Post-event: Power price forecasting summit Barcelona
The power price forecasting summit assembled about 80 quantitative developers from all over Europe in Barcelona for its summer edition.
The two-day business networking event gave industry experts from analytic departments of power generation and energy trading companies, energy utilities, and electricity TSO/DSO the chance to educate the attendees on deliberate strategies to improve electricity price forecasting techniques. Specifically for the day-ahead and intraday forecasting for electricity markets, price modelling, and long-term electricity price analysis.
Cyriel de Jong was among the presenters and spoke about ‘Risk management of Renewable Assets’. He focused in particular on the stochastic and fundamental side of risk management. To view his presentation: Presentation KYOS Power price forecasting summit Barcelona June 2022
The winter edition will take place in Amsterdam, in February. For more information: Power Price Forecasting Summit 2022 (electricity-pricing.eu)
(Renewable) PPA Valuation
To begin with, Power Purchase Agreements, or PPAs often include complex pricing structures. For example, PPA’s typically consist of price floors, risk sharing elements and specific reconciliation mechanisms. In order to value your assets, you need a system that is able to capture all this.
Basically, the KYOS renewable risk management system provides a complete picture of the electricity portfolio with renewable energy PPAs and related hedges. As an illustration, reporting includes volumetric position, mark-to-market value, value-at-risk and earnings-at-risk. All modules are part of the KYOS Analytical Platform, a cloud-based software platform.
KYOS puts a lot of effort to find the right balance between offering a robust deal capture system and a fully flexible spreadsheet solution. We include standard PPA pricing mechanisms for certain countries and technologies. Additionally we offer you the unique feature to add your own pricing structures to the system. For this purpose, we offer an easy-to-use Python programming interface.
The KYOS renewable risk management system allows the user to analyze the effect of applying different hedging strategies to lock-in value of your renewable project. Strategies range from basic static hedges to advanced stack and roll strategies. If your project is in a market with limited liquidity, our system will show you the effectiveness of proxy hedging the exposure in other markets, even using different commodities than electricity.