VDV Energy consulting and interim management

VDV Energy is an energy consulting and interim management company focussed on the wholesale European energy market. We have in depth knowledge of all aspects of the wholesale energy market and hands on management experience in trading, hedging, structuring, risk management and related system implementations.

Any engagement is temporary and therefore knowledge transfer is a key element. We support companies in overcoming challenges but also aim that they are ready to face the next challenge themselves.

VDV Energy founder, René van der Vegt, is active in the wholesale energy sector since 1998 and has a extensive network in the sector.

Expertise for the North West European Energy Market

Expertise

The European energy market is complex, volatile and rapidly evolving. For participants and new entrants their activities inevitably entail high exposures to volume and price risks. We have in depth knowledge to support companies in managing these risks. The management and expertise is available as interim management or part time consultancy.

In-depth knowledge

VDV Energy has in-depth knowledge of trading, hedging and risk management. From strategy development for a new entrant, down to the day to day operational processes in large utilities. Experience with all aspects of asset related exposures, like power plants and gas storages, and how to decompose risks into underlying commodity exposures.

Management

VDV Energy founder, René van der Vegt, has over 12 years experience as managing director of trading and hedging business units. From risk averse utilities to pure speculative trading houses. We have hands on experience in setting up new business units, entering new markets and implementing all related operational processes (ETRM systems, risk management, dispatch and accounting).

Recently completed client engagements

VDV Energy has successfully completed various complex engagements related to power, gas and energy exposure in North West Europe; Examples of recent engagements are

  • Setting up a new European trading unit
  • Developing a business model for trading and hedging
  • Negotiating sourcing contracts for an energy retailer
  • Negotiating tolling contracts
  • Negotiating gas storage contracts
  • Design and implement energy trading business models

An oil and gas production company based in the Netherlands

Challenge The Bergermeer Gas Storage project entails the development of a 4,1 BCM seasonal storage in a depleted gas field. A key challenge is to source the required 4,3 BCM of cushion gas.

Contribution As Senior Commercial advisor was a key participant in negotiating the 4,3 BCM Cushion Gas Swap. A swap contract with Gazprom was signed in August 2009 and was the major underpinning contract for the FID taken by the partners in October 2009.

“The in-depth gas market and risk management knowledge of VDV Energy was a key contribution to securing the Cushion Gas Swap with Gazprom.”

One of the major utilities in the Netherlands with power generation, gas storage and a large customer portfolio

Challenge Over the years the business model and related ICT processes have been outdated and were no longer best practice.

Contribution Project Manager for developing a new business model for the energy trading unit and writing the Project Implementation Document for implementing the new model in ETRM system. In the second phase assisted the internal Project Manager.

“The in-depth knowledge and communication skills of VDV Energy was a key success factor in developing a new business model and implementation plan.”

A new energy retailer in The Netherlands

Challenge Source power and gas at competitive prices while minimizing volume and price risks.

Contribution Use the existing network to quickly scan the market and negotiate power and gas sourcing contracts with minimal exposures.

“Due to the efficient, pragmatic approach and the extensive industry network we were able to sign sourcing contracts for power and gas within 3 months with minimal price and volume exposure.”

A major electricity consumer in the Benelux

Challenge The existing sourcing contract for electricity (1 TWh/year) ended and Client needed to develop and implement a new sourcing strategy.

Contribution As senior advisor to the Project team developed the new sourcing strategy and supported the tendering process for a new 3-year contract. Annual direct savings in sourcing costs over €2M per year.

“René was a key contributor to the project team and his market knowledge was essential to develop and implement our new sourcing strategy.”

A power generation company

Challenge Due to a change in a tolling contract, the generator is exposed to a spark spread exposure. The generator wants the ability to financially hedge the exposure.

Contribution Based on VDV Energy experience two companies were selected and an ISDA framework agreement was negotiated together with a hedging service contract which allows the generator to exactly hedge the spark spread exposure.

“The knowledge and contacts of VDV Energy in the North West European market have enabled us to negotiate Hedging Service Agreements and related ISDA’s with various counterparties. These allow us to manage our Spark Spread exposures much more effectively.”

A bio fuel electricity generation company

Challenge A dispute with the electricity off-taker resulted in a court case ('kort geding'). An expert opinion was required to support the client in the court case.

Contribution Within one week the contractual situation was analyzed and a report was prepared to meet the court deadline.

“VDV Energy produced a very clear and concise report that was a major supporting factor in our court case. The in-depth knowledge and communication skills of VDV Energy were key to meeting the very tight deadline.”

A new venture trading power and gas across Europe

Challenge With a background in soft commodity trading a number of investors saw opportunities in the European Energy Market. Expertise was required to develop a comprehensive business plan for pan European power and gas trading, including capital requirements.

Contribution Within two months developed a comprehensive business plan for staged development of financial and physical power and gas trading operation. The plan included realistic targets for revenues, costs (both staff and ETRM system) and pro forma financial statements.

“VDV Energy's in-depth knowledge of the European Energy market has enabled us to very quickly develop a comprehensive business plan taking into account trading revenues, exchange memberships, organization, ICT, financing, grid operators and capital requirements.”

A waste processing company

Challenge Update the hedging strategy for electricity produced.

Contribution Detailed analysis of hedging results over the past 5 years and recommendation to go to a market average hedging strategy. A.o. simplifying administration and execution.

“VDV Energy's analysis made it crystal clear that we needed to go to a market average hedging strategy. Ensures better results and simplifies our internal processes.”

A major electricity consumer in the Benelux

Challenge The existing sourcing contract for electricity (1 TWh/year) ended and Client needed to develop and implement a new sourcing strategy.

Contribution As senior advisor to the Project team developed the new sourcing strategy and supported the tendering process for a new 3 year contract. Annual direct savings in sourcing costs over €2M per year.

“VDV Energy was a key contributor to the project team and his market knowledge was essential to develop and implement our new sourcing strategy.”

Blog

A consistent energy sourcing strategy

Energy costs can be substantial and volatile. Determining the energy sourcing strategy can quickly turn into debates on where the market is going and not lead to a consistent energy sourcing strategy. If you are a board member or director responsible for energy sourcing, this paper should give you a solid basis for defining your company specific energy sourcing strategy. It starts with what energy cost consist of, then shows it can be treated as any other inventory item and finally lays out the default strategy of index buying.
Read more

Contact

René van der Vegt
+31 6 5086 3191

LinkedIn

Chamber of Commerce 30221052
The company was founded in 2008