case studies

Maximizing Value in the Face of Wind Energy Disruption

Maximizing Value in the Face of Wind Energy Disruption

Challenges

  • 01

    New Competition

  • 02

    Supply & Demand

  • 03

    Asset Management

ArrowHead's primary task was to evaluate the impact of the planned 9,500 MW of offshore wind on power prices in Long Island and the broader Northeast region.

The results spoke for themselves, and the company reaped the rewards of their analytics-driven decision-making. By relying on the model's price trends, they retained ownership of their plants and continued to receive good operating times, good revenue- and margin-recovery and thereby to retain their high value. Rather than selling them at fire sale prices, they kept them and realized the hundreds of millions of dollars in profit that the new owner (not they) would have reaped. It made hundreds of millions of dollars for their shareholders.

The results spoke for themselves, and the company reaped the rewards of their analytics-driven decision-making. By relying on the model's price trends, they retained ownership of their plants and continued to receive good operating times, good revenue- and margin-recovery and thereby to retain their high value. Rather than selling them at fire sale prices, they kept them and realized the hundreds of millions of dollars in profit that the new owner (not they) would have reaped. It made hundreds of millions of dollars for their shareholders.

Results and Benefits

02

Price Forecasting

ArrowHead also calculated the "capacity price,"—the fair market value of capacity—which provided the Power Company with a clear benchmark for their assets' worth. Remarkably, these capacity prices remained firm on Long Island despite the substantial injection of wind energy.

Results and Benefits

03

Decision Analysis

ArrowHead also calculated the "capacity price,"—the fair market value of capacity—which provided the Power Company with a clear benchmark for their assets' worth. Remarkably, these capacity prices remained firm on Long Island despite the substantial injection of wind energy.

Results and Benefits

04

Outcome

ArrowHead also calculated the "capacity price,"—the fair market value of capacity—which provided the Power Company with a clear benchmark for their assets' worth. Remarkably, these capacity prices remained firm on Long Island despite the substantial injection of wind energy.

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