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Product Information

Product

SAP Energy Portfolio Management

Release

6.04 SP01

SAP Enhancement Package

EHP 4 and above

Based On

SAP ERP 6.0

Documentation Published

February 2013

Use

In the changing liberalized energy market, there is a clear trend to structured and differentiated procurement strategies, which are no longer based on full-supply contracts with single upstream suppliers. Energy is instead procured from a broad range of products from different counterparties in a market, which is characterized by high price dynamics. The SAP Energy Portfolio Management (SAP EPM) solution supports procurement departments of energy utility companies or service providers for energy utility companies. It enables them to make the right decisions in this complex business by providing a structured data basis, well-defined process steps, specific algorithms, and transparent risk management processes.

Features

The solution comprises the following functions:

  • Flexible creation and structuring of portfolios for contracted sales, expected sales, procurement, and actual data

  • Calculating and automatic evening-up of open positions

  • Calculation of value at risk and market-to-market parameters

  • Limit definition and checking

  • Calculation of an hourly price forward curve (HPFC)

  • Deal management

  • Plan objects

  • Price request

  • Supplier invoice verification

  • Deal distribution

  • Deal extractor

  • Day ahead adjustments

  • Ex-post calculation of regulation energy

  • Provision of data to settlement area management (SAM)

  • Reporting

  • Interface to sales systems

  • XML-based imports and exports

  • CSV-based imports and exports

Process

The energy procurement process is based on a forecast of the future energy demand.

For existing end customers and contracts, the forecast is based on point-of-delivery-specific historical consumption data, which is stored in the Energy Data Management component (SAP IS-U-EDM), or it is imported as aggregated prognosis data from outside.

For contracts of new end customers or contract extensions, the corresponding data is imported by an interface to a sales system, for example SAP Customer Relationship Management (SAP CRM).

After the portfolio structure is set up, the Energy Portfolio Management process starts with the collection of prognosis data of the energy demand and then stores them in the corresponding profiles of one or several sales portfolios.

The prognosis data is either determined in EDM and is then aggregated to portfolio profiles (see Updating Portfolios), or is imported from outside (see Imports). Alternatively the prognosis data can also be the result of an accepted price request of a customer, booked as a demand deal to a sales portfolio.

By the procurement process, the open positions between the prognosis data and the already procured energy are covered by deals. These deals procure the needed energy. By running through various status and functionalities the deals can be exported to the counterparties; confirmations from these can be imported into the system (see Deal Confirmation) and thereafter released (or rejected) by the system. The standard core process ends with the invoice verification of the deals.

Activities

You access the functions for SAP Energy Portfolio Management and for Formula-Based Price Calculation using area menu /UTPFM/EPM.