FTR & CRR Analysis Services
The Situation
Power systems are incorporating nodal pricing of energy at an increased rate. Even systems not explicitly opting for a nodal pricing construct are nevertheless beginning to adopt pricing systems that more tightly couple the price and drivers of electric energy cost. Thus, system uses that cause transmission congestion and losses will be increasingly assessed charges aligned with system use.
Nodal pricing often incorporates an allocation of transmission use based on an historical perspective, accompanied by an allocation of rights or options for financial instruments that may hedge the congestion component of the nodal price. These hedges can be benefits or liabilities and choosing among allocated rights can be tricky as well as time consuming.
The Solution
Ventyx provides the market knowledge and analysis tools and techniques to provide clients with the insights necessary to mitigate congestion exposure and bolster the bottom line. Our comprehensive forecasts and analyses can assess which hedges are accompanied by financial risk and which are most valuable, as well as quantify and assess the impacts of anticipated system developments and evaluate alternative hedging strategies.
Hedging analysis begins with Ventyx's comprehensive energy market database, MarketVision™. This database undergoes continuous review and updating with current views of generation queue and transmission upgrade information. Extensive effort goes into developing forecasts for fuel and emission allowance prices, load growth, and all the detailed data essential to power system modeling, including powerflow models and transmission constraints. This database is utilized by our seasoned team of consultants along with Ventyx's comprehensive and flexible transmission planning/analysis tools.
PROMOD IV®, Ventyx's security constrained unit commitment and economic dispatch model provides all market participants and energy companies with the powerful tools needed to quantify market prices, identify binding constraints, and evaluate economic impacts of the specific constraints that have strategic significance to specific portfolios and business needs.
Consulting Resources
Ventyx has performed an array of consulting engagements tailored to assist clients with their FTR/CRR auction activities. These engagements have taken the form of more limited deliverables in terms of market price forecasts for client-designated nodes and trading hubs to very involved deliverables encompassing client-driven transmission/generation scenarios, price forecasts, and detailed determination of nodal drivers of specific prices and constraints.
Ventyx is continuing its long history of assisting clients with market and transmission congestion consulting services across all major power markets with recent and ongoing involvement in numerous support analyses.
