Risk Management Products
Energy Potential offers a number of risk management solutions. These can be procured individually or as part of a package.
Please contact us directly to discuss risk management products with one of our directors.
Please contact us directly to discuss risk management products with one of our directors.
Power Purchase Agreement (PPA) Assessment Model
The Energy Potential PPA model allows suppliers and generators to assess the income and risks associated with PPAs. The model can be used for:
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Value-at-Risk
Measuring the risk of an asset portfolio is one of the classic problems in finance, and a favoured solution is the Value-at-Risk (VaR) concept. VaR is a process that provides an estimate of the future risk on a portfolio of assets. Very importantly VaR allows the risk of products in a portfolio to offset each other, so that the effect of hedging risk is naturally captured by the risk measurement. Traditionally VaR has been used in Banking and larger Trading Organisations - no doubt related to the historically high costs of designing and implementation. We have a strong history designing, implementing and using Value-at-Risk (VaR) systems. Our VaR engine is designed to be low cost and require minimal configuration; but it does not compromise methodologically, and is based around a robust methodology used by many leading financial institutions, and fully compliant with Regulatory standards. The model and functionality can be used through Excel. If you can provide us with your risk positions, we will map to a standard format and your risk analysis follows. The Excel interface makes it very easy to use and an analyst could run your risk, fully independently, very quickly. The model in fact does much more than just VaR and can act as a full analysis and reporting suite for VaR, risk positions, and market risk data. You can read more about VaR is the note below which uses our engine to perform some example calculations.
Data solutions
Energy Potential has developed a comprehensive data warehouse. which is used for internal analysis and the provision of market data. This has an extensive history of price data across energy assets and we have a rich collection of fundamental data across power and fuels markets. This application has a chart application that sits on top of our data. This adds functionality to raw data sets and, for example, supports dynamic cleaning of data, manages currency and asset units conversions, and ensures that cross sectional consistency in all data. The flexibility of this system allows data to be added very easily, charts to be saved and output data sets exported to Excel. You can read more about the chart application with extensive examples here:
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