Dr Michael Kraus

Senior Adviser

+49 (0) 30 7675 99102

Location: Berlin

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Michael specialises in regulatory, energy and environmental economics. He has worked as an international consultant in Germany for many years, and has established consulting practices in Berlin. Michael has advised on numerous M&A transactions involving European infrastructure assets, including in gas and electricity networks, conventional and renewable power generation, natural gas and battery storage, metering and sub-metering, and waste and recycling. His clients include strategic investors as well as private equity providers, infrastructure funds, pension funds and start-ups.

He has served as expert witness in international arbitration cases and before appellant courts. Michael has held directorships in several companies. From 1999 to 2004, he was Professor of Energy Economics at the Mannheim and Darmstadt Universities of Applied Sciences, and he began his career at the International Energy Agency of the OECD in Paris.

Selected project experience

  • Market due diligence for an institutional investor in relation to the acquisition of a large-scale lithium battery storage asset for use in primary reserve capacity in the German power market

  • Valuation of a suite of products for a start-up company that is developing patented technologies for sustainable non-toxic chemical products in global business-to-business applications

  • Research on regulatory and economic drivers and risk factors in relation to the sale of a major waste management and recycling company that is collecting sales packages and processing raw materials for the closed-cycle economy

  • Research on economic and regulatory drivers and risk factors in European sub-metering markets in relation to the sale of a sub-metering business that supplies and operators sub-meters for heat, water, gas and electricity

  • Regulatory due diligence on three natural gas transport systems in Germany and Switzerland

  • Expert advice to a German electricity TSO on the offshore power cables cartel, including the potential value of commerce affected, and the range of the cartel overcharge and pass-on to network users

  • Cost of capital estimation consistent with the German ‘Energiewende’ for the four German electricity TSOs, including a comparison of the different risk elements of gas and electricity TSOs and gas and electricity DSOs

  • Analysis of the productivity factor for German electricity TSOs used in the German regulatory formula

  • Regulatory due diligence on a gas TSO for an institutional investor and a German strategic investor. The focus was on regulatory allowed cost of capital (WACC), the regulatory asset base (RAB) and exposure to changes in international gas flows

  • Advice to a European infrastructure investor on RAB valuation approaches for European companies, in particular in Germany, the UK and Sweden, and the practicalities and interactions with the regulators

  • Calculation of the damages from an offshore cable cartel for a Belgian offshore wind farm operator, including the value of commerce affected, the cartel price overcharge, and pass-on to customers or government

  • Study on unlevered betas for renewable energy generation assets for a Portuguese operator. An initial asset beta range was determined based on Oxera’s work for the UK Commission on Climate Change. The study relied on regulatory determinations

  • Economic advice for an Irish operator of gas-fired power generation on regulatory restrictions for secondary and within-day capacity bookings. The analysis assessed whether measures were effective and equitable, and potential adverse effects

  • Litigation advice in the LCIA/Energy Charta Treaty dispute for minority shareholders in an Eastern European oil/gas company, including counterfactual scenarios (gas production and prices, regulation under different regimes) and quantum estimates

  • Regulatory due diligence advice for a financial investor on a Northern Ireland gas distribution network. The report included an estimate of the WACC and connections and volume projections

  • Advice to a financial institution on credit metrics for a Swedish electricity distribution network (in cooperation with Grant Thornton Sweden AB), including assessment of capital structure and financial resilience of the regulated Swedish network company

  • Expert report for the Austrian Competition Court, including market power assessment, theories of harm under long-term gas contracts, relevant market definitions, and market positions of the actors

  • Regulatory due diligence for a Canadian pension fund on energy distribution assets in Turkey and the Balkans, including regulatory scenarios, reviews of the confidential VDD information, comparisons of the regimes, and identification of regulatory risks and opportunities affecting valuation of the distribution assets

  • Regulatory due diligence in relation to the acquisition of a German gas TSO, including review of the regulatory framework, modelling of revenues, VDR review, SPA protection clauses, lender bank report, and discussions with regulators

Selected publications

  • Kraus, M. (2009), ‘German Incentive Regulation from the Investor’s Perspective’, Energy Regulation Insights, 36, March.


  • PhD Energy Economics, Karlsruhe University, Germany

  • Postgraduate studies Economics, Karlsruhe University, Germany

  • Masters degree Mechanical Engineering, Karlsruhe University, Germany

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