Due diligence of Fortum’s district heating and electricity distribution networks

Technical due diligence

Scope of work

Multiconsult conducted a thorough technical review of the electricity distribution grid in Southeastern Norway; and six district heating/cooling systems (incl license for extension) around Oslo and Mid-Norway. For the electricity distribution grid, Multiconsult reviewed current technical condition of both the overhead lines and underground cables, as well as local and regional transformer stations – and estimated load growth and future year-by-year re-investment and operating needs. The scope also include review of the operations management and impact from planned roll-out of automated metering systems (AMM); as well as analysis of quality of supply indicators and safety audits. For the district heating/cooling assets, Multiconsult provided an overall market outlook including B2B analysis as well as an overview of the regulatory environment. Multiconsult also reviewed the technology and technical solutions of both heat/cooling generating units and the distribution network and suggested future re-investment and operating needs; commented on the organization and environment and safety.

In this assignment, Multiconsult’s economists and engineers worked together with advisors from Barclays Bank, EY, Willis, Thema and Wiersholm.