How to Get a “Triple Win” When Mitigating Risk
When we gather in Houston next month for EMC 21, the theme will be around the topic, “Mitigating Risk in Retail Energy.” There won’t be a shortage of talking points.
Risk comes in many forms. It can be:
- Bad data, which means garbage in, garbage out.
- Inadequate systems and processes that do not process and translate the data seamlessly, causing gaps and inaccuracies along the way
- From bad models and variables being used in the assumptions of demand and generation. From mismanagement of the risk policies that should be intended to guarantee margins and protect financial performance.
As veterans in retail energy, it feels like we have seen it all but, surprisingly enough, this is more the rule than the exception despite advancing technology.
Our industry is predominantly built with antiquated systems servicing an outdated grid that is now challenged by new sources of renewable power. Anyone dealing with data exchange protocols understands that our ISOs and utilities have done little to advance their tech. Combined with systems and processes that depend on various end points, fragmented by various vendors and, well, you end up dedicating countless hours cleaning and translating data rather than analyzing and taking proactive action.
A seamless end-to-end solution, built on the latest technology that is flexible, fast, and scalable, with the backbone of industry experts managing the operations, is the solution. This will provide the tools for retailers to get creative with their product offerings, providing true value to end users while maintaining operational excellence. No more worrying if you can offer it, manage it, and bill it; focus will not be on dollars at risk during extreme weather events, but rather the opportunities that can be derived from such.
It’s an opportunity to provide credit to clients that demonstrate good consumption behavior during peak hours at extreme prices. Not only would this alleviate the strain on the grid and help retailers manage their risk of losses, but it would also decrease customer costs. We call it a “triple win” — good for the infrastructure, the environment, and the end user. Today, this is a reality. But harnessing this takes integrated technology that can react in near real time.
We are looking forward to meeting you at EMC21. Let’s advance our industry together!
By Juliana Claussen, General Manager, Energywell
