Structured Strategy, Global Vision: Advancing Electricity Market Research Under the Umbrella of Sustainable Investing

Project Progress: Narrowing the Scope
Over the past few weeks, our team has made meaningful progress in our consulting project with an electricity trading startup. After confirming that the client is looking to expand outside the U.S., our first major task was to navigate the vast and complex landscape of global electricity markets. Since each market operates under its own set of regulations and mechanisms, it was critical to identify those that align with the client’s trading model and long-term vision.

To tackle this, we conducted extensive desktop research and literature reviews while maintaining close engagement with our client to fully understand the technical components their model requires. Our electricity markets professor also provided valuable insights, helping us pinpoint several promising regions. With this guidance, we finalized a set of feasibility criteria and began assessing global markets accordingly.

After applying our framework, we selected Canada and Latin America as our two focus regions. We were pleased to find that these markets not only meet our baseline requirements but also demonstrate strong potential for renewable energy integration and sustainable investing. Latin America, in particular, stands out as an emerging region with persistent inefficiencies in balancing electricity supply and demand. If our client enters this market, its forecasting capabilities could help improve price stability and overall efficiency. That’s not just good business—it represents meaningful impact.

Building a Methodology: A Key Milestone
One of the most valuable aspects of our work has been developing a structured and practical evaluation framework. After multiple rounds of discussion and refinement, we established a two-stage process that has become central to how we assess market potential.

In the first stage, we defined a set of baseline criteria that a market must meet to be considered viable for our client’s operations. This is where our “checkbox” tool came into play, allowing us to screen markets based on key elements such as deregulation, pricing mechanisms, and data availability. This tool helped us narrow down a broad list of candidates into a focused shortlist.

The second stage involved a more detailed analysis of market quality. We considered factors like policy support, renewable energy integration, competitiveness, and the reliability of market data. This deeper evaluation allowed us to compare shortlisted markets more strategically and identify where our client could generate the greatest value.

So far, we’ve applied this two-part framework to the Canadian market, focusing specifically on Alberta and Ontario, the only two deregulated provinces. Based on our analysis, Ontario emerged as the most promising candidate.

This approach has also prepared us well for our upcoming research in Latin America, where we plan to apply the same methodology to assess new opportunities.

Client Engagement: Cross-Disciplinary Learning
Our client has an engineering background, while our team primarily approaches the project from a policy and market strategy perspective. This cross-disciplinary setup introduced some challenges, especially when aligning technical trading mechanisms with broader regulatory and policy considerations.

To address this, we adopted a clear and structured communication style. Visuals, charts, and summaries have played a key role in presenting our findings in a way that supports shared understanding and collaboration.

Despite our different perspectives, the experience has been highly rewarding. The client has helped us better understand the technical mechanics of electricity trading, while we’ve provided insights into regulatory alignment, market dynamics, and sustainability. This collaboration has been a learning opportunity for everyone involved and has highlighted the value of effective communication.

Team Dynamics and Midterm Presentation
Our team has worked together with strong coordination and mutual support. Everyone contributes meaningfully, and responsibilities are clearly divided. Regular meetings and debriefs have helped us stay aligned and ensure steady progress.

We recently delivered our midterm presentation to both the client and our class. Professor Minard offered thoughtful feedback, especially on the importance of making our presentation relevant and accessible. I’ve come to realize that consulting is not about sharing every detail, but about telling a compelling story that helps the audience understand the value and impact of our work.

Reflections and What’s Next
This project has taught me how to approach market expansion in a structured and analytical way. From broad initial research to narrowing our focus and refining our methodology, I’ve learned how to design a logical and actionable market entry strategy.

Building the evaluation criteria and developing the checkbox tool was not an easy task. It required a solid understanding of both the technical structure of the trading model and the complexities of electricity markets and policy environments. But it was through this challenge that I gained a deeper appreciation for how data, market mechanics, and sustainability policy intersect.

I’ve also come to recognize the importance of clear communication—whether with clients, teammates, or during presentations. Working with such a proactive and collaborative team has been one of the highlights of my semester. Everyone takes initiative and ownership, and our consistent internal coordination has helped us stay aligned and make steady progress.

Looking Ahead: Researching Latin America
Our next step is to conduct market research in Latin America. Unlike Canada, electricity markets in this region are less aligned with the U.S. model, which means we may encounter more challenges, such as limited data accessibility, policy differences, and unfamiliar regulatory frameworks. However, both our team and the client believe there is strong potential in the region, and we’re eager to explore what opportunities may arise.

Overall, this has been a deeply rewarding experience. I’m excited to dive into the next phase, apply our refined methodology to new markets, and continue learning from this unique intersection of consulting, energy policy, and sustainable investing.