Regional Energy Supplier

The Challenge

One of Europe’s largest energy companies, operating across power generation, trading, and energy infrastructure. Its trading and asset management functions require robust risk modelling across portfolios and physical assets.

 

The firm faced three critical challenges:

 

• Portfolio Risking: Legacy linear models required up to 8 hours per portfolio, limiting scalability
• Real-Time Trading Risk: Traders lacked live visibility into risk metrics for high-volume products
• Asset Valuation: Power station valuation required dynamic modelling based on market and operational conditions

These limitations constrained decision-making speed and risk visibility across the organisation.

Our Approach

RocketFin was engaged to implement Beacon as a unified risk and valuation platform. The objectives were to:

 

• Migrate portfolio risk calculations to a scalable VaR framework
• Enable real-time risk visibility for trading desks
• Develop dynamic valuation models for power station assets
• Integrate with live market data and legacy trade systems

 

Project Management Methodology
An Agile, multi-stream delivery approach was used, with parallel workstreams for portfolio risk, real-time trading risk, and asset valuation.

Technologies Used
• Beacon Platform
• Live market data feeds
• Legacy trade capture system integrations
• Python / Beacon APIs
• Custom dashboard frameworks

Solution Design
• Parallelised VaR model for portfolio risk calculations
• Real-time data ingestion and trader-facing risk dashboards
• Custom valuation models for coal power stations
• Configurable inputs for market dynamics and operational constraints

Risk Management
Key risks included performance scaling and integration with legacy systems. These were mitigated through parallelisation, incremental deployment, and performance testing.

Governance
• Regular stakeholder reviews across trading and risk teams
• Structured delivery milestones across multiple workstreams
• Close coordination with the firm’s IT and architecture teams

Service Lifecycle (ITIL-aligned)
• Development: Modular model and dashboard development
• Testing: Performance and accuracy validation
• Deployment: Phased rollout across portfolios and desks
• Support: Documentation and knowledge transfer

The Outcome

The transformation enabled the client to:

 

• Reduce portfolio risking time from 8 hours to ~1 hour
• Provide traders with real-time risk visibility
• Enable dynamic valuation and hedging of power station assets
• Improve decision-making speed and operational efficiency

 

The Beacon platform now underpins the supplier’s risk management across both trading and physical asset portfolios, delivering measurable performance and scalability gains.