Our Edge

Optimisation for increased savings

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Our Edge

Optimisation for increased savings

Optimisation – what does it mean?

For any given half-hour, the input costs and charges that make up the price of electricity can vary. Equally, as gas costs vary, the optimum on-site generation level changes each half-hour. The team at Hartree Solutions can predict with a high degree of accuracy what it believes market prices will be several half hours ahead on a minute by minute basis and alter the operation of installed power generation plant accordingly.

  • If we predict market prices are high, we will operate the plant at maximum output and supply both on-site demand and export any excess power to the market, gaining revenue to your benefit.
  • If the prediction is of low or even negative market prices, on-site generation would be more costly than importing from the National Grid and we would turn off the generation plant and import power from the Grid as this would create material savings in power costs.
  • At other times when we predict market prices are equal to or slightly higher than generation cost, we would operate the plant in “load following” mode, saving you money but not generating an excess for exporting.
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How we optimise

Data Analysis

As a global energy trading company, data is the engine that drives our business forward. Our data analysts and traders collate, analyse, and interrogate literally millions of data points per minute, all day, every day. We use this data to build complex models of the energy world, across the UK, Europe, and further overseas.

Our fundamental and Artificial Intelligence (A.I.) based models are used by the trading team, coupled with their decades of experience to make sound trading decisions. The data collected feeds into our own A.I. system which despatches instructions remotely to our generation assets, setting their operating parameters to maximise revenue streams based on real-time market conditions and expected changes in market prices.

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We can also use these same A.I. predictions for marginal carbon grid intensity. This allows us to overlay this metric to ensure we operate the generation assets to save money and reduce carbon emissions simultaneously.

Savings for you - not your energy supplier

Optimising any generation asset based on real-time market prices does not necessarily benefit you, it benefits your energy supplier as they will charge you the flat tariff in your contract irrespective of system prices. Hartree Partners Supply, our fully licensed supply business, can become your supplier, meaning that all the real-time market benefits, including spot prices, are passed on to you. In fact, we don’t stop there. We forecast these future energy savings and guarantee these to you so you can get on with what you do best while we do what we do best.

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Optimisation – risk free

As part of our service to you, we carry out an in-depth analysis of your power and gas data, this gives us a clear picture of which asset or combination of assets will offer you the highest savings and largest carbon reduction.

We run these solutions through a rigorous modelling system, and this shows the performance of the asset and how we believe it will perform in the real world. We then “bake in“ the optimised savings for this asset and pass them on to you as a fixed price per kWh. It’s the same price for all your power, whether it is imported from the grid or generated on-site, Hartree is responsible for the optimisation and ensuring the asset performs as we expect, for you, the process is risk-free.

Hartree Solutions will invest in the asset, its optimisation and maintenance and pass the savings on to you at a guaranteed fixed low price.

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We help power your business in a way that keeps it profitable, competitive and contributes to a carbon neutral world.

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Energy market insights and news

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Additional grid capacity arrives at Peterlee

As the energy revolution advances, the UK grid continues to transition towards a more sustainable…

As the energy revolution advances, the UK grid continues to transition towards a more sustainable future. Until the UK is at the point where it can run 100% of the time on 100% renewable energy, it needs some additional support as it moves further and further away from large scale coal-fired plants. During this time of transition, additional resources are needed to support the National Grid to ensure businesses can continue to operate and domestic consumers are not impacted. The need for grid flexibility has increased in importance with so many people working from home during the Covid-19 pandemic.

This week our Peterlee site took delivery of two 2MW units that will be available to support the National Grid. The onsite generation units will provide balancing services and flexibility as the UK grid continues to try and balance the growing renewable assets available. By setting up another site, we ensure we are playing our part in keeping a consistent power supply to the UK. Once fully commissioned this site will be able to provide an additional 4MW of power to the grid when it needs it most.

Unit arrives and is offloaded at Peterlee.
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Hartree Partners and SYSTEMIQ launch Vertree

Hartree Partners and SYSTEMIQ launch Vertree to accelerate investment in global carbon markets New business…

Hartree Partners and SYSTEMIQ launch Vertree to accelerate investment in global carbon markets

  • New business founded to drive positive impact as $30bn Voluntary Carbon Market matures

  • Joint venture combines world-leading sustainability expertise of SYSTEMIQ with trading and risk management experience of Hartree Partners

  • Vertree will focus on high-integrity nature-based solutions; investing in its own projects; and market-leading insights and due diligence

 

Wednesday 26 May 2021, London.

Sustainability experts SYSTEMIQ and global energy and commodities firm Hartree Partners today announce the launch of Vertree Partners Limited, trading as Vertree, a joint venture that enables organisations to accelerate and deliver ambitious climate commitments through nature-based solutions.

The launch follows news that corporate carbon-neutral pledges led to a record Voluntary Carbon Market (VCM) transaction volume in 2020, growing 6% year-on-year. According to the Taskforce for Scaling Voluntary Carbon Markets, the global VCM could reach between US $30bn and US $50bn in size by 20301.

