Power plant

  • Increase revenues of power plants and power products
  • Deal with all power plant characteristics and optionalities
  • Make quick calculations, fully automated
  • Enjoy easy interfaces with market and other data
  • Calculate accurate values and hedges with Monte Carlo simulations
KyPlant supports traders and plant owners in power markets. The power plant optimization software determines the value of power plants by quickly calculating the optimal dispatch. It also supports trading decisions and reports exposures. The real options-based model combines actual plant and contract characteristics with realistic price simulations. It can be applied to real physical power plants, but also to virtual power plants, spark and dark spread options, and power options. 

Benefits

1. Spot market: how to dispatch?

For day ahead and intraday markets, the power plant optimization model tells you what is optimal to do: produce or don’t produce? When prices change due to unforeseen circumstances, it could be optimal to change the dispatch decision on the intraday market.

kyplant-1.png

2. Forward market: keep the risk or lock in profits?

KyPlant shows which forward transactions are optimal to hedge risks and lock in profits. The user can choose between intrinsic hedging and delta hedging, two strategies to secure profits. It can provide hedge recommendations for the asset alone or for multiple assets together.

kyplant-2.pmg

3. Power Market: What is a fair price?

The power plant valuation model calculates the fair value of a power station. The model shows which part of the value is intrinsic and which part is extrinsic. To capture the extrinsic value, a more active trading strategy is required.

Extrinsic values are derived from an intuitive and realistic Monte Carlo simulation model. A combination of forward and spot trading strategies is applied to the simulated price scenarios, using dynamic programming and least-squares Monte Carlo. This type of valuation provides a fair assessment of the future value. Backtesting of the model is another feature: it shows how much money you would have made in the past, following a specific trading strategy.

Loading qoute.. Loading a qoute..

Features

Most KyPlant users optimize the power stations at individual plant level. But power plant optimization software is also used effectively for a portfolio of plants, for example connected by joint heat obligations and a heat buffer. Detailed technical characteristics of the power stations can be provided as input, including efficiency curves, a range of start types and curves, costs, trips, maintenance, start constraints, etc.
KyPlant is fully embedded in the KYOS Analytical Platform. With automated data feeds, up-to-date plant valuations are always available.

The power plant optimization software can be applied to real physical power plants, but also virtual power plants, spark and dark spread options, and power options.

Methodology power plant optimization

KyPlant uses advanced Monte Carlo simulation techniques. Important characteristics are cointegrated commodity prices, and a mean-reverting multi-factor model with long-term, short-term and seasonal dynamics. Users can also import their own price simulations or use those of KySim. Optimal dispatch and exercise decisions are based on dynamic programming and least squares Monte Carlo techniques. The volatility term structure and other simulation inputs are easily derived from historical data. Implied option volatilities may be used as well, by overwriting the historical volatility estimates.

Trusted by organisations all over the world

Other Solutions

Portfolio management / CTRM

Does your company have a significant exposure to commodity prices? Then KYOS has a cost-effective solution for your daily management. The KYOS CTRM offers a detailed insight in your exposures, expected cash-flows, Mark-to-Market and more.

Read more ›

Risk analytics

KYOS offers unique software for measuring portfolio risks in energy and commodity markets. The risk analytics include Value-at-Risk, Cashflow-at-Risk and Earnings-at-Risk.

Read more ›

Price analytics

Market prices, market price forecasts and simulations are essential ingredients in energy and commodity management. KYOS offers a suite of functions and quant models to create and analyze all these price series.

Read more ›

Contact KYOS

KYOS
Nieuwe Gracht 49
2011 ND Haarlem
The Netherlands

E-mail: info@kyos.com
Tel: +31 (0)23 551 02 21

Follow us

Contact us via the form below. We will reply within 48 hours.

Request a demo via the form below. We will reply within 48 hours.

  • This field is for validation purposes and should be left unchanged.

Book a training course via the form below.

  • (If available)
  • This field is for validation purposes and should be left unchanged.

Request a training course via the form below. We will reply within 48 hours.

  • This field is for validation purposes and should be left unchanged.

Plan a meeting via the form below. We will reply within 48 hours.

  • This field is for validation purposes and should be left unchanged.