Projects in the area of Energy Economics include detailed market analyses of the energy market - supply sources, demand sources, and deploying various technologies, including renewable energies (e.g., waste-to-energy and wind energy). Other projects focus on estimating the demand for electricity (including implementing energy saving components), natural gas, oil, and other forms of energy, and studying possible supply sources to meet these demands.
By developing complex economic models, the Israeli government-level energy projects forecast electricity prices, and our economic feasibility studies are performed for independent power producers. A majority of energy projects are based on evaluating the market structure between government-owned utility companies and independent power producers. These high-profile projects must comply with government legislation and regulations, such as the Israeli Electric Market Law, the Landfill Act of the EU, and the Renewables Obligation of the UK.
Economikr’s comparative advantage is its experience in providing analysis on behalf of new private-sector entrants into the energy market, a field predominantly occupied by large natural monopolies. It has surveyed various developments in regulation in several markets, and has analyzed market changes in a constantly changing world, both in terms of supply of energy products, private financing, governmental guarantees, and other financial factors.
Evaluating the Market Structure between Israeli Gas, Palestinian Gas, Egyptian Gas, LNG, and Pipeline Gas from Russia
The project, performed for Noble Energy under subcontract to Economic Models, focused on the current gas source alternatives for the Israeli market – self-supplied gas, supplies from British Gas from Palestinian gas fields, Liquefied Natural Gas supplied from Africa and other locales, and undersea pipeline gas supplied by Russia via Turkey. Each of these supply sources have a different minimal quantity and a cost, linked to different benchmarks such as previously existing agreements, market prices such as Henry Hub, and different types of infrastructure investments required to receive the gas – such as gas terminals and regasification plants. The evaluation included determining the possible equilibrium between the relevant supply and demand for changing prices and supply sources.
Survey of Natural Gas Distribution Market in Israel
Performed for Noble Energy, under subcontract to Economic Models Ltd., this project focused on estimating demands from gas distribution plants of varying sizes. The survey included possible supply sources, constraints, and estimating costs for different sized organizations.
Business Plan for EER, an Israeli Waste Treatment Company
One of Israel’s leading waste treatment firms, EER holds a patented technology for the treatment of three distinct types of waste: Municipal Solid Waste, Medical Waste, and Light and Intermediate Level Radioactive Waste. The company produces a type of renewable energy valid for ROCs (Renewables Obligation Certificate). EER’s business plan included developing an economic model of electricity sales figures derived from renewable sources and ROCs income. This project was performed under the auspices of Economic Models Ltd.
Development of a New Electricity Price Model in Israel
This project, based on the Israeli Electricity Regulation Authority (PUA), included estimating the overall electricity demand and developing an investment plan at the macro-economic level. The model created for this project was used to estimate future electricity prices in Israel over the next two decades (2010-2030).
Economic Feasibility Study of Possible Energy Configurations for the Israeli Chemical Corporation
This study was created for the Israel Chemical Corporation, one of the world’s leading exporters of phosphates, potash and specialized fertilizers, and performed under the auspices of Economic Models Ltd. The study included developing cash flows based on different types of plants and various financial alternatives, including Private Financing Initiatives (PFI).
Estimation Model of Natural Gas Demand in Israel
Another significant project performed for Noble Energy, performed under the auspices of Economic Models Ltd., this project estimated the demand for natural gas from various sources - Israel Electric Corporation (including replacing coal electricity supply with natural gas), direct industrial demand and IPP demand. The project included production estimation using renewable energies and other traditional production fuels. The estimates were based on the national electricity demand forecast, market distribution between Noble Energy and Egyptian gas, and estimating sales revenue under various price structures.
Evaluating Israel Oil Refineries (ORL) Production and Sales Model
ORL is Israel’s leading importer of various types of oil that lead to the development of oil-based products, including gasoline, diesel, aviation fuel, bitumen, fuel oil, and fuel additives. As ORL is a government-regulated entity, this project specifically required evaluating current government regulatory requirements.
Economic Feasibility Study of an Electricity Plant in Mishor Rotem, Israel
This project was performed under the auspices of Economic Models Ltd. for the Israel Corporation, a multi-billion dollar investment company engaged in the initiation, promotion and development of businesses in Israel. This high-level project included a feasibility study based on several types of sales models directed to end-consumers, with operation as a separate entity under the Israel Electric Corporation. The study included electricity price forecasts and risk analyses based on two types of fuel for electricity production – natural gas and fuel oil.
Economic Feasibility Study of an IPP Plant, Israel
This project, performed for Noble Energy under subcontract to Economic Models, included a feasibility study was based on natural gas, towards the development of a new independent power plant in the country. In the course of the study Economikr developed an optimization routine based on daily, monthly and yearly time of use of potential consumers of electricity.
Estimating Economic Potential of LNG (Liquefied Natural Gas) in Israel
This project was carried out for Israel Oil Refineries, the country leading importer of various types of oil that are the basis of several oil-based products, including gasoline, diesel, aviation fuel, bitumen, fuel oil, and fuel additives. This particular survey covered included estimating the economic profitability of importing LNG to Israel to produce electricity. Performed under subcontract to Economic Models Ltd.
Evaluating Market Structure of the Electricity Market in Israel
The Israel Electric Corporation (IEC), a government monopoly, is the main supplier of electricity in Israel. In this project, performed for Noble Energy under subcontract to Economic Models, the current electricity market structure underwent a comprehensive evaluation, based on demand and supply sources (including renewable energy), and various regulations. This project represented the first ever attempt to evaluate a market structure that included a new player, the Independent Private Producers, in a market previously dominated by the IEC.