Our Edge
Optimisation for increased savings
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.
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.
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.
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.
We help power your business in a way that keeps it profitable, competitive and contributes to a carbon neutral world.
Energy market insights and news
Hartree Partners Announces Ten-Year Carbon Credit Agreement with Kansai Electric Power Group
Singapore, 14 August 2024: Hartree Partners (“Hartree”) today announced that it has signed a ten-year…
Singapore, 14 August 2024: Hartree Partners (“Hartree”) today announced that it has signed a ten-year agreement with Kansai Electric Power Group (“Kansai Electric”), enabling Kansai Electric access to high-integrity carbon credits in Australia. The agreement expands the companies’ partnership, first announced 14 December 2023, and will support Kansai Electric’s Zero Carbon Vision.
Ahmed S Al-Awa, Managing Director of Hartree Partners Singapore Pte. Limited, said, “Hartree is deeply committed to the Japanese carbon market, and we are excited about the opportunity to expand our presence, drive sustainable solutions and support our partners to help achieve Japan’s national net zero targets.”
About Hartree Partners
Hartree Partners, LP is a leading global merchant commodities firm specializing in energy and associated industries. Established more than 25 years ago and jointly owned by senior management and funds managed by Oaktree Capital Management, L.P., Hartree has a unique 25+ year track record in proprietary trading and investing in energy markets across the globe. Hartree’s core strengths are understanding the complexities of the global commodity market and risk pricing and converting that knowledge into consistently successful trading strategies. Today, the firm has over 700 employees and a further approximately 1,000 associates in its operating companies and a strong balance sheet available for trading and principal investment purposes. For more information, please visit www.hartreepartners.com
Kansai Electric Power Group and Hartree Partners sign first term contract in Japan coupling LNG supply with carbon investments.
Japan, 14th December 2023: Japanese power company, Kansai Electric Power Group (Kansai Group), has signed…
Japan, 14th December 2023: Japanese power company, Kansai Electric Power Group (Kansai Group), has signed a binding term agreement with Hartree Partners for the supply of LNG alongside investment in a nature-based carbon project in Australia, the first deal of its kind in Japan. The deal represents Kansai Group’s long-term commitments to decarbonisation and the provision of low-carbon energy for its customers.
This LNG supply agreement enables KE Fuel Trading Singapore Pte. Ltd (KEFTS) to grow its LNG portfolio which will support Kansai Group’s LNG supply-demand situation and customers around the globe.
Also, through its expertise in global carbon markets and its project portfolio in Australia, specifically focused on nature restoration, Vertree Partners, Hartree’s global carbon market arm, will support The Kansai Electric Power Co., Inc. (Kansai Electric) to access future supply of high-integrity carbon credits to support its Zero Carbon Vision.
Both companies will explore potential opportunities to support Japan’s national net zero targets in areas such as LNG, renewable energy, environmental products and carbon capture and storage (CCS).
Hartree Partners is a well-established global energy and commodities firm with decades of experience in the physical and financial energy and commodities market. Its wholly-owned subsidiary, Vertree Partners, is focused on decarbonisation and environmental markets.
“Carbon credits have an important role to play in realising a zero-carbon society,” said Hideaki Ikai, Executive Officer, Operation and Trading Division in Kansai Electric. “Kansai, as a leading company of zero-carbon energy, is proactively studying ways to create a carbon neutral society, and I believe that this collaboration with Hartree Partners will accelerate our activities to achieve the goal of carbon net zero by 2050.”
Shinichi Kudo, Chief Executive Officer, KEFTS, added “The combination of LNG and carbon credits will give us a promising option to attain our mission to provide our customers with stable energy supply and decarbonization solutions.”
Ahmed S Al-Awa, Managing Director of Hartree Partners Singapore Pte. Limited and a Partner of Hartree Partners, said “this forward-looking move by Kansai Electric Power Group sends an important signal that carbon markets are likely to become a key component of the natural gas/LNG value chain as the sector moves to decarbonise.”
Ariel Perez, Managing Partner of Vertree Partners added “We are committed to supporting Kansai Electric Power Group to make credible investment in the carbon market. The market is evolving rapidly, and companies may be increasingly exposed. Investments such as these support future preparedness whilst also directing finance to nature-based solutions, without which we face continued environmental degradation and eco-system loss and increase the risk of missing our global climate goals.”
About The Kansai Electric Power Co., Inc.
Kansai Electric Power Group, as a Japan’s leading electric power company, is aiming for carbon neutrality throughout the entirety of its business activities by 2050 to limit global warming, while increasing energy independence to secure energy supply for its customers, Kansai Group can be found at https://www.kepco.co.jp/english/
About KE Fuel Trading Singapore Pte. Ltd
KEFTS, a 100% subsidiary of Kansai Electric, was established as an LNG trading arm of Kansai Group in April 2017. KEFTS has been supporting Kasai Electric’s LNG supply-demand balance and providing LNG portfolio for customers around the globe, and now enhances its activity to support Kansai Group’s carbon neutrality at its base in Singapore.
About Hartree Partners
Hartree Partners, LP is a leading global energy and commodities firm with an international reputation for integrity developed over decades. Our expertise enables us to capitalise on the transition from fossil fuels to a low carbon economy. Hartree’s global breadth and reach provide a competitive presence in a comprehensive range of commodity markets, enriched by the firm’s employees who add deep insight, expertise and innovative thinking. More information concerning Hartree can be found at www.hartreepartners.com
About Vertree Partners
Vertree Partners enables leading companies and institutions to invest in both nature and innovative climate technologies to assist them in reaching their decarbonisation goals. Founded in 2020, Vertree is focused on driving positive environmental and social impact, and providing its customers access to existing and future supply of high-integrity environmental commodities. It does this through directly financing quality emissions reductions and removals projects; partnering with renowned project developers; investing in innovative organisations and technology-based solutions; and providing its expertise in voluntary and compliance markets, trading, market analytics and risk management. Vertree is wholly owned by Hartree Partners.