Are the high gas transport costs hampering the business case for Dutch gas storages? The ACM asked KYOS to investigate this situation.
Cointegration between power and fuel prices stronger than ever
KYOS calculated that in the German market the speed of cointegration between power and fuel prices increased. This is contrary to the common belief that power prices become less dependent on fuel prices due to the renewables penetration.
White paper: Benefits of outsourcing energy analytics
In the years 2000 energy companies built up large trading teams, with even larger teams for back office, middle office, portfolio management and risk management. Now that the times have changed, energy companies are forced to scale down rapidly. In this white paper publication, we describe how energy companies can reduce costs while improving their analytic capabilities and take better decisions.
Energy Risk: implications of carbon floor on power plant hedging
The UK carbon floor raises the cost of CO2 emissions by power producers and thereby increase power prices. The mechanism has important implications for the valuation of power stations. KYOS explains how the UK carbon floor impacts delta hedging of power stations.
KYOS chapter in best-selling energy risk book by V. Kaminski: gas storage pricing and hedging
Cyriel de Jong has completely rewritten his chapter on gas storage pricing and hedging, which provides an excellent description of the best-practice trading and valuation strategies for gas storage.
Journal of Natural Gas Science and Engineering: Gas storage review article
Various approaches have been suggested for the valuation of gas storage. Of those approaches, the most general ones are based on Monte Carlo price simulations. These approaches allow the evaluation of different market trading strategies and different assumptions about the underlying price process.
KYOS report: Use renewable production information for a green price forward curve
In this report we study the effect of renewable power production on the intra-day shapes in Germany. The analysis shows that green production is an important component. Furthermore, the report shows that the sensitivity to renewables varies per hour and weekday.
White paper: How to effectively hedge the value of a power station
Operators of power stations try to maximize the income from their assets. Power plant valuation models aim to predict the total value that can be made in a future time period. With delta hedging, this value can partly be locked.
ET: How renewables shape the future in Germany
In 2012, the German capacity of solar energy passed the 32 GW mark. Together with the growth in wind power generation, this has depressed market prices. In this article, we take a detailed look at how this is further going to shape future price levels
White paper: Guidelines for valuation of real options in energy markets
To improve power plant hedging decisions, a range of methodologies is available for forward curve building, Monte Carlo simulation, (stochastic) dynamic programming, and least-squares Monte Carlo. This document describes the main methodologies and provides a few tests for their quality, particularly focusing on power plants.