ENERGY MIX FOR RISK HEDGING (SSE UK)

Opportunities exist for profit maximisation during clean dark spread or clean spark spread (source: Quarterly report on European Electricity Market) in the UK. SSE is also well positioned to capture this opportunity.

produce-electricity-using-gas

Fig. 1 Risk hedging and profit maximisation – Energy mix (Source: SSE annual reports)

The gas fired power units offer a real flexibility for the profit maximisation (fig. 1) in the case of clean spark spread (source: Quarterly report on European Electricity Market). Energy (in MWh) could be produced during peak price periods using gas fired units for value creation. On the other hand, gas could be directly sold to end customers, if above nominal profit making opportunity exists.

References:

SSE plc, 2014, Annual report 2014. [Online] Available at:
http://sse.com/media/241200/2014AnnualReport.pdf [Accessed on 05 May 2015]

Quarterly report on European Electricity Market (Volume 7, issue 3; third quarter of 2014)

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