Controlling power

Maggi Shippy-Ksionsk and Stefan Ulreich explain how portfolio risk management gives a company control over its energy procurement

The liberalisation of the electricity market in Europe has brought new challenges and opportunities to electricity suppliers and purchasers. Instead of common contractual agreements with fixed pricing, buyers can secure electricity from the open market and manage costs and pricing through portfolio management.

Portfolio management is used to analyse and optimise a customer’s load to minimise price and volumetric risk. Such analysis also takes into account the client’s risk appetite