Risk Management For Bidding Strategy Of Wind - amazonia.fiocruz.br

Regulated electric and gas utilities have seen significant changes as the traditional one-way, franchise monopoly, service model evolves into a more interactive relationship because of smart grids, microgrids, third-party participation in supply markets, regulatory pressures to integrate renewables and demand-side initiatives.

Optimizing Capital Expenditures

A shift is gaining https://amazonia.fiocruz.br/scdp/blog/purpose-of-case-study-in-psychology/communication-and-crisis.php quickly largely because of state and federal regulatory pressures. Traditional approaches to assessing system and individual asset operating performance and standards, developing rates and regulatory strategies, and responding to federal, state and independent system operator mandates will be increasingly ineffective. Utilities will need Mansgement strategies and tools that enable them to:.

Utilities can expect to see more rigorous regulatory prudency reviews, and they will need new planning tools that demonstrate all options have been considered and an optimized capital deployment plan is followed. The result is a backlog of capital projects Risk Management For Bidding Strategy Of Wind compounds the ongoing investment optimization and asset management challenges. In addition, some utilities have not historically viewed capital spending on a fleet basis, which has led to projects that do not deliver the expected rate of return. Key performance indicators, such as expected forced outage rate EFOR for assets, might not be aligned with overall corporate goals and objectives. Business processes typically are silo-based and nonstandard across a generation fleet and transmission and distribution systems, which creates inefficiencies and contributes to higher operations and maintenance costs.

Another contributor to higher costs is the hasty adoption of technology solutions that tend to be point solutions, rather than enterprise business solutions. This can lead to an inability to share data and information with other users, resulting in process inefficiencies and duplication of efforts.

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Utility executives are facing competing objectives, higher costs, a massive amount of customer data and rising expectations for Biddiing and reliability. Many view operational risk management as the key. Hawaiian Electric Co. Recent severe weather had caused serious outages. To support the corporate goal of operational excellence and high customer satisfaction, HECO wanted to ensure its transmission and distribution asset management and proactive replacement program would maximize the value of asset investments. HECO enlisted DNV KEMA to assess its asset management practices and equipment data, including current roles, processes, data and information tSrategy systems that support asset management.

Using its operational risk model and tools, DNV KEMA provided recommendations for investment prioritization, a streamlined planning and Risk Management For Bidding Strategy Of Wind process, an asset management model for proactive replacement, and appropriate performance measures for the program. HECO then had a solid analytical approach for determining capital investment requirements for each asset category. The audit also provided a portfolio analysis of the investment scenarios of Risk Management For Bidding Strategy Of Wind asset strategy to determine optimal investment projects for different Biddinf of funding. The portfolio optimization effort provided HECO with a deeper understanding of the returns and trade-offs associated with investment levels and asset categories e. Finally, the project assisted HECO in presenting and defending these investment requirements in rate case filings and proceedings.

Under increasing pressure from regulatory agencies, rating agencies and external stakeholders to improve operational performance, progressive utilities are taking a holistic approach. Operational risk management ORM see Figure 1 addresses operational risk considerations across the enterprise and includes all major business functions e. It provides a way to manage the risk of direct and indirect loss resulting from inadequate or failed internal processes, people and systems or from external events.

ORM considers the interaction among departments and provides transparency within an organization to identify and manage risks and assure that asset strategy and performance consistently support corporate goals. The result is portfolio optimization, which balances strategic, financial and operational risk at the enterprise level, as well as the business unit level, such as generation. A comprehensive ORM program:. It addresses current and future risks Strateyy provides strategies to manage tangible operational risks while planning for management of the risks of emerging technologies in a climate of tight working capital, regulatory imperatives and high visibility for any perceived reliability or response Schools t Today Just s Why Aren. A key aspect of ORM is asset management, the optimal allocation of resources in the pursuit of identified business objectives.

These objectives may include meeting threshold criteria related to reliability, performance, costs and prevailing legal mandates. Asset management is not a new practice; utilities always have managed assets. The change in how utilities manage their assets, however, is part of the shift.]