Investment Cost Sharing Methodology Development

IPA Energy + Water Economics were commissioned Guernsey Electricity and the Jersey Electricity Company to establish a methodology for the equitable sharing of capital and operating costs of a number of potential infrastructure investment projects.  The study included developing a bespoke despatch simulation model, identifying appropriate investment sharing methodologies, and determining the expected usage and value of a new investment across a number of different policy decision frameworks and commodity price scenarios.  The methodology was applied to the first potential project, a submarine interconnector planned for commissioning in 2013.