What about the other services that Price it offers?
We’ve worked closely with mid-sized utilities since we started Price it, our first client was a Stadtwerk after all, and are able to develop software, models and tools that help our clients manage their portfolios and assets effectively. Our software offering allows us to make price simulations that cover multiple commodities and markets – essentially you get thousands of PFCs with that – based on sophisticated cross-commodity models.
As an example, we’ve helped some companies make investment decisions – such as how much district heat storage to construct for their power plant – by using our skills to develop precise valuation models.
Beyond that we are able to provide services to power plants – Combined Heat and Power is especially interesting in that scenario – that help managers decide when to schedule production and when to conserve their storage reserves.
In the future, more and more companies will need these services as the market becomes ever more volatile and fast-paced. The growth of intraday trading in electricity markets, partly because of renewable generation, is an excellent example of this. For power producers, especially larger plants, it’s going to be ever more important to be able to anticipate movements in markets. Which is exactly what we’ve been trying to do for the last 16 years!