“With time, energy markets have evolved and participants are more aware, like never before, of the risks they face. Although initially energy market participants borrowed solutions directly from financial markets, with increased sophistication of the industry they have realized that these solutions don’t address either the dynamics of energy commodity prices, or the complexities of energy portfolios. Our solutions are built to analyze the risk of physical assets and financial contracts at a portfolio level for a complete view of our client’s market risk,” comments Dr Chris Strickland, Co-founder of Lacima.
The company has worked with clients across varied industries around the world including National Grid and Puget Sound Energy in the U.S., Bruce Power in Canada, Scottish and Southern Energy in the UK and Energy Australia in Australia.“The market is evolving, margins are getting squeezed and people are no longer looking at solutions that incorporate assets and contracts in a simplistic way that do not reflect their complex characteristics. The biggest challenge going forward is to have a better view of a portfolio as a whole and thereby optimize the efficient and profit maximizing use of assets, structure hedges, and reduce portfolio risks. Since the answer to all of these elements is better analytics, we are seeing an increasing demand for our solutions,” states Strickland.