Generation: Financial planning
A long-standing customer of ProCom was wondering whether he should make an investment worth millions in a heat storage facility. The idea was to use heat storage facilities to gain more flexibility in the existing power generation process which comprised conventional co-generation plants. The customer wanted to capitalize on the possibility of saving costs by storing power in the short term, depending on price trends for electricity and district heating. In order to contrast opportunities and risks against each other, realistic scenarios had to be developed that took into account all important deciding factors such as market-, price- and district heating- sales developments.
As a customer of ProCom, the company is able to use the BoFiT solution that was already installed. This meant that preparations to develop possible scenarios were quickly completed. In fact, there were already functioning models on which sample calculations could be based. ProCom experts were available for advice to generate the scenarios.
The key feature was BoFiT’s intelligent variant and scenario management. Based on the existing BoFiT long-term model, new scenarios were generated in BoFiT and a heat storage facility with varying heat content integrated. An electricity price / heat load scenario was generated and calculated by BoFiT based on these variants. A comparison of the results with the corresponding results without heat storage facilities gave a clear indication whether the investment was worthwhile or not.
A comparison of the options and scenarios with the initial scenario enabled the company to prepare a realistic forecast for the future, with the result that the company decided to make the investment in the two-digit million range.
BoFiT as an intelligent IT solution offers the feature “option and scenario management”. In combination with time series management, the required scenarios could be played through realistically.