Hitachi Energy Trading Optimizer

Markus Hartwig () and Olaf Heil ()
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Markus Hartwig: Hitachi Europe GmbH
Olaf Heil: Hitachi Europe GmbH

A chapter in Sustainability in a Digital World, 2017, pp 173-179 from Springer

Abstract: Abstract The increase of renewable energy and decentralized power production introduced new flexibility of energy supply while generating a significant increase in power price volatility in the market place. The product “Hitachi Energy Trading Optimizer (HETO)” as a Cloud based IT solution using artificial intelligence and machine learning algorithms, permits utilities and large industrial clients to optimize their profit & loss (P&L) through an optimization of their respective sourcing and marketing strategies with regard to electricity and its related commodities on today’s commodity markets. At the core of the solution is an IoT Platform that uses machine learning concepts to continuously enhance the marketing—and sourcing activities with respect to the different commodity markets. The first version of “HETO 1.0” optimizes a short term portfolio comprising both the supply and the demand side. Up till now the tradable markets include calendar day trading and any other product that has a shorter delivery horizon i.e. auctions and continuous trading. In addition, most of the different reserve power markets are being considered. By steering the assets according to market conditions, cost reduction, profit increase and stabilization of power grids can be achieved. The product targets in particular the 860 local and regional utilities (Stadtwerke) and about 180 large industrial clients together with other IPP (Independent Power Producers) and IPM (Independent Power marketers) that have a significant need for energy or have own power generation capacity themselves. These customer segments represent generation capacities of 32,800 MW conventional and 85,000 MW renewable power. The product is designed in such a way that it can be used in all liberalized energy markets, as it can be tailored to the respective market design paramount in any particular country. This platform also serves as a nucleus to offer other products and services in the environment of smart cities/smart infrastructure.

Keywords: Power Market; Electricity Price; Market Design; Renewable Power; Power Price (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:spr:csrchp:978-3-319-54603-2_14

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DOI: 10.1007/978-3-319-54603-2_14

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