Flexibility Advisory Services
From Consulting Services
KYOS Energy Consulting provides a wide range of services to support companies with managing their energy and commodity assets. Whether you have – or wish to acquire – conventional or renewable energy assets, we have the right expertise you need. We offer our flexibility advisory services for example in: One-off deal valuation, Benchmarking, Hedging strategies, Arbitration.
Our consulting services are for all players in the energy industry. Not only energy companies, but also consulting firms, financial institutions, governments and other partners in (renewable) asset consortia – we can assist you with your projects, requests-for-proposals (RFPs) or inquiries. Our experts will answer any question you may have about e.g. flexibility advisory, valuation of assets, portfolio optimization, PPA or long-term power price predictions. We have more than a decade experience in the energy industry and couple this with solid mathematical modelling.
One-off deal valuation
If you are a bank, financial institution, pension fund, or other investor who wishes to invest in conventional or renewable assets: you will want to know if (and when) your investment will pay off. For conventional assets, like gas storage facilities or conventional power plants, we have dedicated software models which have become industry standard in the past decade. KyStore. our gas storage optimization model raises revenues from gas storage trading operations, provides accurate valuations and reduces risk with adequate hedge recommendations. For power generation assets, either gas, coal, biomass fired or a combination, the model we developed is called KyPlant.
We also offer specialized models for those who would like to invest in wind parks, either on- or offshore, solar farms, battery storages or pump-hydro facilities. The KyBattery model is for energy storage assets like pump-hydro storages, batteries or hydrogen storages. For renewable PPAs we developed the KyPPA model. Long term price scenarios are a key ingredient to analyze the economics of any investment case. Our fundamental power model KyPF is the right tool for this task.
Even if you use software from other vendors or your own internally developed models: it is always a good idea to periodically benchmark the outcomes. KYOS’ software is ideally suited to do so. Industry-wide knowledge, coupled with our superior modelling techniques result in gold-standard analytical models.
Are you aware that there might be bias in the models you employ? Most likely, the models you work with all use the same basis for different applications. We do not want to paint a doom scenario here, but assume your models underestimate the risk in certain price scenarios. Based on your data and analytics you and your colleagues will allocate risk capital, set risk limits and define hedge strategies. And then management decides and inform shareholders on the P&L and risk position of their company…. Just imagine the impact when it turns out that risks have been underestimated and large losses have to be reported!
KYOS can support your company in three ways to avoid bias of your valuations and risk reports:
- Use KYOS analytical models as the standard models in your company. This ensures that your company has valuations that are in-line with the industry. Separately, companies can benchmark the KYOS models with in-house developed tools.
- Benchmark your existing models with KYOS analytical models. Use the KYOS models in parallel to your existing models to identify valuation differences in an early stage. Alternatively, run them on a regular basis on a test portfolio.
- KYOS can perform a bench-marking study of your existing models. First, KYOS will test your existing models under various market conditions, then compare these results to KYOS’ models. We will give you tailored advice on where and how you might have bias in your models.
A key task for many companies is to define an optimal strategy to manage the risks in their complex portfolio of energy and commodity assets. KYOS can support you with this with our flexibility advisory services. We apply industry practices to analyze your portfolio of contracts and asserts, identify and measure the risks and propose a hedging strategy. Our asset models and risk management tools, including value-at-risk are used to support us during this process.
We can support you with expert views during disputes between contract parties. For example, KYOS performs independent valuations of PPAs, gas storages, long term gas contracts, power plants or other energy assets. We will make sure you get all support necessary to settle conflicts in a fair way. For more information see consulting services / arbitration.