Renewable generator maximises return

RENEWABLE GENERATOR

MAXIMISES RETURN

Quick Facts

Biogas CHP technology

Traded PPA export contract established

Traded performance above market average at £50/MWh

Additional benefit from peak trading strategy and embedded benefits

RHI and FIT subsidy schemes to coordinate

Background

With a multidiscipline agricultural background, a decision was made by this family business to diversify and invest in an on-site biogas CHP facility, coming online in 2014. Following previous working relations, the generator turned to Optimised Energy to optimise revenues from their exported power from Q2-16. Additionally, Optimised Energy manage the generation subsidy element, ensuring compliance and prompt payment to avoid impacting cash flows. 

Challenge

Taking responsibility for selling the exported power coincided with a record low market, as power and gas followed a plummeting oil price downwards. Our remit was to achieve the highest price possible, without being over exposed to index and spot markets which were deemed too risky by the generator based on our assessment of market volatility at the time. 

18.8%

Traded price benefit against competitor

£900k

Annual power production revenue

Solution

Given the low markets, our advice was to avoid any long-term price commitment. With a suitable consistent export profile, a short-term traded contract was recommended. Considering the client’s risk appetite, a semi-aggressive trading strategy was adapted, resulting in a combination of price certainty and proactive trading to achieve as high a price as possible without taking on too much exposure. Index and spot markets would be continuously monitored with nominated volumes being strategically proportioned.

Optimised Renewables

Results

As the market entered a bullish run throughout the summer of 2016, opting for the short-term traded contract proved to be the correct decision. After a tricky initial trading period, our trading team took advantage of market volatility where possible. Following the extension of the contract, we caught the market at record highs, executing Summer-17 baseload trades in excess of £50/MWh.

Our on-going approach will continue to seek the best available market prices while protecting against sustained market falls.

“Our trading strategy has been successful to date, capitalising on challenging markets while protecting against falling prices.”

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Renewable Energy Generator Summary

The export of renewable energy is subject to the complexities of the wider UK energy platform and volatile market drivers. If you’ve been used to standard fixed price purchase agreements from utilities or brokers, you’re not realising the full value of the renewable energy you produce. From anaerobic digestion to wind and solar, Optimised Energy’s award winning Renewables Team can help you get the highest price for the energy you generate, whilst protecting you from the risk of market downturns.

About Optimised Energy

Discover our tailored approach to your energy needs 

Contact or call us on +44(0)1253 209 000

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BLACKPOOL - HQ

109-112 Lancaster House,

Amy Johnson Way

Blackpool

FY4 2RP

England, UK

01253 209000

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87 High Street

Nailsea, Bristol

BS48 1AW

England, UK

01275 859100

ASHBY DE LA ZOUCH

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Ivanhoe Park Way,

Ashby de la Zouch, Leicestershire LE65 2AB

England, UK

0333 370 2021

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The Oast

62 Bell Road

Sittingbourne

Kent ME10 4HE

England, UK

0333 370 2023

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