Optimisation through a component framework

The challenge of implementing the most suitable ETRM software solutions for energy companies trading and hedging multiple physical commodities in numerous locations has become increasingly daunting. Paul McLean-Thorne and Tim Hughes explore the options

On the one hand, an energy company needs its systems to be integrated, both to exploit the potential in its value chain as well as to manage its cross-commodity exposure. Given the dynamically changing nature of the energy business, flexibility here is vital. Essentially, the organisation needs to know its integrated risk position in order to hedge efficiently, optimise its asset optionality, identify arbitrage opportunities and avoid costly errors (see figure 1).

On the other hand, attempts to