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Designing energy markets

CMS has played an instrumental role as a key adviser to the electricity and gas sectors for over three decades. Our dedicated Energy Team has the unique distinction of having written many of the agreements, codes and rules that regulate electricity, gas, water and other utility sectors around the world. Our global experience of developing and implementing market rules and frameworks in many jurisdictions internationally has given us a keen understanding of what has and has not worked in practice, and puts us in an ideal position to anticipate the key issues that may arise on a project of this kind.

CMS has depth of experience in designing markets, with a particular strength in recent years on incorporating renewable energy into the designs. We have worked with clients including governments, single buyers, procurement entities, developers, investors, financiers, operators, off-takers, retailers and the supply chain on hundreds of renewables projects across the globe, which gives us a key insight into what each of these stakeholders requires. We routinely advise on the detail of renewable support regimes, from market design through to the day-to-day interpretation of operational schemes.

Selected relevant experience includes advising the following:

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Market design and reform of legislative or industry frameworks

Mexico

The Mexican Ministry of Energy (SENER) on all aspects of the electricity market reform in Mexico, including restructuring of the electricity industry, creating a new, state of the art wholesale electricity market and designing auctions to procure a large pipeline of renewable energy projects.

UK

Various stakeholders in Great Britain on the initial privatisation of the electricity market in 1989 and every major reform since. More recently, advising on the Electricity Market Reform programme in Great Britain, which introduced competitive auction systems for renewable and thermal generation. 

Oman 

Government of Oman (2018-2019) on the restructuring and privatisation of Oman’s waste and wastewater sectors and the development of the new sector law and related regulatory instruments (having also advised previously on the restructuring and privatisation of Oman’s electricity and related water sectors).

Saudi Arabia

Electricity Regulatory Authority of the Kingdom of Saudi Arabia (2003-ongoing) on the establishment of a restructured electricity system for Saudi Arabia, including drafting primary legislation to regulate the electricity sector. We have subsequently advised on a broad range of matters including renewable power purchase arrangements.

Malaysia

Tenaga Nasional Berhad (2016) on the introduction of new electricity wholesale trading arrangements in Malaysia.

Japan

The Government of Japan (2014-present) on the restructuring of the power industry in Japan and the implementation of UK-style Electricity Market Reform

Serbia

Initially advising on liberalisation of the legal and regulatory framework in Serbia pursuant to EU Directives. More recently, advising the Serbian Government (2016) on the drafting of Serbia’s concession and PPP legislation and drafting the model of an energy supply contract as a piece of legislation. 

Jordan

The Government of the Hashemite Kingdom of Jordan on the privatization of electricity generation and distribution.

NI and Republic of Ireland

Advising in Northern Ireland and the Republic of Ireland on market opening and on various market design and regulatory matters since, including the implementation of the Single Electricity Market for the island of Ireland.

Austrialia

The Government of Victoria (Australia) on electricity market restructuring.

California

The trustees of the California Independent Systems Operation Corporation and California Power Exchange Corporation on the establishment of an Independent System Operator and Power Exchange for the State of California.

PJM

The board of PJM Interconnection LLC in to its role as an independent system and market operator for Pennsylvania, New Jersey and Maryland.

Alberta

TransAlta on its stakeholder engagement in the design of the Alberta Capacity Market.

Central America

A member of expert panel on SIEPAC project on the implementation of a regional market in Central America.

Guatemala

The Guatemala electricity regulator on the drafting of regulations and market rules for a new wholesale market.

Argentina

Investors on the privatisation of the transmission system in Argentina and associated regulatory matters.

Philippines

The Philippines National Electrification Administration on the development of private participation in the generation and distribution of electricity.

Thailand

The World Bank on a new legal and regulatory framework for the electricity sector and power purchase agreements in Thailand.

Cambodia

The Government of Cambodia on private investment in power, including drafting power procurement legislation together with model power procurement documentation.

South Africa

The Government of South Africa on electricity market restructuring, including wide scale reform to the legislative and regulatory frameworks for procurement of renewable independent power projects

Nigeria

The Government of Nigeria on the establishment of the legislative and regulatory framework for the proposed competitive electricity market in Nigeria.

Lesotho

The Government of Lesotho on the privatisation Lesotho Electricity Corporation.

Tanzania

The Government of Tanzania and TANESCO on the development of the legal and regulatory framework for the privatisation of the Tanzanian electricity market.

Zambia

The Government of Zambia in relation to the privatisation of the Zambia electricity market.

Botswana

The Botswana Ministry of Minerals, Energy and Water Resources on the establishment of a new cross-sectoral utility regulator for Botswana.

Kosovo

IFC on developing a Transaction Strategy for the privatisation of the distribution and supply business of the Kosovo Energy Corporation.

India

The Government of Orissa and the World Bank on the restructuring and privatisation of the electricity industry in Orissa (the first state in India to undertake such reform).