TS-Energy is based on a stochastic and dynamic programming technique consisting of a two-step approach made up of backward and forward integration.
A so-called action grid is created, containing the best strategy for any time in the future, for any market condition and for all internal statuses of the asset under consideration.
The defined strategy is then applied to scenarios. These scenarios are created via Monte Carlo simulations or provided by our customers. As a result, the fair value and risk indicators are determined for each item and for the entire portfolio.
If the defined strategy is then applied to the actual development of uncertain determinants (e.g. price developments), the optimum schedule for operating the power plant is determined.