Energy Financial Modelling and Economic Analysis

The Ministry of Energy and Climate Solutions is requesting Proposals from qualified and
experienced Proponents to provide comprehensive economic and financial analysis of energy
projects. This will inform evidence-based decisions and negotiations that advance British
Columbia’s (B.C.’s) mandate to grow clean energy, liquified natural gas, liquefied petroleum
gas, and oil market opportunities, across the supply chain from production to export.

The comprehensive economic and financial analysis will be provided on an if, as and when
requested basis and may include scenario modelling, fiscal impact assessments, and
maintaining, building or enhancing existing financial models that are designed to support
competitive analysis of B.C.’s energy projects.

The financial models referred to above would evaluate the financial viability of energy projects
as well as provincial and federal revenues. The financial models should be capable of analyzing
the impact changes to fiscal levers such as royalty rates, corporate tax rates, capital cost
allowance, and provincial sales tax. The financial models could also be used to estimate
breakeven cost stacks, internal rates of return, net present values of cash flows for the
necessary elements of projects’ value chains. The services may include the review and financial
analysis of similar projects in competing jurisdictions.

Work under this contract opportunity could also include independent analysis of utility financial
models. Analysis may include validating capital costs, identifying and quantifying risks and
implications of potential rate and regulatory structures and the associated impacts to rate
payers and utility shareholders in British Columbia.

Under the Contract the Contractor will provide impartial analytical support during consultations
and negotiations related to the impact that changes to fiscal levers could have on the financial
viability of energy projects and provincial/federal revenue. Support would be provided prior to,
during and following consultation and negotiations between the Province and proponents of
proposed energy projects.

Work could also include preparing materials that inform the preparation of briefing materials
for senior executives including Assistant Deputy Ministers, Deputy Ministers and Ministers.
Deliverables under the Contract will include research materials and final briefing materials. Any
changes made to financial models must be fully documented and Ministry staff must be trained
on the use of the models.