Baringa

Are you ready to tackle your toughest digital challenges side-by-side with a partner you trust? We work with our clients to uncover hidden opportunities, using digital and AI in new ways to bring their vision to life. Get in touch to discuss how we can work together with your team to inspire confidence, spark collaboration, and build capability that just keeps on growing. #ImpactThatLasts #BaringaDigitalAI #DigitalTransformation #AISolutions

Unlock opportunity and accelerate growth with our cloud and platforms expertise. Find out more about turning your cloud and platforms investments into an engine for growth: https://ow.ly/Jr1y50UG82Y #ImpactThatLasts #BaringaDigitalAI #CloudPlatforms #AISolutions

Drone deliveries could result in millions of pounds in cost savings and alleviate pressure on the UK’s healthcare system. We estimate that such interventions could save the NHS a total of 2.65 million hours of delivery time and £42.9m in operational costs from 2027 to 2035. Additionally, drone deliveries could reduce greenhouse gas emissions by 16.6m kg CO2e from 2024 to 2035, which is valued at £1.57m. Explore how adopting a drone delivery model can generate significant time, environment and operational cost savings for healthcare systems: https://ow.ly/3lHQ50Uu6FL #drones #NHS #healthcare #publicsector Robin Cooper Alex Law Fraser McNeil

Scaling AI is top of mind for business leaders. Read our practical insights from our latest transformation leaders event for advice on moving beyond AI experimentation to deliver value. Explore further: https://ow.ly/cTao50UEfLZ #ImpactThatLasts #BaringaDigitalAI #DigitalTransformation #AISolutions

𝗖𝗼𝘂𝗻𝘁𝗱𝗼𝘄𝗻 𝘁𝗼 𝘁𝗵𝗲 𝗧-𝟰 𝗖𝗮𝗽𝗮𝗰𝗶𝘁𝘆 𝗠𝗮𝗿𝗸𝗲𝘁 𝗔𝘂𝗰𝘁𝗶𝗼𝗻: 𝗞𝗲𝘆 𝗤𝘂𝗲𝘀𝘁𝗶𝗼𝗻𝘀 𝗮𝗻𝗱 𝗜𝗻𝘀𝗶𝗴𝗵𝘁𝘀 With the next T-4 Capacity Market auction approaching in March, there’s much to dissect. Let’s explore some of the key dynamics shaping the auction and what might influence outcomes. Reach out if you are interested in our analysis on this. The demand target has been set at 44GW, with 48.7GW pre-qualified or conditionally pre-qualified - a higher margin above the target than in last year’s auction at this stage, but a greater proportion of BESS and DSR. 𝗪𝗵𝗮𝘁 𝗺𝗶𝗴𝗵𝘁 𝘁𝗵𝗶𝘀 𝗺𝗲𝗮𝗻 𝗳𝗼𝗿 𝘁𝗵𝗲 𝗰𝗹𝗲𝗮𝗿𝗶𝗻𝗴 𝗽𝗿𝗶𝗰𝗲?  In a central scenario we think it could clear in the £50s, but this is very sensitive to potential changes in the demand target or pre-qual capacity. 𝗣𝗿𝗲𝗾𝘂𝗮𝗹𝗶𝗳𝗶𝗲𝗱 𝗖𝗮𝗽𝗮𝗰𝗶𝘁𝘆: 𝗪𝗵𝗮𝘁’𝘀 𝗶𝗻, 𝘄𝗵𝗮𝘁 𝗺𝗶𝗴𝗵𝘁 𝗰𝗵𝗮𝗻𝗴𝗲 The prequalified capacity gives us a first glance at the auction, but there’s always room for movement. DSR and BESS are key technologies to watch as we approach the auction. 𝗗𝗲𝗺𝗮𝗻𝗱 𝗨𝗻𝗰𝗲𝗿𝘁𝗮𝗶𝗻𝘁𝘆: 𝗛𝗼𝘄 𝗺𝗶𝗴𝗵𝘁 𝘁𝗵𝗲 𝗱𝗲𝗺𝗮𝗻𝗱 𝘁𝗮𝗿𝗴𝗲𝘁 𝗺𝗼𝘃𝗲 𝗮𝘄𝗮𝘆 𝗳𝗿𝗼𝗺 𝟰𝟰 𝗚𝗪? NESO and DESNZ will need to decide whether to adjust the demand target to reflect developments since last July. In particular, EDF’s announcement that it intends to extend the life of Heysham 2 and Torness could prompt a reduction in the target, but the termination of the Capacity Agreement for the 776 MW Eggborough CCGT unit 2 could result in an increase. These two combined could see a c. 1.7 GW net reduction of the demand target. There is also continued uncertainty over the future of the 3GW of biomass conversion capacity whose RO and CfD support finishes in March 2027. The Government consulted on transitional support arrangements for this technology a year ago, but is yet to confirm whether support will be provided. 𝗧𝗲𝗰𝗵𝗻𝗼𝗹𝗼𝗴𝘆 𝗕𝗶𝗱𝗱𝗶𝗻𝗴 𝗗𝘆𝗻𝗮𝗺𝗶𝗰𝘀: 𝗪𝗵𝗮𝘁 𝘀𝗲𝘁𝘀 𝘁𝗵𝗲 𝗽𝗿𝗶𝗰𝗲? Changes to the demand target likely bring additional focus into parts of the curve where bidding dynamics have not been revealed in recent auctions i.e (£25 - £60/kW). Price-setting likely hinges on the interplay between: • Batteries: Costs, revenue expectations and volatility. • DSR: Deliverability, risk • New unabated gas: Cost to build and finance, electricity demand. • Existing CCGTs and refurbs: Fixed costs, decarbonisation, extension and financing costs, will refurbishing generators exit or take a one year if their threshold is not met? We will continue to unpack these dynamics as the register evolves and final auction parameters are announced. 𝗣𝗹𝗲𝗮𝘀𝗲 𝗴𝗲𝘁 𝗶𝗻 𝘁𝗼𝘂𝗰𝗵 𝗶𝗳 𝘆𝗼𝘂 𝘄𝗼𝘂𝗹𝗱 𝗹𝗶𝗸𝗲 𝘁𝗼 𝗱𝗶𝘃𝗲 𝗶𝗻𝘁𝗼 𝘁𝗵𝗲 𝗱𝗲𝘁𝗮𝗶𝗹 𝘄𝗶𝘁𝗵 𝘂𝘀. Baringa, Duncan Steen, Vikash Ahuja, Alex Weir

