Agency for Natural Resources and Energy released a simple simulator that can calculate the income of the FIP system
The Agency for Natural Resources and Energy has released a tool to simulate the income of the FIP system. You can easily calculate income such as unit price and monthly amount. It is also expected that a business model will be born that covers the risks in the FIP system where income is linked to market prices.
Simulate FIP income
Can be calculated according to your company's conditions
The Agency for Natural Resources and Energy has released a simulation tool in preparation for the FIP system that will start in April 2022. In the "Simple simulation of FIP system" announced on February 9, you can perform a simple simulation of premium and market income based on reference prices.
The simulation can be downloaded as an Excel file from the website of the Agency for Natural Resources and Energy, and individual simulations can be performed by setting the power generation type, capacity, capacity factor, etc.
It should be noted that premiums and market revenues are calculated on a unit price, monthly basis and annual basis, but are simple simulations that do not reflect non-fossil values or balance sig costs.
(An example of a simple simulation. Source: Agency for Natural Resources and Energy "Simple simulation of FIP system" Excel file)
Balancing is also mandatory
Risk hedging in new business
Under the FIP system, the revenue from selling electricity is linked to the market price, which makes it difficult for power generation companies to make a forecast of income and expenditure. In addition, "balancing" is newly required. Balancing is to match the planned and actual values of power generation. It was exempted as a special case under the FIT system.
The Ministry of Economy, Trade and Industry says it is necessary to build a new business model that covers these risks of the FIP system. It suggests a business model in which the risk of price fluctuations in the FIP system is taken by retail electric power companies, aggregators, investors, etc., instead of power generation companies, as a new service.
(Source: Ministry of Economy, Trade and Industry 75th Procurement Price Calculation Committee)
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Agency for Natural Resources and Energy "Simple simulation of FIP system"
