Risk management is an essential task for energy buyers and sellers in the futures markets, bilateral contracts or PPAs. The risk of the product portfolio must be controlled and managed.
Hedging is essential to reduce market price risk on the product portfolio. Through hedging, losses derived from unfavorable movements in market prices are reduced or eliminated.
It is very useful for agents to receive alerts to know the best time to buy or sell an energy product in the futures markets.
Medium and long term forecasting services with associated probabilities are a fundamental input for risk assessment.
At AleaSoft we provide forecasting reports for the main electricity markets in Europe, that are a fundamental input for assessing the risk of a portfolio and for analysing opportunities for hedging.
These reports are essential for all agents who buy or sell energy such as traders, utilities, retailers or large consumers.
Accompanied by experts in the energy markets
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Forecast made in November 2010 of the prices of the electricity market in Spain. The graph shows the success of the forecasts and the confidence bands. An important aspect to consider is that price oscillates around the expected value. This feature will continue to be maintained in the future, therefore the importance of the quality of the forecasts and the associated probabilities.