Energy trading and sales

PSImarketThe comprehensive solution for ETRM

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Energy trading system for business success in energy markets

• HighdegreeofintegrationofallrelatedprocessesreducesthecomplexityoftheITenvironmentandthenumberofrequiredinterfaces.

• Integrationoffunctionalityforoperationalandplanningprocesses.

• Highdegreeofmodularityforveryflexiblerealizationandintegrationoptions.

• Highflexibilityandconfigurability:userscanmakemodificationsthemselves(noexpensivecustomprogrammingrequired).

• Variousfunctionmodulescanbecombinedandexpandedforcustomer-specificsolutionswhichareoptimizedbasedoncustomerrequirements.

• Fullcompliancewithregulatoryrequirementsandprocesses.

• Highdegreeofprocessautomation• Supportformultipletenants• Supportformultipleproducts• Supportformultiplecurrencies• Supportformultiplelanguages• Auditsecurity• Connectivitytodataanalyticsfunctions• Flexibleworkflowmanagement• Integrationofintra-daytrading• RealizationofthelegalrequirementsregardingGDPRandregulatoryreporting

• Releasability

Energy trading and sales

As one of the leading industrial software manufacturers, PSI Energy Markets GmbH develops integrated solutions for customers in the energy industry. Based on existing standard products, PSI offers a broad range of comprehensive energy trading solutions from a single source.

Asoneoftheleadingindustrialsoftwaremanufacturers,PSIEnergyMarketsGmbHdevelopsintegratedsolutionsfor customers in the energy industry.Basedon existingstandardproducts,PSIoffersabroadrangeofcomprehen-siveenergytradingsolutionsfromasinglesource.PSIEnergyMarketsprovidesaconfigurablesystemasanintegratedsolutionwhichcanbeeasilyandflexiblyadapt-edtotherequirementsofthechangingenergymarkets.TheproductPSImarketsupportsenergytradingwithallessential

functionsfromdealregistration,portfolioandriskmanage-ment,analysisandoptimization,scheduleregistrationandnomination, electronic confirmationmatching (ECM),regulatoryreportsandaccounting.Inaddition,PSImarketcanalsobeusedforenergysalesincludingcontributionmarginaccounting,salesplanning,andsalescontrolling.PSImarketcombinesthefunctionalityofanoperationaltradingsystemwithplanningandoptimizationfunctions.

PSImarket distinguishes itself by the following features

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Trading support

Theflexibilityofthebalancingincombinationwiththefilterconceptallowscomparisonsbetweenallpositions.Thisprovideseasierdetectionofoveragesandunderagesofindividualbooks,portfolios,orthecompleteportfolioaswellasstatementsaboutthefinancialpositioninformofprices, cash flow, profit, and loss. It also visualizes thephysical(netposition)andfinancialimpactofindividualpositions.Theportfoliomanagementmoduleoffersnumerousfunc-tionsforflexiblebalancingofthetransactionsaswellasvisualizationofphysicalandfinancialaspects.

The followingvisualization, analysis, and configurationoptionsareincludedinthestandard:• Visualizationrelativetoadefinedreferenceobject• Flexibleandefficient(alsohierarchical)filtermechanism

• Selectionofthedisplayedtargetseriesfromtargetserieswhicharealreadypredefinedinthesystem

• Definitionoffreetargetseriesbasedononeorseveralsourceseries

• Visualizationmodes"Sum"(comparisonofsalesandprocurement)and"Difference"(balancingofsalesandprocurementpositions)

• Tableandchartvisualization• Multi-chartandmulti-axesvisualization

Bothtableandgraphdisplaysareavailableforvisualization.Forgraphicdisplays,linegraphsaswellasstackedgraphsareintegratedinthesystem.Visualizationwithmultipleaxes andvisualizationwithmultiple charts can also beselected.Theparameterizationofanportfolioanalysisorevaluationcanbesavedasadefinitionwhichcanbeeasilyreusedlaterwithabsoluteorrelativetimesettings.Anefficientbatchprocessprovidesupdatesforthedefinedevaluations. This results in very high performance forprocessingmassivedatavolumes.

PSImarket—Main components

PSImarket— Portfolio managementPSImarket—The portfolio management provides a central "Information cockpit" for all posi-tions. It provides summaries, balancing, and matching of the physical and financial data of all procurement and delivery contracts.

• Pricecalculator

Thepricecalculatormodulegeneratestradingsuggestionsbasedonproductstradedinthemarket;usuallytheobjec-tiveistheclosingofanopenpositionwhichcanbesuppliedto the module from the portfolio management or anyindividualcontract.Theproductsandtransactionswhichcanbeusedforthispurposecanbeconfigured.

Severalbreakdownmodesareavailableforcontrollingthealgorithm;theycanbeparameterizeddependingonthedesiredrisklevel.Thisnotonlysupportsvolume-neutralprocurement coverage but also overage and underage(whichcanbelimited);dependingonthesituation,thisresultsinsignificantlymoreprofitabletradingsuggestions.

