Assess your risk positions and adjust your hedges accordingly
Sources of renewable or green energy are the future. Do you own a solar park? Or do you wish to invest in a on-shore or off-shore wind farm? Are you operating a battery storage or pumped hydro facility? KYOS helps you with setting a price for your resources, as well as valuing your (renewable) power purchase agreements (PPAs).
(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.
A fundamental power market model to create long-term electricity price forward curves, important given the long duration of many PPAs.
Software modules to simulate price and volume risks. These are necessary if you wish to assess the future earnings and hedging strategies.
Furthermore, capture rate is an important parameter for PPA valuations. Our system can calculate this using historical data or using long-term fundamental price forward curves. Alternatively, the user can define its own capture rate.
KYOS offers support to value renewable Power Purchase Agreements (PPA). We accompany you through the entire PPA life cycle, with pricing, risk analytics and dispute resolution. We help you in getting the best deal for your PPA!
Use the KYOS PPA module in the following cases:
KYOS performs the main valuation of the PPA for either buyer or seller. In addition, we can also provide advice in structuring the PPA to make sure it is aligned with your company’s risk profile. This can be a one-off valuation request or under a framework agreement.
Another reason to use the KYOS valuations is when you wish to benchmark your own, internal, valuations.
Moreover, we are impartial. KYOS performs independent valuation of existing PPAs. Many PPAs have been concluded some years ago, and might include ambiguities which could lead to disputes between contract parties. We provide reliable support to settle such disputes in a fair way.
Data Services for renewable power assets
Generally speaking, market prices are at the basis of almost any function within energy and commodity management. The KYOS Platform offers various price simulations and packages. Of course we have made sure our price simulations can easily interface with data providers, storing all the data in a central price database. Furthermore, there is a range of standard functions for analyzing the data visually, and to export prices to Excel. The Platform also contains functions to analyze price spreads and calculate volatilities and correlations.
All data services can be delivered for one or more power markets in Europe, Turkey, and Japan. We have four options available:
Service A, daily: Forward, futures and spot power market prices of relevant markets
Service B, daily: Market-based hourly price forward curves up to end of 2023
Service C: monthly, long-term fundamental hourly price forward curves for 2023 – 2035
Service D, monthly: PPA valuation and risk metrics of a specific renewable asset
The KYOS PPA software model has a market price and forward curve database and uses an advanced Monte Carlo simulation engine – perfect to value all PPA characteristics,. Add various reporting and risk management tools.
# 1 Provider of analytical solutions for valuing renewable assets
Software modules for renewable power assets and ppa’s
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.
Sources of renewable power or green energy are the future. KYOS helps you with valuing your solar, wind, battery or pumped-hydro energy assets, as well as your (renewable) power purchase agreements (PPAs).
Natural gas portfolio management is all about managing price and volume risks. KYOS helps to optimize natural gas storage and swing contracts, and trade in the markets to maximize the flexibility value.