazilian energy model can be said to originate in the electric power sector while applying equally well to all segments of the energy balance, from energy security to production efficiency and affordability. These principles determine major challenges, and a systemic view of the energy sector has proved crucial to addressing them, focusing on generation, transmission and distribution; gas production and transportation; and biofuel production.
Issues such as the imminence of oil production in large volumes from the subsalt layer under the ocean bed, or producing ethanol for the domestic and foreign markets, require substantial regulatory reform and present fresh challenges.
LCA has a significant portfolio of completed projects in the energy sector, with Competition Economics, Market Intelligence, and Investment & Corporate Finance all making key contributions.
LCA’s expertise and capabilities
LCA has produced studies dedicated to the electric power sector, as well as renewable and non-renewable fuels, on various fronts including market forecasting, regulation, economic and financial equilibrium, energy balance and valuation. These complement each other and provide a solid foundation for robust and consistent analysis. We have built a reputation for excellence in interaction with licensing authorities such as Aneel, the national electric power industry regulator, ANP, the hydrocarbons regulator, and the Ministries of Mining & Energy, Development, Industry & Trade, and Agriculture.
Integrated operation by all practice areas enables LCA to analyze highly complex issues rapidly and efficiently, including for example the anticipation of risks and support for preventive action by the client.
Action on several fronts
For almost a decade LCA has been developing models to analyze and forecast electricity demand for several utilities to support their strategies for bidding in power auctions, positioning in tariff reviews, and transmission network reinforcement requirements. In addition, we produce market intelligence studies for the LPG and ethanol segments.
In regulation, LCA’s contributions include defining significant variables such as the X factor, concentration limits and remuneration basis, as well as researching other investment-related topics (the role of state-owned enterprises, verticalization, and project finance, for example).
Our Investment & Corporate Finance practice supports major investor groups in bidding strategies for auctions and valuations of hydroelectric and thermal power developments, small hydro, and biomass-fired power plants, in decisions on asset sales and purchases and venture capital, and in project finance and funding. We also act as advisors to major investors in electric power generation and distribution projects.
World Finance 2011
In 2011, the World Finance magazine awarded LCA the prize of best energy consultancy in Brazil. This edition of World Finance acknowledged the work performed by energy sector consultants from 16 countries. Among the nominees, there are companies such as Ernst & Young (elected the best energy consultancy in Bahrain), Accenture (best energy consultancy in Canada), Deloitte (Dubai) and Booz Allen Hamilton (USA).