Schedule Demo

Tag: Risk Management

  • Optimize Operations

    Optimize Operations

    Company

    Medium-size energy provider that serves customers in West Texas and Southern New Mexico.

    Challenge

    Optimize short-term operating plan for next 5-7 days including unit commitment, economic dispatch, outage planning, fuel management, and short-term trading.

    SATURN

    • Provided improved modeling of operational constraints that lower operating costs.
    • Enabled rapid setup, comprehensive what-if scenario modeling, and extensive sensitivity analysis.
    • Established cross-department collaboration and enabled online coordination.

    Impact

    • Reduced operating costs by 3 to 5% across several months.
    • Improved staff productivity and empowered team with on-demand solutions.
    • Facilitated coordination with trading team and enabled more effective trading.

    SATURN Applications

  • Retail Management for Load Aggregator

    Retail Management for Load Aggregator

    Company

    A small company providing energy to residential and business customers across 4 ISOs in the US.

    Challenge

    Streamline straight-through solutions for product design, pricing, supply costing, margin analysis, risk management, headroom analysis, and competitive positioning.

    SATURN

    • Enabled structuring, costing, and pricing highly customized products and offerings across multiple regions and customer types.
    • Facilitated power supply optimization and enabled on-going updates based on customers acquisition and attrition.
    • Empowered the risk manager with advanced risk management capabilities and enabled effective hedging strategies.

    Impact

    • Saved staff time and empowered team with advanced and integrated on-demand solutions – in minutes.
    • Enabled advanced headroom analysis, competitive positioning, effective product design, and dynamic pricing.
    • Eliminated operational bottlenecks and replaced inefficient EXCEL data management with online streamlined capabilities.

    SATURN Applications

  • Optimize Operation Planning

    Optimize Operation Planning

    Company

    Large integrated energy company in Scotland that operates a portfolio of diverse generation assets.

    Challenge

    Optimize operation plans to maximize margins subject to strict emission limits for a portfolio of diverse assets that include coal, gas, oil, hydro, and pumped hydro storage plants.

    SATURN

    • Implemented advanced optimization and stochastic simulation and enabled reliable production forecasts.
    • Enabled optimized operation planning under limiting constraints and associated costs, fuel use, and emissions.
    • Streamlined reporting, data visualization, fast simulations, and enabled extensive what-if analysis.

    Impact

    • Enabled optimized modeling of complex generation fleet and reduced operating costs.
    • Empowered on-demand analysis, fast simulations, and quick reporting and saved staff time
    • Automated workflows, enabled detailed reporting, and empowered confident decision-making.

    SATURN Applications

  • Model Oil Shale Production Planning

    Model Oil Shale Production Planning

    Company

    Energy company operating power production using oil shale extracted from local mines.

    Challenge

    Optimize the combined generation of electricity and steam using oil shale under various operational constraints and market price volatility and uncertainty.

    SATURN

    • Modeled one of the most complicated multi-product operating systems including oil shale, fuels, heat, and power.
    • Simulated correlated market prices and co-optimized multi-product operations for various market and operating conditions.
    • Empowered fast simulation and optimization, streamlined data setup and analysis, and provided on-demand reporting.

    Impact

    • Developed optimized framework for complex multi-product operations.
    • Enabled integrating advanced stochastic simulation with multi-product co-optimization.
    • Identified operation plans that reduce costs and manage risks.

    SATURN Applications

  • Optimize Power Sale Agreement

    Optimize Power Sale Agreement

    Company

    Large energy company that operates oil refineries in Northern and Southern California.

    Challenge

    Structure power sale agreement to maximize margins by selling surplus power while maintaining primary focus of meeting the power and steam needs of company refinery.

    SATURN

    • Developed re-usable framework to analyze and compare alternative power sale agreements with local utility and trading firms.
    • Streamlined market price simulation, optimized refinery operation, power sale analysis, and margin and risk management
    • Enabled cross-departments coordination, online results review, on-demand reporting, improved margins, and reduced risks.

    Impact

    • Structured improved power sale agreement that adds over 10 million dollars per year to the bottom line of one refinery.
    • Saved staff time, improved organization skills, and enabled cross-departments collaboration.
    • Empowered advanced optimization of refinery operation that enabled improved analysis of plant modernization.

    SATURN Applications

  • Forecasting and Position Management

    Forecasting and Position Management

    Company

    Integrated company operating a fleet of diverse generation assets in eastern Texas.

    Challenge

    Develop short and long-term operating plans to meet customer demand subject to state and federal regulations including FERC, NERC, and Texas PUC.

    SATURN

    • Implemented market calibration that derives simulation parameters and enables reliable market price forecasts.
    • Integrated market price simulation, generation optimization, load analysis, trading, and position management.
    • Empowered advanced stochastic simulation of generation production, costs, and margins.

    Impact

    • Empowered same-day analysis of management requests and enabled decision-making with confidence.
    • Automated customized daily reports for analysts, managers, and executives.
    • Streamlined data setup, reports visualization, and cross-departments collaboration.

    SATURN Applications

  • Fuel Costs Hedging for an Airline

    Fuel Costs Hedging for an Airline

    Company

    International airline that operates a fleet of over 50 aircraft across 4 continents.

    Challenge

    Improve hedging strategy by using simulation-based forecasting and risk management solutions that enable advanced risk metrics and more accurate fuel cost forecasting.

    SATURN

    • Simulated most likely future jet fuel prices using most recent forward curves and captured market dynamics and price volatility.
    • Developed dynamic hedging strategies that comply with risk policy and analyzed impacts on airline margins and risks.
    • Empowered fast analysis of alternative strategies and enabled developing improved hedging and regular updates.

    Impact

    • Enabled advanced simulation-based analysis of structured hedging alternatives.
    • Identified effective risk management strategies that significantly reduce extreme risks.
    • Developed re-useable framework that enables fast updates and dynamic hedging.

    SATURN Applications

  • Enhanced Maximo Solutions

    Enhanced Maximo Solutions

    Company

    Consultant that deploys and supports IBM’s Enterprise Asset Management Maximo software.

    Challenge

    Improve Enterprise Asset Management solutions by integrating engineering and operating decisions with market-based economic and financial considerations.

    SATURN

    • Developed a framework to integrate IBM’s Enterprise Asset Management Maximo software with SATURN.
    • Enabled improved asset management solutions through advanced market modeling and margin management.
    • Facilitated including operating margin and financial risk management considerations in asset management.

    Impact

    • Enabled improved solutions that balance reliability-risk-margin tradeoffs.
    • Integrated asset management with financial risk management solutions.
    • Empowered enterprise resource planning and enabled online collaboration.

    SATURN Applications