Production and Trading working close together Strong partnership - Siemens and Atos for ETRM www.siemens.com/smartgrid The business challenge Market liberalization increases the sophistication and complexity of energy trading Ever more varied and complex portfolio of energy contracts makes an effective risk management approach essential Integration of Gas and Electricity industries through generators with CCGT and retailers supplying both commodities to customers The rise of renewable energy has increased the number of players in the generation business The ETRM integrated solution connects the two sides of the energy equation, generation and trading, including the Atos PTRS solution, alongside Siemens‘ jROS solution for generators, ensuring the best possible combination of risk reduction & profit optimization across the entire value chain. jROS from Siemens for resource planning, generation scheduling and optimization integrating RO and HTC, providing the features Expansion planning of generation resources (companies) Resource optimization on fuel and electricity markets, analysis of physical risks using Monte Carlo Simulation Siemens jROS and PTRS from Atos Determination of economic key figures for trading decisions on day-ahead and intraday markets based on the physical resources Determination of final schedules on all kind of generation resources Answers for infrastructure and cities 8c732c7b-d2c4-4177-8b97-f6a19532f327.indd 2 2013-01-31 12:20:43 PTRS from Atos for managing and optimizing trading transactions, a comprehensive trading toolset Covering all trading requirements: Long-term contracts; Spot deals and Real-time transaction Physical to financial deals Taking products from Power Exchanges to system operator markets Bilateral transactions tailored to counterparty needs Wholesale to retail The customer benefits are striking. Improved efficiency in short term and real time markets, production cost savings up to 10% and seamless integration and communication connecting front end trading and middle office: Seamless data flow between management of contracts and management of physical assets, reduces risk of wrong decisions Optimization of physical assets gives better key figures for trading than rules of thumb (clean spark spread / clean dark spread) Consideration of physical risks by stochastic optimization reduces all-over risk of the combined portfolio The software for solution for Trading & Portfolio Management from one source reduces the effort+risk in the project implementation Smooth, consistent integration with ERP and CRM The power of Siemens - Atos in the energy market Siemens, & Atos deliver first successful project implementations based on their joint investments and collaboration in the energy market. The integrated ETRM software solution is designed to significantly boost the profitability of power generation and trading by optimizing the bid creation and by providing a seamless data flow at IT level. This furthermore saves costs for integration and reduces the project risks. “ EDP- HC Energia: 1st use case of jROS and PTRS customer A first joint use case exists at EDP Producao in Portugal and its Spanish subsidiary HC Energia. Mid term planning for the complete generation portfolio is performed with the recently upgraded jROS installation at the head quarter in Lisbon. HC Energia on the other hand, uses PTRS as representing trading in the Iberian market and is currently expanding modules to use in the areas of distribution, metering and balancing. Revenue growth Portfolio analysis and optimization at all levels of the business cycle, from generation assets to energy contracts, will increase trading revenue, while preventing major losses by applying effective risk management to the portfolio. Production cost optimization State-of-the-art mathematical optimization leads to costoptimized generation schedules, with improvements of 1–10% compared to manually derived schedules or legacy optimization techniques, like Merit-Order-Lists, or Lagrange Relaxation. Time-to-market Improved time to market and faster decision making in intra-day and balancing markets where return/losses per MWh are often the largest. Alignment of front and middle office ETRM provides extensive support to business processes for scheduling strategy and trading execution, allowing perfect alignment/communication of both departments, in time to business demand. ETRM: Energy Trading & Risk Management PTRS: Power Trading and Retail System jROS: Joint Resource Optimization and Scheduler RO: Resource Optimization HTC: Hydro Thermal Coordination Answers for infrastructures and cities 8c732c7b-d2c4-4177-8b97-f6a19532f327.indd 3 2013-01-31 12:20:43