Risk Management on Fuel Price Fluctuation in Long-Term Energy Service based on Co-Generation

• BANNAI Masaaki

  Energy Solution Engineering Div., Hitachi, Ltd.

• KASHIWAGI Takao

  Tokyo University of Agriculture & Technology

• AKISAWA Atsushi

  Tokyo University of Agriculture & Technology

• Tomita Yasushi

  Hitachi Research Laboratory, Hitachi, Ltd.

• ISHIDA Yasushi

  Solution Total Management Div., Hitachi, Ltd.

• HISAJIMA Daisuke

  Energy Solution Engineering Div., Hitachi, Ltd.

• HIJIKATA Kaoru

  Finance Department 2, Hitachi, Ltd

Bibliographic Information

Other Title

• コージェネを主体としたエネルギーサービス事業における燃料価格変動の影響とそのリスクヘッジ
• コージェネ オ シュタイ ト シタ エネルギーサービス ジギョウ ニ オケル ネンリョウ カカク ヘンドウ ノ エイキョウ ト ソノ リスクヘッジ

Abstract

Energy Service Company (ESCO) is expanding as a means of energy savings in industrial field in Japan. ESCO Performance Contract periods are mostly 10 years. For these long-term periods, utility costs such as fuel and electric prices will vary depending on imported crude oil and liquefied natural gas. These prices will affect ESCO profit yearly. Especially, the fuel costs make up sixty percents of the project costs in the case of ESCO which introduces mainly co-generation system, therefore it is essential to reduce fuel prices fluctuation risk, to maintain the ESCO profit as stable. We examined a way of making use of derivatives to reduce fuel prices fluctuation risk on practical plants, and picked out guidelines for derivatives. Moreover, we have developed a simulation tool to analyze ESCO profit fluctuation easily, and applied to the practical ESCO project plants. As a result, most stable fixed rate of fuel consumption used by co-generation is between 5 to 50 percent.

Journal

• Transactions of the Society of Heating,Air-conditioning and Sanitary Engineers of Japan

  Transactions of the Society of Heating,Air-conditioning and Sanitary Engineers of Japan 30 (96), 63-73, 2005

  The Society of Heating, Air-Conditioning & Sanitary Engineers of Japan

Keywords

• Energy Service
• ESCO
• Risk
• Derivatives
• Co-generation

Details

• CRID: 1390001206546437120
• NII Article ID: 110007996527
• NII Book ID: AN00065706
• DOI: 10.18948/shase.30.96_63
• ISSN: 24240486
• ISSN: 0385275X
• NDL BIB ID: 7236512
• Web Site: https://ndlsearch.ndl.go.jp/books/R000000004-I7236512
• Text Lang: ja
• Data Source:
  • JaLC
  • NDL
  • CiNii Articles
• Abstract License Flag: Disallowed