Through project studies with our customers and scientific cooperation we analyze mathematical optimization methods in the energy industry for different use cases, e.g. the intrinsic and extrinsic valuation of power plants, gas storages and gas contracts.
We offer ex-post studies in order to determine the added value of stochastic optimization. The added value generated by a stochastic optimization model in comparison to a deterministic model can be quantified with an ex post analysis.
For this purpose, a power plant, gas procurement, or hydro power portfolio are identically mapped, each one in a stochastic and deterministic model. The daily portfolio management decisions are then optimized (once using the stochastic method and once with a deterministic method) over a historical period of time, e.g. the last gas year. In a deterministic optimization, the respective future daily price development is modeled with the daily price forward curve, and in a stochastic optimization, it is shown in a scenario tree. As a result, two different schemes for management and resource utilization are developed for the historical period. At the end of the management period, a comparison will show how much more profit the stochastic optimization series generated or to what extent it was able to cut costs.
A study on the use of DT.EnergySuite can be found here: Study