Energy Planning & Analytics Software: Market Power
Market Price Forecasting
Market Power is a complete system that forecasts energy market prices as well as capacity market prices.
Market Power provides valuable information on the dynamics of the marketplace through its ability to determine the affects of transmission congestion, fuel costs, generator availability, and load growth on market prices. It easily and quickly delivers the hourly forecasts of mid- to long-term electric market prices needed for critical and timely decision-making. This best-in-class solution provides users the option to perform either a dual commodity (energy and capacity) or a single commodity (energy only) simulation.
Key Features:
Market Power has the ability to forecast market capacity prices. The value of capacity, along with hourly energy prices, determines the profitability of existing generating units, as well as dictating the viability of new market entrants. The system makes decisions related to adding new units, mothballing existing units, or making mothballed units operational again, based on a 12-month price/cost look-ahead. Therefore, Market Power can determine the viability of replacing existing generation with new technology based on market drivers.
Market Power generates market price forecasts by utilizing:
- Market-Based Supply Forecasts
- Determine dynamic impact of demand/supply balance
- Analyze over/under supply markets
- Select and add economically justified resources in the regions where future resources are unknown
Distribution of Market Prices Around Fundamental Uncertainties
- Determine capacity and energy market relationships
- Understand risks of fuel price, demand, hydro, unit outages, and general economics on market prices through Monte Carlo Simulations
Broad Regional Economic Asset Tradeoffs: Identify regional economics for both generation and transmission investments
- Facilitate flexible geographic selection
- Represent the breadth of market influences and geographical boundaries with accuracy
Key Benefits:
- Perform Monte Carlo simulations around uncertain demand, generator availability, hydro conditions, fuel prices, and economic conditions
- Evaluate capacity mothballing, expansion, and retirement alternatives based on economic analysis
- Utilize market-driven algorithms, adaptive market simulations, flexible data structure, and customized reports
- Maximize profits by supporting market-based investment decisions
- Evaluate deviations from economic equilibrium supply markets and their inputs
