"With fuel oil representing up to 80% of our cost of doing business, we needed a state-of-the-art, transparent trading and risk management system to help reduce fuel costs, lock in margins and keep track of our physical and financial positions.”

PowerSeraya

“Allegro has again demonstrated its ability to rapidly respond to market needs with their emissions management solution.  The enhanced Emissions 8.1 component is a fully featured offering that includes an accelerated trade entry process achieved by requiring traders to enter only the most basic trade information and allowing the back office personnel to provide the remaining information during reconciliation.  Another significant addition is the ability to simply download registry data from any global registry to perform a comparative analysis and accurately generate reports that show compliance to regulatory agencies.”

Dr. Gary M. Vasey
GM, Europe
CommodityPoint, Inc.

Emissions & Renewables Credit Management & Reporting Solution PDF Print E-mail

emissions

Comprehensive Trading and Risk Management of Both Emissions and Energy Commodities

Increasing regulatory requirements are driving the need for improved renewable and emissions management solutions. Regional and national directives are placing tremendous pressure on energy market participants to manage emission allowances, carbon offsets, renewable energy certificates (RECs), and other environmental commodities for environmental compliance. Energy companies, manufacturers, refiners, and energy consumers need systems to manage their environmental portfolios. Today many firms still manage carbon emission allowances and offsets separately from the rest of their portfolio of power, natural gas, crude oil, and coal -- often manually with spreadsheets. As worldwide emissions trading matures, more and more firms will be looking to handle emissions alongside their other commodities in one integrated system. Allegro offers a solution that provides a comprehensive view of risk, credit, positions, trades, and contracts across all commodities.

Emissions 8.1

Allegro’s Emissions 8.1 component meets the challenges that arise from these mandated requirements with highly efficient trade activity functionality aimed at renewable credits and emissions certificates. Emissions 8.1 provides comparative reporting with the ability to access, manage and match requirements necessary for compliance. This component has the flexibility to capture, trade and track emissions certificates with all required attributes to manage the following functions:

  • Trade capture of bilaterals, allocations, expire, options, surrender certificates
  • Forecasted and actual emissions usage
  • Physical inventory
  • Position management and reporting
  • Valuation and Mark to Market
  • Compliance reporting
Key Feature Key Benefit

Trade Capture - Manage complex deals with required attributes to track risk – for emissions and renewable credits

 

Efficient and comprehensive tracking process to capture trades with unique attributes such as program, phase, vintage year, registry, registration confirm and expiration

Inventory Management – Manages and tracks corporate portfolio to best optimized asset

Complete process to track physical open certificate allocations, surrender, bilateral trades, options and expire certificates to create a complete position

Position Modeling and Reporting

Captures planned and forecasted physical positions, short emissions usage, long renewable generation position or short REC demand requirements (LSE’s requirements)

Instantaneous visibility of positions to best manage company profitability

Valuation and Mark to Market

Sets valuation process for emissions and/or renewable independent of other commodities

Creates forward curves and prices for renewable and emissions

Runs valuations in real-time

Reporting and Reconciliation

Easily download registry data into super-set tables by date, block number or other criteria

View instantaneous reports to generate a comparative analysis with registries by creating position and computed delta for dispute resolution support, and filed reports.

Reconcile to national or regional holding entity