How we Helped them?
Bid Model
MCC played a critical role in supporting TWP’s bid submission strategy by delivering:
- Development of a Custom CfD Bid Model
- Built a financial model from scratch to determine the optimal CfD strike price.
- Accounted for two separate offshore wind farms, each utilizing distinct technologies (floating and fixed-foundation).
- Integrated project-specific costs, revenue forecasts, and operational assumptions to reflect real-world conditions.
- Comprehensive CfD Mechanism Analysis
- Conducted a detailed review of the CfD framework to ensure full compliance with auction requirements.
- Evaluated bid submission strategies based on government auction pricing trends and industry benchmarks.
- Scenario Analysis and Financial Forecasting
- Sourced relevant operational and financing inputs to ensure accuracy in cost projections.
- Designed a scenario analysis tool to test multiple assumptions, providing TWP with a flexible and data-driven decision-making framework.
- Modeled the impact of financing structures, cost variations, and energy output fluctuations on the strike price.
- Bid Optimization Based on Target IRR
- Calculated the CfD strike price based on the project’s target internal rate of return (IRR) to ensure financial viability.
- Provided strategic recommendations to enhance bid competitiveness while balancing risk and return.
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