On the free power market, the yield-optimised use of pumped storage power stations is a highly demanding task. The challenge is to make the best possible deployment decisions without knowing future power market prices or storage inflows. With HYDROPT, The Advisory House provides a software solution that meets the most complex mathematical optimisation challenges and is extremely user friendly.
HYDROPT is now the market leader in the Alpine region and used by many hydroelectric power operators. The application was developed within and for practical use. So HYDROPT has a wide range of functions, excellent performance and a high failsafe level, but is also ergonomic and can be smoothly integrated into availability, risk management and hedging processes.
HYDROPT shows its strengths especially in the complex mathematical calculations required for optimal management of energy portfolios. HYDROPT permits swift assessments and uses state of the art conceptual techniques. Its current areas of use are
1) Power plant optimisation
2) Risk management and hedging
3) Evaluation of expansion plans
4) Assessing options
HYDROPT models stochastic values such as market prices and inflows in the form of scenarios and then determines optimal power plant deployment based on the mean of all scenarios in the form of price limits for individual machines (market price above which the machines are deployed). This prevents wrong deployment based on only a single anticipated future course of events.
The net position and its insecurity form the basis for risk management and hedging. Risk parameters such as earnings-at-risk are calculated and the effects of different hedges on yield distribution are examined. Hedges and other positions can be subdivided into definable standard futures market products if required.
With the help of clear and easy-to-use graphic interfaces, planned expansion activities can be modelled in a very short time. By comparing the expected return after the expansion with the status quo, the added value of a planned investment can be calculated under various price scenarios and hydrological environments.
HYDROPT prices and optimises the use of the most diverse option contracts such as swings, virtual power plants and virtual pump storages. The inner value, current value and optimal use price of the options are calculated.
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