Energy

We have been closely working with the electricity industry since the early days of the deregulation process and have inspired energy-sector professionals into financially savvy and customer-driven decision-makers. We have two robust solutions available for the energy sector: a CO2 emissions management simulation and a general electricity company operations simulation, SimPower.

Key deliverables from CO2 emission

1. Crystallise the business implications of CO2 emission trading by linking it to power sales and production, and bottom line performance
2. Deliver an understanding of the emission trading system’s (ETS) implications on short term plant operation – from power, heat, and customer perspectives
3. Help to assess the long term impacts of ETS and its consequences on company and plant profitability (considering CO2 allowance costs, fuel prices, cost of capital, plant value alterations etc). Non-emitting plant types and electricity/heat price changes included.
4. Promote better risk-management by allowing managers to simulate the risk involved in CO2 allowance price volatility in accordance with other power company risk management such as plant / fuel portfolios as well as hedging with derivatives.

Key deliverables from SimPower solution:

1. Improved understanding of customer behaviour, pricing, and marketing, thus leading to more profitable customer relationships and marketing decisions.
2. Improved understanding of the dynamics between electric power supply (own production, contract purchases, spot-market), heat supply, and spot and derivative prices.
3. Improved understanding of the implications of variations in the electric power market price (electric power exchange), thus improving risk-management skills.
4. Improved understanding of value-based-management, thus increasing the company’s long-term profitability and shareholder returns.
5. Improved financial management skills, thus leading to more effective use of resources and better investment decisions.
6. Improved teamwork and communication skills.

Clients:
Fortum, Enel, Helsinki Energy