Xynteo was tasked with understanding, assessing and providing recommendations about a Texas-bsaed energy solutions firm that they were excited to make a substantial investment in.
A leading Private Equity firm engaged Xynteo to conduct a market assessment on the target company who offers behind-the-meter and front-of-the-meter backup generation as a service in ERCOT, Texas to C&I customers.
In particular, our client sought Xynteo’s support to evaluate the target’s competitive positioning, market opportunities, and growth potential. The pre-due diligence aimed to assess the market opportunity as well as initial commercial viability of the investment by validating the target’s market size, pricing opportunities and revenue, and growth opportunities.
15+
Major competitors benchmarked.
4+
Major load zones in ERCOT analysed by assessing pricing and capacity opportunity of participation in the market.
8+
Key risks identified as part of the assessment
The initiative
The key objectives for the engagement:
- Conduct a comprehensive market sizing of the different pricing models for programmes in ERCOT
- Provide a competitive landscape analysis, and policy / regulation assessment
- Develop and validate a pricing analysis incorporating key risks and market drivers for the Demand Response programmes in ERCOT
Xynteo’s role
Conduct rigorous market assessment on the target company:
- Conducted a comprehensive competitive analysis to benchmark the target’s current and future strategy in the market and highlight synergies across different players
- Reviewed the policy and regulatory framework across major federal and state-led changes which will impact the target’s participation across the different DR programs today and in the future
- Assessed and quantified growth drivers for revenue creation through pricing including the changing energy mix, BESS capacity growth and the demand increase from data centres
- Provided an initial red flag analysis to highlight any key risks and contingencies
