cquant-model-risk-management

Fundamental vs Simulation Models for Energy Portfolios

There seems to be some confusion regarding the differences between, and best uses for, fundamental and simulation models.  In part, this is the fault of the vendors, who try to sell their solution as good for everything. There is no individual model that should be used for every analytical task.  Recently I heard a chief officer of an energy company ask why his company needs …

throwing-money-away-software

Five Key Mistakes Companies Make When Buying Software

After 20+ years in software sales, it is safe to say that I have seen almost everything. At a recent energy analytics event, we presented the “Top 5 Mistakes” that companies make when buying enterprise software.  Amazingly, most companies make the same mistakes, over and over. Why is that? Vendors engage in sales processes dozens of times per year, but energy companies may only buy …

Energy Analytic Trends Mexico

Top 5 Energy Trends in Mexico

Mexico has become one of the most attractive emerging energy markets in the world. Since 2016, when energy reform was enacted to liberate the state-run power and fuel markets, there are only a handful of places in the world that shine brighter with opportunity for new business. However, opportunity in Mexico comes wrapped with uncertainty and risk. Like in any new market the panorama is …

Energy Analytic Trends Mexico

5 Tendencias del sector energético en México

México se ha convertido en uno de los mercados de energía emergente más atractivos del mundo. Desde 2016, cuando se promulgó la reforma energética para liberar los mercados de energía y combustible administrados por el estado. Solo hay un puñado de lugares en el mundo que brillan con mayor oportunidad para nuevos negocios. Sin embargo, la oportunidad en México viene envuelta entre la incertidumbre y …

risk-management-software-analtyics

Renewable PPA Primer: Financial Risk Assessment for Corporate Energy Buyers

Renewable energy purchases by large corporations are accelerating.  In 2017, large corporates bought over 5 gigawatts of renewable energy and we are on-pace to shatter this number in 2018 with over 7 gigawatts already purchased this year (Bloomberg article August 2018).  Telecoms and large technology companies are leading this charge and mainstream Fortune 1000 companies are not far behind.  In this rush to acquire renewable …

risk-management-software-analtyics

Tres pasos para comprender el valor y el riesgo de los PPA renovables

Los acuerdos de compra de energía renovable (PPA, por sus siglas en inglés) por mucho tiempo han sido importantes conductos de desarrollo para las energías renovables. Sin embargo, al igual que cualquier transacción estructurada, los PPA vienen con un cierto conjunto de riesgos que el comprador debe comprender completamente antes de comprometerse. Cada instalación eólica o solar tiene características únicas que se muestran tanto en …

energy-risk-management-software

Energy Risk Management Software: Build, Buy or Assemble?

When it comes to energy risk management analytics, the classic dilemma that most energy companies face is “build or buy”.  A dilemma is a situation in which a difficult choice must be made between two equally undesirable alternatives.  Later I will introduce the new alternative of assembling a risk solution.  First, let’s spend a moment describing how most energy companies get themselves into the build …

JP-Morgan-Cquant-Energy-GCARD

J.P. Morgan Center for Commodities: Three Steps to Understanding Value and Risk in Renewable PPAs

This article is based on the author’s recently-published article in the JP Morgan Center for Commodities Global Commodities Applied Research Digest (GCARD). Renewable power purchase agreements (PPAs) have long been important enablers of renewable energy development. However, like any structured transaction, PPAs come with a certain set of risks that the buyer should fully understand before committing to the deal. Each wind or solar facility …

cquant-model-risk-management

Nine Questions with Devon Williams, Risk Manager at Grant County Public Utility District.

Recently, I had the opportunity to sit down with Mr. Williams. In the following interview, he provides sage advice on risk analytics and how to grow awareness of risk-based thinking within an organizational culture. Q1:  Mr. Williams, as the Risk Manager for Grant County Public Utility District, what are your primary responsibilities? Chiefly I am tasked with developing our enterprise risk platform and integrating it …

Lifting the Veil on Hidden Risk in Renewable Power Purchase Agreements

Renewable power purchase agreements (PPAs) have long been important enablers of renewable energy development. They are a means to both providing the revenue certainty that project developers need to secure financing for capital-intensive wind and solar projects, and giving renewable energy buyers access to the renewable energy they desire without up-front capital outlay or the need for development expertise.This white-paper, the first in a two-part …