The challenge
  • Escalation of conflict in Ukraine in 2022 caused an enormous worldwide spike in oil and gas prices
  • The majority of our energy generation assets are diesel generators, so maximising the value we get out of each unit of fuel is key
  • Forward prices for power were at record highs but there was a lot of uncertainty surrounding guaranteed price at time of delivery
The solution
  • Leaned into selling forward power products as the market rose to manage price risk
  • Reduced trading asset power and focused more on option trading to minimise exposure to fluctuating fuel prices
  • Buying out of unprofitable periods to conserve fuel
  • Anticipating low value periods and scheduling asset maintenance during these times to avoid outages