Essentia Upgrades Trading & Risk Management Platform for One of the Largest Renewable Power Generators

The Project

Renewable energy is an important solution to curbing global emissions and increasing energy security. Natural resources like sunlight, wind, water – renewable energy sources – offer cleaner alternatives to traditional fossil fuels and uniquely profitable business opportunities. Profitable operation in this business requires overcoming an array of challenges such as the inherent intermittency of these sources, the common timing mismatch between peak generation and peak demand (the “duck curve”) and the resulting price volatility which occurs. Accurate, real-time visibility into the risk exposures is vital.  

Essentia’s client is one of the largest renewable power generators in North America. Essentia assisted the client with the original selection and deployment of the commercial systems needed to trade and manage risks. For a variety of reasons common to commodity-trading organizations, 6 years later the client found themselves 10 versions behind the current release of its Allegro commodity trading & risk management (CTRM) system. Client leadership was hopeful that with an Allegro software upgrade from version 8 to the most recent version, the advanced software features would improve visibility and align system capabilities & workflows to the organizations’ needs in renewable power marketing & trading. 

Essentia Provided

In planning the transition from the legacy, Allegro 8 version of the trading system to the latest platform release – Allegro “Horizon” – a number of process and system interdependencies required careful consideration. These included:  

  • Integration of price data feeds from the client’s multiple 3rd party data providers 
  • Integration with the 3rd party system used to create and manage forward curves 
  • Integration with the 3rd party system used for managing financial transmission rights (FTR) 
  • Integration with SCADA systems to capture volumetric inputs 
  • Integration with the multiple Independent System Operator (ISO) markets via the 3rd party Bid-to-Bill system 

Moreover, preservation of the integrity of critical data sets such as load shapes and proprietary forecast models was likewise of paramount importance.  

Ensuring a successful transition, minimum disruption to ongoing operations and daily visibility into risks and exposure management were critical objectives for Essentia. Comprehensive, thoughtful, deliberate, and methodical planning was required.  

Renowned for having the industry’s “All-Star” team of commodity trading system experts and in this case many of  the original visionaries behind the inception of the client’s commodity trading and risk management (CTRM) system Essentia put its experts to work.  

Key accomplishments include: 

  • Upgraded from Allegro 8 to the latest Horizon release
  • Zero disruptions to business and seamless operational continuity 
  • A comprehensive testing regimine that ensure accuracy of results before cutover 
  • Hypercare support during the period immediately after cutover which ensured staff had the knowledge and skills necessary to ensure successful organizational change

Client Benefits

Deployment of the latest software version got the client compliant with its vendor, enhanced daily trading and risk operations via new software capabilities, reduced the amount of previously manual and repetitive tasks, and optimized the decision support provided to the commercial and operational leaders necessary to address the challenges inherent to profiting in the renewable power industry. Combined, the upgrade positioned the client optimally to maximize value from its asset for its investors. 

Renewable Energy

Natural Gas 

Allegro Horizon CTRM 
Adapt 2 
Yes Energy 
Oracle ERP 

Essentia Solution Offerings
Strategic Advisory & Planning
CTRM Upgrade

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