Energeya, an Italian firm with a strong presence in both the North-American and European markets explores its fully-integrated, modular, end-to-end software solution for energy procurement, selling and management

Energy and utility companies are facing critical challenges. Rising environmental awareness and increasingly strict supply constraints are forcing them to optimise business processes and invest in efficiency-improving strategies and solutions, focusing on asset and resource optimisation. Moreover, the energy and utilities industry is dealing with an ever-changing, volatile environment where competitiveness, new technologies, regulation and customer service demands grow at a constant rate: in order to defend their leadership and prevent a decline in market share, major energy and utility companies must lower operational costs, optimise asset use, and meet market expectations.

Industrial and commercial energy consumers, on their part, need cost control and profitability optimisation. Rising fuel costs, strict regulations, and increased market volatility are among the most critical conditions which affect energy intensive companies’ profitability and business sustainability. This is the reason why they need to achieve optimisation in energy procurement and management  to keep energy costs under control and maximising  profitability.

To both utilities and big energy consumers, Energeya, an Italian firm with a strong presence in both the North-American and European markets provides a fully-integrated, modular, end-to-end robust software solution for energy procurement, selling  and  management. The company’s software solution is the XDM Suite, based on a modular architecture that can be focused on the needs of different kinds of customers and individual companies. In particular, for utilities and energy providers, the Suite fully implements contract and risk management functionalities as well as forecasting, analytics and planning models, asset optimisation, settlement processes and regulatory reporting functions.

The company’s clients include several of the largest Energy and Utility companies in Europe, that use XDM Suite to support their core processes.

A couple of examples can provide a clearer idea of the depth and scope of the solutions that Energeya can provide.

Enel: Integrated management of both gas and power trading

Enel is Italy’s largest power company, among Europe’s main listed utilities, active as an integrated player in the power and gas sectors. The company today operates in 40 countries worldwide, has over 97,000 MW net installed capacity and sells power and gas to 61m customers. In 2007, Enel successfully completed the acquisition of Endesa S.A. of Spain. Enel’s corporate structure is based on a holding-operating companies architecture, specialised by type of activity (generation, trading, distribution…) and geography.

Energeya’s XDM Suite is used by different Enel operating companies. One of these is Enel Trade, whose gas and power departments use the Suite. In 2010, the Power Department was looking for a solution to automate its energy management value chain and its risk and portfolio strategy. The specification included support for:

•          Commercial wholesale operations (OTC, EFET, brokers) with automated confirmations management

•          Vertical processes in the Italian Power Exchange platforms (commercial transactions and physical scheduling on PCE, IPEX bidding)

•          Operations on other market platforms like PDE and derivatives MTE and IDEX

•          Operations on foreign power markets (EEX, PowerNext, NordPool, OMEL,…)

•          Trade evaluation and settlement

•          Portfolio optimisation and management, and support to risk management

Some time later, it arose in the Gas Department of ENEL Trade the need to automate the business processes of the three core divisions of the company: sales, back-office and logistics. After extensive analysis, including complete revision and redesign of business processes and gathering of functional requirements, Energeya was asked to provide a comprehensive and integrated solution that could support the three divisions. The company implemented a solution based on the XDM Suite, to support the core processes of the Gas Area of ENEL Trade, including:

•          Complex pricing and scenario analysis

•          Contract lifeline management

•          Logistics management (network management, physical balancing of the network perimeters, nominations management and communication to TSOs)

•          Contract settlement

•          Costs and revenues allocation management

In both cases, Energeya provided a targeted solution based on different and integrated modules of the XDM Suite,  automating in ENEL the whole Energy Management value chain focusing on forecasting, trading, supply and optimisation management, planning, scheduling and portfolio management for gas power. The solutions communicate and integrate with Enel companies (e.g. Enel Produzione) software for easy and effective data sharing, access and management.

Application architecture for gas

GasTerra is a Groningen, the Netherlands, based  leading international player active in the trading of natural gas and with a significant share in Dutch gas supplies.          The company has a strong international presence, more than half its natural gas being sold outside the Netherlands.

In July 2011 GasTerra selected the Energeya XDM Suite for its business domains: Planning, Pricing, Risk, Optimisation, Forecasting, Gas Dispatching & Balancing. The company was impressed and satisfied by the performance of the software, and less than a year after (March 2012) Energeya signed a partnership contract with GasTerra for the company TerraNova program. The objective was to develop a new software platform to allow GasTerra to move from the current fragmented systems to a more integrated and consolidated landscape. In the new platform, three key strategic systems among which the XDM Suite interact to support all business processes of the company.

Ready for EMIR, EMIT and MiFID compliance

From 2011, the EU adopted  a series of new financial legislative packages which will introduce stringent rules on the trading of OTC derivatives and related instruments across a number of asset classes, including energy. A subset of this legislation (REMIT), is specific to wholesale energy trading, and will impact all energy market participants in stages through most of 2014. As a result of the regulations, companies need additional reporting and risk management systems to support data collection and integration, daily contract valuation, and maintenance of the audit trail. To meet these requirements, Energeya provides a new module for the XDM Suite, XDM Compliance. This module allows management  of both local and international regulations as a business process, combined with a full supporting environment of IT tools. XDM Compliance can be used as a stand-alone solution, but its full potential is best realised when integrated with the other modules of the XDM Suite. Energeya is working with its clients to add this powerful compliance facility to their software set-up.