Power & Gas Trading and Risk Management ETRM System
Utilities, electricity and gas retailers of all sizes from small cooperatives to large companies face very demanding challenges:
- Different energy market structures:
Nodal markets | Day-ahead markets | Real-time markets. - Market rules in your jurisdiction are not yet finalized or are ever changing.
- Trading requirements from wholesale to retail are not fully determined and are changing.
- Your company’s energy sourcing portfolio can be a mix of generation, PPA auctions and pool participations, with time varying allocations, and in case of generation, you can have a diverse fuel portfolio with highly volatile prices.
- Actively participating in real-time Pool or electronic markets requires the ability to electronically place bids and/or nominations and retrieve dispatch schedules.
- You can be operating in jurisdictions where market rules are newly created and you are alone in formulating your requirements and trading strategies.
- Your local markets are often illiquid, making trading and pricing difficult.
- You have to manage 2 separate risks. The Value at Risk (VaR) of your portfolio on the marketing side, and the Earnings at Risk of your assets on the PPA and generation side.
QuantRisk delivers the most comprehensive solution for integrated utilities, power generators, small cooperatives, municipal power & gas companies and energy retailers and marketers.
Click image for a larger view.
QR Analytics Server has extensive capabilities to model and forecast load and prices in power and gas markets:
- Ability to easily overcome the illiquidity of regional power market quotes and resulting lack of data when modeling forward curves.
- Extensive index modeling and formula typing capabilities are available so that user can enter the complex charges and fee structures involved in the cash flow of physical gas and power deals. Without this, no physical and retail deals can be properly settled or undergo risk valuation.
- Advanced analytics support systems to model nodal markets (price and load forecasting) on multiple time scales.
- Full Monte Carlo simulation of prices and loads in ¼ , ½ and 1 hourly markets, leading to what-if scenarios and portfolio hedging, of fuel and FX, and real-time MTM and risk valuation.
QR Risk System offers comprehensive market as well as counterparty exposure and credit risk management solutions, down to real-time risk valuation.
- Mark to Market and Value at Risk (VaR) are computed on trade portfolios.
- Extensive Cash Flow and Earnings at Risk valuation capabilities are offered for physical positions.
QR Trade Capture and Scheduler offer extensive range of solutions for physical and retail electricity trading:
- User friendly wizards allow you to rapidly create trading pages to capture all physical and retail energy deals in your local market. For more information see...
- Comprehensive settlement, billing and cash flow projection for physical, financial, hedges, fuel, and retail books. For more information see...
- Automated Data Connection Bridge to any electronic market operator, ISO, power pool, data provider, meter reading data source, etc. We provide comprehensive data management, integration, real-time connectivity and warehousing for all types of data: market prices, charges, load, meter reading, SCADA, dispatch, etc. In addition, users can interact and access data within many convenient web-based interfaces, including reports and web-display data panels.
- The best Retail Book Management system available on the market. You can capture and manage all aspects of retail contracts, across various pricing plans, involving complex indices, various transmission voltages and losses, tariffs, charges, fees, incentives and penalties, down to end-client meter.
- The Retail Price Calculator prices any physical and retail contracts with its various constraints and costs: operations, fuel, hedging and pollutant.
- The Hedging Module allows you to cross link physical deals (retail or wholesale) to hedges and to perform various Mark to Market valuation of over and under hedged positions, as well as cash flow analysis based on the cost of hedging, FX, feedstock or fuel. Hedging positions can be balanced and managed as dynamic portfolios. Retail deals can be automatically linked to their hedges. Cross hedging is tracked.
- QR Scheduling System allows real-time bidding, trading and scheduling of electricity into your local ISO or power pool. It also allows real-time connection to market operators for data exchange.
- The Portfolio Analysis and Stress Testing module allows you to organize your trades into any desired portfolio structure across assets and desks, from generation to retail in order to create detailed cash flow and P&L analysis encompassing energy, charges, losses, fuel and operational costs. These valuations can be stress tested and undergo risk valuation via Monte Carlo simulations. This is a perfect tool for short and long terms portfolio management and optimization, as well as corporate earnings and P&L valuation.
QR Asset optimization. Using spark spread Monte Carlo Simulation of the plant on the actual ¼, ½ or 1 hourly market scale, optimize dispatch decision making by minimizing the Cash Flow at Risk of an optimal basket of energy, ancillary and reserves commitments.
