INDEPENDENT EXPERT CONSULTING FOR THE WEATHER RISK MARKET
ENERGY
PRODUCTION
CHALLENGE
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Renewable energy is highly sensitive to weather conditions:
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wind energy depends on the strength of wind speeds on wind turbines
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solar energy production depends on the amount of solar radiation that reaches PV cells
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hydro energy production depends on the quantity of rain that falls on river bassins.
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Weather-induced volatility of earnings leads to many issues:
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It deteriorates financing conditions and therefore profitability
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It decreases asset value
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It increases the burden of corporate tax
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WHAT WE DO
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Training to weather market tools (weather derivatives and quanto options).
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Independent risk management analyses with joint modelling of volume and price risks.
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Design of parametric risk transfer solutions, perform basis risk analysis and independent valuation.
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Quickly build interactive web applications to visualize data sets, analyse risks and structure hedges.
SERVICES
A FEW USE CASES
TRADING
CHALLENGE
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Energy prices are more and more dependent to weather conditions
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Energy consumers prefer fixed energy prices whatever their actual consumption
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Combined volume and price risks exposure is difficult to hedge with standard energy options and could imply high capital charge
WHAT WE DO
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Training to weather market tools (weather derivatives and quanto options) and strategic advices for the set-up of weather trading operations
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Independent risk management analyses with joint modelling of volume and price risks.
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Design of parametric risk transfer solutions, perform basis risk analysis and independent valuation.
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Quickly build interactive web applications to visualize data sets, analyse risks and structure hedges.
SERVICES
A FEW USE CASES
RETAIL
CHALLENGE
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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.
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Addition of weather insurance products for clients to keep control of their energy budget could help energy retailers differentiate from competitors.
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Volatility of earnings deteriorates financing conditions, decrease stock value and higher the burden of income tax.
WHAT WE DO
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Training to weather risk management
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Design parametric risk transfer solutions
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Quickly build interactive web applications to visualize data sets, analyse risks and structure hedges
SERVICES
A FEW USE CASES
