Everything You Need to Know About Energy Analytics: How Businesses Can Benefit

Do you want to make the best use of your energy data? Energy markets are becoming continually complex with increasing data and reporting. This warrants the need for advanced risk management strategies and analytics tools that equip you better to handle the time-sensitive and volatile markets.

Before we dive into more details on energy analytics, you might want to ponder if your existing tools are sufficient for portfolio analytics, market risk, and credit risk management.

Why Is Energy Analytics More Important Than Ever?

Businesses are well aware of the geopolitical uncertainty and pressures related to non-financial factors including environmental, social, and governance. Moreover, the focus on alternative, cleaner fuels, and tightening regulations are not making it easier either.

That is why understanding the value and managing your energy portfolio has become more important than ever. To act on time, you need to forecast downside events, and management of data, automation of analytic workflows as well as the development of actionable risk reports are critical for that process.

Moreover, access to energy data helps you avoid human errors and subjective bias to help you make rapid, profitable data-driven decisions.

Commodity Traders & Energy Analytics Tools

Whether you are handling single transactions or bigger trading portfolios, energy analytics tools for commodity traders should offer valuation, optimisation, and risk management. You should be able to assess your portfolio risk and utilize risk reduction strategies. Monte Carlo simulations can also prove useful in capturing cash flow dynamics and uncertainties.

Why Your ETRM Needs to Be Equipped with Advanced Risk Analytics

You may already have large volumes of transactional data from different exchanges and price-feed systems. Implementing ETRM (energy trading and risk management) software equipped with advanced data and risk analytics tools can help you

• Supplement traditional and strategic data assets with data analysis 

• Handle real-time operational challenges and propel strategic growth

• Remove subjective bias

• Take decisive actions when time matters the most

A suite of Analytics and Visualisation Tools You Need

To stay a step ahead with data-driven decisions, you may need the following energy analytics tools:

• What-if scenarios

• Portfolio analysis

• Monte Carlo simulations 

• Margin optimization 

• Hedge effectiveness 

• Risk reduction strategies 

These tools can help you optimise deal flows, valuations, precision and speed, stimulate risk factors such as weather and load as well as forwards, basis, and spot prices, trade including physical assets, handle and value varied deal types and contracts, evaluate mark-to-market (MtM), value at risk (VaR), cash flow, and cash flow at risk (CFaR).

Final Words

Energy trading faces new operational, market, and credit risks. The management team need reliable, real-time reporting whereas risk managers rely on AI-based decision support systems to mark profits and add value to the businesses. Inatech in partnership has, therefore, integrated advanced risk analytics in Techoil, an industry-leading ETRM solution for traders, risk managers, marketers, and finance personnel.

To know more about how you can utilise data analytics to make profitable, timely decisions, click here!