Managing risk in today’s complex, evolving energy industry requires the effective integration of deep subject matter expertise with sophisticated analytical approaches that are highly effective in identifying, evaluating, and mitigating uncertainty and exposure across the energy value chain.
For all risk assessments, we utilize prescriptive data analytics and sophisticated modeling methodologies that provide descriptive statistics to evaluate and communicate “meaningful uncertainty” vs. reporting deterministic, single-point outcomes. Our services combine the personal involvement of seasoned industry professionals with the resources of an expansive analytical network to effectively identify and manage risk across the following three functional areas.
- Energy/commodity hedging strategy
- Structuring, development, and implementation/optimization
- Market analysis and evaluation of impacts on commodity pricing, technology evolution, renewable integration
- Portfolio assessments to determine optimal economic capability and risk mitigation
- Locational and basis risk analysis for delivery and congestion risk mitigation
- Counter-party credit risk analysis and mitigation strategies
- Cross-commodity hedging assessments and structuring
- Assessments of financial vs. operational optimization to assesses impacts on equipment, capital budgeting, major maintenance, etc.
- Portfolio design optimization, technology and sunk cost exposure, bridging financial and physical attributes for optimal economic and operational performance
- Renewable energy resource curtailment assessments and exposure analysis
- Risk assessment of ISO, FERC, state, and local regulatory and environmental standards/goals on economics, portfolio design, and operations
- Market evolutionary risk and impacts, assessments of risk and exposure through comprehensive scenario/world-state analysis, and identifying key metrics for confirming market movements and optimizing real options