ENERGY

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PRODUCTION

CHALLENGE

  • Renewable energy is highly sensitive to weather conditions:

    • wind energy depends on the strength of wind speeds on wind turbines

    • solar energy production depends on the amount of solar radiation that reaches PV cells

    • hydro energy production depends on the quantity of rain that falls on river bassins. 

  • Weather-induced volatility of earnings leads to many issues:

    • It deteriorates financing conditions and therefore profitability

    • It decreases asset value

    • It increases the burden of corporate tax

WHAT WE DO

  • Training to weather market tools (weather derivatives and quanto options).

  • Independent risk management analyses with joint modelling of volume and price risks.

  • Design of parametric risk transfer solutions, perform basis risk analysis and independent valuation.

  • Quickly build interactive web applications to visualize data sets, analyse risks and structure hedges.

SERVICES 

 

 

 

 

A FEW USE CASES

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WIND

Low wind

SOLAR

Low solar radiation

HYDRO

Drought

TRADING

CHALLENGE

  • Energy prices are more and more dependent to weather conditions

  • Energy consumers prefer fixed energy prices whatever their actual consumption

  • Combined volume and price risks exposure is difficult to hedge with standard energy options and could imply high capital charge

WHAT WE DO

  • Training to weather market tools (weather derivatives and quanto options) and strategic advices for the set-up of weather trading operations

  • Independent risk management analyses with joint modelling of volume and price risks.

  • Design of parametric risk transfer solutions, perform basis risk analysis and independent valuation.

  • Quickly build interactive web applications to visualize data sets, analyse risks and structure hedges.

SERVICES 

A FEW USE CASES

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GAS

Mild winter 

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POWER

Mild winter & cool summer

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WOOD PELLETS

Mild winter

RETAIL

CHALLENGE

  • Energy consumption is highly dependent to weather conditions: the warmer the winter the lower the heating demand, the cooler the summer the lower the cooling demand.

  • Addition of weather insurance products for clients to keep control of their energy budget could help energy retailers differentiate from competitors.

  • Volatility of earnings deteriorates financing conditions, decrease stock value and higher the burden of income tax.

WHAT WE DO

  • Training to weather risk management

  • Design parametric risk transfer solutions

  • Quickly build interactive web applications to visualize data sets, analyse risks and structure hedges

SERVICES 

A FEW USE CASES

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HEATING

Cold winter

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COOLING

Hot summer

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INDUSTRIAL USE

Cold temperatures