Nature-based solutions are a crucial part of Voluntary Carbon Markets, harnessing the power of the planet’s natural resources to address the dual climate and biodiversity crises. Done well, nature-based solutions protect and restore vital habitats to increase biodiversity at the same time as reducing atmospheric greenhouse gas emissions by avoiding or removing them.

Land-use change ranks second only to the burning of fossil fuels as the biggest source of emissions that contribute to climate change. But investing in tropical rainforests to sequester and store carbon can have a significant beneficial climate impact; according to the Intergovernmental Panel on Climate Change, ‘‘reducing deforestation and forest degradation rates represents one of the most effective and robust options for climate change mitigation”2.

 

Ariel Perez, Vertree’s Managing Director, said: “It is no longer sufficient to slow the rate of emissions the world produces; we also need to begin removing CO2 that already exists. Although the priority should be to abate emissions wherever possible, the range of technological solutions available today varies greatly, and achieving net zero will require some degree of carbon reductions and removals. Nature-based solutions are among the most scalable and effective ways to reduce emissions, protect and restore biodiversity, and to support the United Nations’ Sustainable Development Goals”.

However, the current supply of high-integrity nature-based solutions is insufficient to meet the commitments already made by a number of large organisations. McKinsey estimates3 that annual global demand for carbon offsets could reach between 1.5 to 2.0 gigatons of carbon dioxide (GtCO2) by 2030 and between 7 to 13 GtCO2 by 2050. According to their research, “the development of projects would have to ramp up at an unprecedented rate” to meet that demand, with issues such as a lack of financing leading to constrained supply.

“We are committed to catalysing significantly more long-term investment in nature-based solutions”, Perez continues, “but this must be done in a way that genuinely addresses global emissions while improving the livelihoods of local communities. Vertree’s expertise in carbon markets, along with over a decade of on-the-ground forest and landscape project experience that is embedded in the joint venture, enables us to adopt this long-term perspective.”

Vertree will further address concerns around the integrity of carbon offsets with market-leading insights and due diligence of both the projects it supports and the organisations it works with. All Vertree projects are verified and audited by third parties, including the Verified Carbon Standard; Architecture for REDD+ Transactions; Gold Standard; and Climate, Community, and Biodiversity Standard. Vertree will also use the Core Carbon Principles set out by the Taskforce on Scaling Voluntary Carbon Markets, which assess impacts on the climate, biodiversity, and local communities.

Taraneh Azad, SYSTEMIQ’s Partner and COO, said: “We created Vertree to provide nature-based solutions that the world can trust, with the highest possible standards of environmental and social integrity. Our ambition is to enable Vertree clients to trace funding all the way back to the forests and local communities that they’re investing in, ensuring Vertree projects are both transparent and impactful.”

Ahead of the UK’s Presidency of COP26 in November, the scaling and operation of Voluntary Carbon Markets has become a focus for policy makers and investors. The Taskforce on Scaling Voluntary Carbon Markets, led by Mark Carney, released its final report in January 2021, and the Voluntary Carbon Markets Integrity Initiative began consulting on guidance in March.

 

Notes to Editors:

About Vertree

  • Vertree Partners Limited, trading as Vertree, is a joint venture that combines the world-leading sustainability expertise of SYSTEMIQ and the carbon markets and environmental products experience of Hartree Partners.
  • Vertree will drive positive impact in the maturing voluntary carbon market by focusing on high integrity nature-based solutions.
  • By investing in its own projects and using market-leading insights and due diligence, Vertree will enable organisations to accelerate and deliver ambitious and credible climate commitments through nature-based solutions that also have positive impacts on communities and biodiversity.

Website: https://vertree.earth/
Twitter: @VertreeP
LinkedIn: https://www.linkedin.com/company/69693048
Instagram: VertreePartners

About Hartree Partners LP

  • Hartree Partners is a global merchant commodities firm specialising in energy and its associated industries. It focuses on identifying value in the production, refinement, transportation and consumption of tradable commodities and anticipating opportunities in the supply chain where they may be under or over-valued.
  • Founded originally in 1997, Hartree has a global reach spanning 12 offices and over 100 traders. The company’s rigorous research, analytical approach, and entrepreneurial culture have contributed to its strong track record and growth over that time.
  • Hartree Partners is owned by the company’s managing partners, senior staff, and Oaktree Capital, an alternative investment company with over $113bln of assets under management and a major investor in low carbon and renewable technologies.

https://www.hartreepartners.com/

About SYSTEMIQ

SYSTEMIQ is a B Corp created in 2016 to drive achievement of the UN Sustainable Development Goals and the Paris Agreement by transforming markets and business models across three areas: land use, materials and energy. Working with partners across sectors, SYSTEMIQ aims to unlock economic opportunities that benefit business, society and the environment. To learn more, visit www.systemiq.earth

Twitter: @SYSTEMIQ_Ltd

 

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