Energy procurement optimization for a large consumer
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Situation
A German car manufacturer has energy-intensive assembling facilities. They own a power production unit and have access to forward contracts, bilateral contracts and the pool market.
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Complication When planning for a medium-term horizon, the consumer has to decide which futures and bilateral contracts should be signed before making the short-term decisions related to pool trading and self-production.
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Solution In a simulation-based framework, we redefined the consumer's objective by minimizing its expected cost over the given planning horizon, while controlling the risk of cost variability, by means of the Conditional Value-at-Risk. This resulted in a €65 Million decrease in risk-adjusted cost over 3 years.
What clients said aboutour projects
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Bron Sharman Senior Oil Trader “Unlike many advisers I’ve worked with, Trading Integral Solutions don’t have to pretend to be interested in their clients: they focus on what really matters and strive to add value in an optimal way.” Bron Sharman, Senior Oil Trader at SOCAR Trading -
Olga Kutuzova IFRS Group Manager "Trading Integral Solutions applied high quality standards when they delivered their project to us. We benefited greatly from our interaction with their highly skilled team of experts!" Olga Kutuzova, IFRS Group Manager at Novatek Gas & Power -
Jaroslaw Wajer Partner "I have cooperated with Trading Integral Solutions several times. They supported us during the design and implementation of trading departments and company strategies for our power utilities clients. I appreciate their trading expertise and profound knowledge of risk management. I would truly recommend cooperation with Trading Integral Solutions." Jaroslaw Wajer, Partner Performance Improvement at Ernst & Young