Technology platform GridBeyond has launched a new energy trading and hedging service to support businesses navigate high cost and manage energy market volatility.
The product will offer active energy management and trading, helping to optimise a company’s use and assets, to “take businesses from passive procurement to active energy management”.
According to the GridBeyond, this will be achieved through a combination of quantitative analysis and market intelligence, which will forecast probable market movements and active procurement strategies according to a company’s risk appetite.
Inflation alongside the war in Ukraine have caused businesses to face a highly volatile energy market. To manage their energy contracts, an appropriate energy strategy is “essential for companies” to protect them from risk without overly restricting profit, the software company highlighted.
Some businesses looking to renew contracts recently have found themselves faced with increased costs of up by 250%.
A number of companies have therefore highlighted the need for a more active management policy in response to the current volatility, with data platform Origami for example, urging companies to be “ruthlessly entrepreneurial”.
GridBeyond’s service also offers efficient risk management strategies using “AI smart forecasts, optimisation and decision support algorithms, and trading risk limits, coupled with a review of a business’s existing hedging policy”.
The product, the company stated, could deliver of up to 59% savings against average process for short-to-medium term risk management trading.
Managing director at GridBeyond, Mark Davis, has said that by forecasting a number of factors, including short-term wholesale market prices and weather conditions, the product “runs Monte Carlo simulations to match company site demand with managed renewable generation and battery storage assets, helping businesses to manage price risks, lock in long term price certainty, and reduce carbon emissions at the same time”.
GridBeyond secured over £5 million in investments in early October to continue providing smart energy solutions on a growing international scale.