Report Market price risk regulated renewable assets Spain

12 March 2024

Market price risk assessment renewable energy assets Spain


KYOS bask risk assessment Spain March 2024[English below]

En esta nueva serie de reportes en inglés, discutimos sobre el riesgo al que los activos renovables en España deben enfrentarse bajo el régimen introducido por el Real Decreto RD-L413/2014 (y sus modificaciones en RD-L 10/2022).

En KYOS observamos que el mecanismo de la cesta expone a los activos a los precios del mercado. Nuestro potente motor de simulaciones de Monte Carlo cuantifica el riesgo de que esta pérdida sea incluso mayor al final del año. ¡Revisa nuestro reporte para saber más sobre el tema! KYOS ES Market Risk 6 March 2024

Market price risk assessment renewable energy assets Spain

In this new series of reports, we discuss the risk that regulated renewable energy assets in Spain face under the Royal Decree RD-L413/2014 (and its modifications in RD-L 10/2022).

We observe that the basket mechanism exposes asset owners to market prices. Our powerful Monte-Carlo price simulations engine quantifies the risk that this loss becomes even larger by the end of the year. What is the amount for this month? Check our report: KYOS ES Market Risk 6 March 2024

Renewable asset valuation

In order to value your assets, you need a system that is able to capture all elements including PPAs. KYOS is the leading provider of analytical software and data services in European energy markets. We offer an unrivalled web-based software platform to value and optimize energy storages. It will also allow you to manage a complete portfolio of renewable assets and contracts. KYOS is also the number 1 provider of hourly price forward curves for European power.

Depending on your needs, you can customize the KYOS renewable risk management system to quantify the risk of your regulated renewable asset or portfolio of assets. Compare the cash-flows of the PPA with sourcing power directly from the market to assess profits or losses. Also assess different dynamic hedging strategies, such as stack-and-roll and proxy hedging. In short, you will get a complete picture of your portfolio, including related hedges.

Contact us for a free demo!

More information on financial aspects of renewable power

Have a look at the E-Book that Cyriel de Jong wrote on “The financials of renewable power and PPA’s”. It provides more insight in the various methods, for example used in long-term or short-term forecasting, creating simulations and price forecasts. Highly recommended! When you sign up for our newsletter, you will get free access to this E-Book.