- What is risk analysis? How does it work?
- How can companies in the energy industry use risk analysis?
- Is there a minimum project budget that you would consider to begin to benefit from risk analysis?
- What are some of the benefits of analyzing risk early on?
- At what stage of a project do you recommend starting the risk analysis, who should be involved and where does the data come from?
- What are the costs involved with risk analysis?
- Can you share some examples to illustrate how risk analysis can be an important tool for analyzing the success of clean energy projects?
The article highlights FutureMetrics' use of @RISK to hedge wood prices in the production of burning wood pellets. Based in Bethel, Maine, FutureMetrics is recognized as one of the leading domestic experts in the economics of the production and use of renewable bioenergy.
Today, the global consumption of wood pellets is approximately 15 million tons per year. It is expected to exceed 45 million tons by 2020. The largest market for wood pellets exists in Europe, where regulations encourage the use of carbon neutral fuels, like biomass. With such a dramatic jump in global wood pellet consumption predicted in the future, FutureMetrics and INRS, via their partnership in FutureEnergy Partners developed a wood price hedging product that uses @RISK to measure its effectiveness.
“I have been using @RISK since the early 1990’s, so I have a perspective on the commitment to the users that the Palisade team has,” said Dr. William Strauss, president and founder of FutureMetrics. “Every new version has new and very useful features that often are based on feedback from users. Palisade’s @RISK software has the richest feature set and has the most relevant tools for analyzing models that contain uncertainty.”