Recently, I had the pleasure of conversing with a senior consultant at KYOS, a company that offers a range of analytical software tools and services. When examining the breadth of software solutions provided by the company, one can find everything from predictive analytics (such as price forecasting) to optimization, hedging, VaR, valuation models and even transaction management software. How was all of that developed? I was told that historically the company originated as a risk and simulation solution for large energy firms, which would utilize it alongside their ETRM systems. This was a common scenario where large companies sought more sophisticated and flexible risk applications compared to those offered by their ETRM systems. They typically used VaR solutions, market simulations, and forward curve building. However, with the advancement of renewable energy and energy transition technologies, KYOS identified new opportunities. On the one hand, there are new market participants seeking solutions, such as IPPs, banks investing in renewables, and corporations with prosumer capabilities. On the other hand, there are new asset types where analytic software can offer support, such as batteries, PPAs, and green hydrogen production. This presents a significant opportunity for KYOS, as my contact person describes it. … continue reading