Problem
- Comply with SPEDE regulations (carbon credit cover);
- Depending on several volatile and dynamic variables (estimated price of carbon credit, exchange rates, estimated GAS tonnage, capital cost) define the best hedging strategies;
- Assess the financial impact (cost and need for cash) of the strategies;
Suggested solutions
- Import volatile and dynamic variables;
- Model a financial analysis;
- Develop a strategy generator engine;
- Develop a simulation engine that assesses each of the strategies;
Results
- Senior management has relevant information to assess each of the hedging strategies;
- Depending on the volatile and dynamic variables changes (eg exchange rates), senior management holds information relevant to modify and optimize the strategy.
