GridBeyond has launched an energy trading and hedging service it claims can halve business energy costs.
It says the new hedging service is part of a ‘whole of market’ offering to manage risk and optimise prices, alongside procurement and trading services. It aims “to take businesses from passive procurement to active energy management and trading powered by AI and deep data science”.
The service uses quantitative analysis and market intelligence to determine likely market movements and set up active procurement strategies that match the customer’s risk appetite. With volatility analysis, AI smart forecasts, optimisation and decision support algorithms it can take into account a business’s trading risk limits and its hedging policy to deliver procurement efficiencies, effective risk management strategies and options for leveraging flexible assets to reduce costs.
The company claims that with short or medium term risk-managed trading it can deliver up to 59% savings against average prices. Long term trading & hedging delivers up to 63% saving, compared with buying a full-year fixed price at the daily prevailing price.
It says that demand response combined with intelligent load management can deliver up to £62,500/MW/y of revenue.
Mark Davis, Managing Director at GridBeyond, said its system forecasts “everything from weather conditions, the need for balancing actions on the grid, to short-term wholesale market prices”. Using simulations to match site demand with renewable generation and battery storage assets helps businesses to “manage price risks, lock in long term price certainty, and reduce carbon emissions at the same time”.