RWE owned a portfolio of 68 Combined Heat and Power units used in a variety of contexts including hotels, leisure centres, agriculture and municipal.
The total portfolio was loss making while a number of contracts with customers had between 3 and 5 years to run. The main challenges were as follows: 1 Calculating the true performance of each unit and isolating losses 2 Assessing improvement potential using technical, financial and contractual methods 3 Developing a strategy to optimise the portfolio
1 Modelling of technical performance of each unit to establish actual status 2 Simulating contractual and technical scenarios for financial improvement potential 3 Identification of and negotiation with service providers and financial partners capable of taking on the portfolio while maintaining RWE customer satisfaction
600% improvement in IRR