Actual Power Plant Valuations in Europe – monthly update

3 May 2018

Overview of actual Power Plant Valuations

power plant turbineEvery month KYOS publishes a short report about the profitability of European power generation. It covers the three major markets: Germany, France and Great Britain. Please use our report to benchmark your own findings. How do these actual power plant valuations translate to your own situation? How profitable is your business? The report is a reflection of the actual power plant valuations made with our software models KyPlant and KySim.

First of all, it shows the profitability of clean dark and clean spark spread options. It takes not only the realized values into account, but also the expected future values. Furthermore it includes the spread option products. These are a benchmark for the profitability of actual power plants, which have a wide diversity of production parameters.In addition, we have added graphs to show the development for realized and estimated values, both for 60% and coal 46%.

Monthly Power Plant and Option Reports

Please find below the corresponding links to the Power reports:

# 15 May 2018 Power Report

# 14 April 2018 Power Report

# 13 Mar 2018 Power Report

# 12 Feb 2018 Power Report

# 11 Jan 2018 Power Report

# 10 Dec 2017 Power Report

# 9 Nov 2017 Power report

# 8 Oct 2017 Power Report

# 7 Sept 2017 Power Report

# 6 July 2017 Power Report

# 5 June 2017 Power Report

# 4 May 2017 Power Report

# 3 April 2017 Power Report

# 2 March 2017 Power Report

# 1 February 2017 Power Report

We have used our KYOS software and models KyPlant and KySim to perform the valuations for this report. The outcome or simulation values are the average across a large number of Monte Carlo price simulations. The models are using the least-squares Monte Carlo methodology to derive the optimal dispatch (exercise) of the products. LSMC

What’s the value of your Power Plant?

You can use these figures to benchmark the intrinsic and extrinsic value of your own plant. How does your plant compare? Please contact us if you would like our help in getting data for your market and plant situation. Use the form below (in the black section) and select “Request a demo”.

Optimize your Power Plant Dispatch

Use the KyPlant model to optimize your plant production by calculating your optimal dispatch – on short term and longer horizon. Make either daily production decisions for the spot market. Or, for forward markets, let the KyPlant model show you the optimal intrinsic hedging and delta hedging strategies. Especially for summer months with low intrinsic values, active delta hedging is required to capture the most of the extrinsic value.

Furthermore, an intuitive and realistic Monte Carlo simulation model forms the basis for the extrinsic values. A combination of forward and spot trading strategies is applied to the simulated price scenarios, using dynamic programming and least-squares Monte Carlo. Most importantly, 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.

KYOS valuation software is widely used in the energy industry. You can find more information about our power plant valuation software on our solutions page. Contact us for more information about the models and assumptions underlying this report, or to request a demonstration of the KYOS software via the form below or e-mail us: info@kyos.com. Please let us know what you think about this report – we do hope you find it useful! Are you missing information? Or do you have other suggestions? We look forward to hearing from you!

 

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

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