Framework
The ENERMO Assurance Framework
Much of the risk in a major energy project sits between disciplines. ENERMO’s framework combines front‑end loading stage gates with the TECOP risk dimensions, both widely used in the energy industry.
Decision points
ENERMO is typically engaged before capital or public funding is committed.
Investment decision
Is the business case strong enough to proceed?
Acquisition
Which risks could materially change the valuation?
Financial close
Are the technical, commercial and delivery assumptions mature enough for lenders?
Government commitment
Does the project offer value for money, and can it be delivered?
Support scheme application
Is the project ready to meet the tests a government funding decision applies?
Project maturity
Front‑end loading (FEL), a well‑established measure of project maturity, takes a project through three development stages to a final investment decision. Each stage ends at a gate, where ENERMO reviews whether the project is mature enough to proceed.
- FEL 1 · AppraiseOpportunity defined and business case testedBusiness Case Review
- FEL 2 · SelectPreferred concept chosen from the alternativesConcept Review
- FEL 3 · DefineDesign, cost estimate and schedule matured for sanctionFID Readiness Review
- Final investment decisionCapital committed and delivery begins
Risk dimensions
ENERMO reassesses all five TECOP risk dimensions at every gate. At FEL 1 the test is whether the technology and business case can work; by FID it is whether design, cost, contracts and consents are firm enough to commit capital.
- TechnicalWhether the design and technology are ready for deployment.
- EconomicWhether the cost estimate, contingency and returns are credible.
- CommercialWhether contracts allocate risk soundly and the project is bankable.
- OrganisationalWhether the organisation and its governance can deliver on schedule and within budget.
- PoliticalWhether consents and policy support are secure.