Our US distributed energy team is kicking off 2025 strong! Were pleased to share that they advised EQT Group on the first strategic investment for their transition infrastructure strategy into Scale Microgrids, driving resilience, cost savings, and speed to market for distributed energy resources. Were excited for the future of customer centric energy solutions in North America. To learn more about our distributed energy projections, deal advisory services and our other offerings, please connect with a member of our team Tom Harper John Baron, Derek Coleman, Ben Heininger, Sindhu Iyer, Alex Perry

It's T-7 days until the DORA compliance deadline, but the hard work isn't over yet! Daniel Golding and Salina Ladha take stock of where firms are and share their view on what’s next. Discover how we can help with your compliance journey: https://ow.ly/rSsa50UE6wf #DORA #CyberResilience

Have you signed up to receive 2025's first edition of Baringa's Energy and Resources Briefing? Don't miss out on it hitting your inbox next week by registering to get your copy: https://ow.ly/v2rk50UCEVr

We partnered with a top 10 global biopharma organisation to bridge cultural gaps and foster genuine collaboration among diverse stakeholders. This collaboration is crucial for embedding and scaling the impact of data, digital, and AI in R&D Read our client story: https://ow.ly/xkeL50UCorB Kate Moss (nee Watkins) Stephen Shelton Joshua Elliott #powerofpartnerships #strategicpartnerships

Uncrewed Aircraft Systems and drone-in-a-box deployments offer powerful new ways to help police forces operate more effectively. In addition to generating operational cost savings of up to £22.6m per year by 2035, replacing NPAS helicopter tasks with uncrewed aircraft systems and drone-in-a-box operations could generate environmental savings of up to 6.1m kg CO2e per year by 2035, valued at £741,000, equivalent to taking 1,458 petrol-powered cars off the roads for one year. Find out more in our latest report ‘New horizons: The case for public sector drone investment’: https://ow.ly/OXk550Uu6E1 #drones #lawenforcement #police #publicsector Robin Cooper Alex Law Fraser McNeil