Accurately Estimate Revenue for a Complex Sales Scheme to Detect Deviations
This case study highlights the successful implementation of an automated solution to estimate daily revenues in a portfolio of 15 PV assets in Spain, selling a daily percentage of the energy produced under a Power Purchase Agreement (PPA) and the remaining percentage in the day ahead market. The solution compares estimated revenues with those that could have been obtained under different sales schemes and in balancing markets, based on actual prices. This solution improved revenue visibility, enabling more informed and flexible decision making with regard to energy sales strategy, and increasing negotiating power vis-à-vis the offtaker.
The client, a company with a portfolio of 15 PV assets in Spain, was looking to improve the visibility of its revenue optimisation strategy by selling power both under private power purchase agreements (PPAs) and in the day-ahead market.
The client faced the following challenges:
- Manual Point Analysis: Performing manual and ad hoc comparisons of income earned under different schemes was laborious and inflexible.
- Limited Visibility: The lack of an automated system made it difficult to continuously monitor the profitability of the sales strategy in comparison with different strategies.
- Informed Decisions: Making energy sales strategy decisions without continuous estimated revenue data limited flexibility.
RESULTS AND BENEFITS
Implementing the solution had a significant impact on decision making and revenue optimisation:
1. Informed Decision Making: Automated benchmarking enabled more effective decision making regarding energy sales strategy.
2. Strategic Flexibility: The daily profitability snapshot provided flexibility to adjust strategy according to different market conditions.
3. Time Saving: The automated process reduced the need for manual work and ad hoc analysis by the management team.
4. Improved Visibility: The management team was able to have an ongoing overview of the financial performance of the different sales strategies.
5. Revenue Optimisation: The solution facilitated revenue maximisation by considering the effects of different schemes and prices.
The applied solution for automated revenue estimation and benchmarking of different sales strategies in a PV portfolio greatly improved operational efficiency and financial optimisation. Process automation, daily estimation and automatic benchmarking provided important tools for effective management and greater flexibility in defining the energy sales strategy. This solution sets a valuable example for the management of similar projects in the field of solar energy and revenue optimisation.