Salzburg AG

Mathematical approaches convince Salzburg AG

Salzburg AG is the local multi-utility company for the city and the state of Salzburg. Salzburg AG‘s main field of activity is trade with electricity and gas and management of hydro power plants, including pumped-storage facilities in the Salzburg region. Furthermore, the company owns shares in the joint-venture power plants, Hamm-Uentrop and Lünen, and a wind farm near Borkum.

Convinced by Decision Trees’ mathematical approaches, Salzburg AG has been working with the DT.PFC model for the mathematical optimization of arbitrage-free hourly price forward curves since January 2008. This model takes all available market-relevant information (broker prices, settlement prices, off-standard products) into consideration. Moreover, Salzburg AG uses the stochastic optimization model DT.STORAGE for gas procurement and gas storage portfolios. Decision Trees has further developed the DT.STORAGE software in accordance with the individual requirements of gas portfolio optimization at Salzburg AG. The model has been successfully utilized in daily operations since July 2011.

Since January 2014, Salzburg AG uses DT.HYDRO for the dispatch planning of its hydroelectric power systems as well as for its energy trading. Through stochastic optimization, long and short term dispatch plans as well as integrated trading decisions in day-ahead, intraday and ancillary services markets (primary, secondary, tertiary) are optimized for the daily operation.

Additionally, Salzburg AG decided on Decision Trees for the implementation of a modeling and optimization system for its combined heat and power production, storage and distribution.