Markets / Power

Trading Services

 

Your Challenges

Accurately forecasting your customers long term cashflows and earnings for their complex portfolio of physical generators and financial assets

Educating your clients about the risks and sensitivities of new trades and hedges as well as how changes in the forward curve, or a how a repeat of a historical event, might affect their portfolio

Modelling and risk managing multiple clients within a single system and database

Providing clients with consistent and transparent results so they can trust you with running their risk management or trading strategies

We Understand Your Market

With the increasing complexities of risk managing a portfolio and an increasing number of smaller players in the market that are unable to manage that capability in-house, they are turning toward outsourcing this capability to a professional manager. As their manager, you need to efficiently manage multiple cross commodity portfolios whilst providing value-adding advice.

Be confident that you are working with specialists that understand your market challenges. With many years of experience, we see your energy risk management and trading services concerns from a practical, real-world perspective.

Our Solution

Lacima offers two solutions for Trading Services companies: Lacima Trader and Lacima Analytics – providing a complete solution to support your client’s trading and risk management requirements.

Lacima’s solutions use the same consistent models and methodologies to capture the unique market characteristics whilst providing the comfort of stress testing and scenario analysis tools to forecast future uncertainty.

Whether you are assisting your client’s in Trading, Structuring & Origination or in Risk Management, use Lacima’s solutions to accurately value power & gas contracts and physical assets and support decision making including measuring the distribution of earnings at risk, cashflow at risk, and value at risk.

You can enjoy a range of benefits including:

  • Value and hedge a client’s electricity and portfolio of thermal, wind and hydro physical generation assets with wide ranging plant characteristics and constraints right through to financial trading contracts to capture portfolio value and determine optimal hedging strategies for the client to undertake
  • Flexibly model renewable assets using a range of different statistical models which means you can use the best model for each client dependent on their unique asset characteristics for a particular market. Capture characteristics such as sub-hourly prices, negative price and generation, daily averaging, shaping and seasonality of generation (including for wind and solar).
  • Analyse and drill down to a granular level to give your client’s confidence as to your recommendations on the appropriate hedges for their portfolio of generation assets like coal, CCGT, nuclear, wind, hydro, solar etc.
  • Optimise a client’s physical generation portfolio by modelling physical constraints on generators like ramp rates, minimum up & down times, heat rates curves, outages across medium to long term timeframes.
  • Obtain decision support to help your clients in asset valuations for M&A activities, trading strategies for gas storages (using a variety of valuation strategies like intrinsic, rolling intrinsic, spot optimal or basket of spreads), VPPs and power purchase agreements and many more
  • Perform Scenario Analysis for a wide range of user defined parameters, forward curves, portfolio mixes or volatilities
  • Calculate full distributions for your client’s revenues, costs, profits and volumes as well as user defined percentiles (e.g. 5%, 50%, 95%)
  • Value, perform sensitivity analysis and stress test a client’s tolling agreements, off-take agreements and power purchase agreements
  • Analyse and report the Greeks for client’s with large trading books of power derivative deals