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PSImarket – Portfoliomanagement

Summary of key features+ Centralinformationcockpit+ Supportformultiplecommodities+ Bookandportfoliostructurecanbefreelydefined+ "Virtualportfolio"forvisualizationofpossiblescenarios+ Comprehensiveandflexibleevaluationfeatures+ Supportforreportingincompliancewithregulatoryreports

Portfolio overview Position overview

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PSImarket—TradingPSImarket—Trading is a standard configuration of PSImarket which includes all required trading-related modules of the overall system. For both procurement and own trading activ-ities, PSImarket supports a wide range of tasks from capturing trades to auditing and supports front, middle, and back office processes. A variety of individual configurations can be set up task-specifically using the key modules which are described in the following sections as well as other available modules. PSImarket even supports complete and seamless integration of processes for different utility types.

Contract management

ThecontractmanagementisthecorecomponentofPSI-market. It supportsmodelingofavarietyofcontractualarrangements and agreements. These include standardcontracts,derivatives,and“classic”contractswithcomplexenergy-markettermsformultipleproducts.Thecontractmanagementfeaturesarangeofpredefinedcontractmodelsincludingproduct-specificcontractmod-els.Forexample,fixedpricecontracts(includingrates),index-basedcontractsandforwards,physicalandfinancialoptions with fixed or index-based pricing, spot trading

Product definitions

Byproductdefinitions,PSImarketenablesstandardizationandsimplificationoftheworkprocesses.Italsosupportsdefaultvaluessettingsforindividualproductparametersin

order to ensure simple and clear handling of standardproducts.

A unified user interface facilitates management of thevarietyofcontracts;itisbasedonacorecontractmodule.Theuserinterfacevisualizesonlythespecificcontractdataandthoseattributeswhicharerelevantforthecontextofeachcontract.Specialandflexiblemasksforcapturingshort-termspottradesarealsoprovided.

Forfrequentstandardtransactions,amaindataentrytab-with an easy-to-use mask for the required attributes isavailableforfastdataentry.Forenteringadditionalcontractdetails,forexampleinthemiddleoffice,theusualuserinterfaceisdisplayedagain.

Visualization of contracts

PSImarket—Main components

transportcontracts,futureswithmargincalculationandassociatedaggregatecontracts,networkcapacitycontracts,structuredcontracts,differenttypesofswaps,andanumberofspecialcontractssuchasservicecontractsareincluded.PSImarketsupportsthecontractmodelsfortheDACH(or:German/Austrian/Swiss)gasmarket.Forthatreason,allthecontractswhicharespecifictothegasmarketarealsoinclud-ed;forexample,supply,sales,infeed,outfeed,storage,andbalancinggroupcontracts.

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Emission trading

PSImarketsupports theentireemissiontradingprocess.Thisincludesentryandmanagementofcertificates,trada-ble derivatives, emission trading accounts, and tradingperiods as well portfolio visualization of the emissiontrading.

Certificatescanbeassessedbasedon(market)pricecurvesaswellasrebookedmanuallyandautomatically.Thegen-erationofspecificemissiontrading-documentsand"Bank-ingandborrowing"arealsosupported.

Risk management and controlling

Capacity management

Alltradingactivitiesinvolveriskwhichcanbeverysub-stantial due to price volatility. PSImarket implementsmethodsandproceduresforriskassessmentandmanage-mentwhicheffectivelysupporttheminimizationofriskintradingactivities.Theevaluationmethodsdescribedbelowrepresentonlyasmallfractionofthecomprehensiveriskassessment,man-agement,andcontrolfunctionsofPSImarket.Priceforwardcurves(PFC)playanimportantroleinriskassessmentproceduresandindicators.PSImarketprovidescomprehensivesupportforthese.Formark-to-market,alltransactionsareevaluatedagainstthemarketoranycontract-specificpricecurvewhichcanbeselectedbytheuser.Thevalue-at-riskisalsocalculatedusingseveralprocedures.

Ofcourse,theseproceduresalsoincludetheevaluationofoptions using option type-specific standard procedures(Black,Black-Scholes)aswellasadvancedmodelssuchastrinomialtreesfortheevaluationofswingoptions.Otherimplementedstandardfunctionsaretheevaluationof openpositions, sensitivity analysis, determinationofcreditrisk(basedonnetting),anddeterminationoftheriskexposure.Acomprehensiveandhighlyflexiblelimitsystemhasbeenimplementedforriskcontrolling.Itdefines,allocates,andmonitorsphysicalandfinanciallimitsforthetradingactiv-ities and the tradingpartners.The system supports the"four-eye" principle, transaction confirmation for dealsdependingon the financial exposure, andother specialfunctionsforeffectiveriskcontrol.

Thecapacitymanagementmodulesupportstheadminis-tration,evaluation,andmonitoringofbookedcapacitiesand theirutilization.As such, it is alsopartof the riskmanagement.Thecapacitymanagementvisualizesconges-tionspublishedbythetransmissionsystemoperators,thecapacitiesrequestedbythetrading,andthecapacitiesusedbytheactualphysicalpositions.

Toprovideanoverviewofthebookedtransmissionchan-nels,theavailable,booked,andutilizedcapacitiesarevis-ualizedincomparisons.Ifneeded,bookedcapacitiescanbeexplicitlyassignedtocongestions.

PSImarket—Trading

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PSImarket—Main components

Electricity schedule management

PSImarketcreatesschedulesforcontrolzones,powerplantdowntimes, and capacities according to the applicablerules;theschedulescanbecreatedmanuallyorautomati-callyusingbatchjobs.ESS(XML)andKISS(Excel)areusedasscheduleformats.Theschedulesaremanagedinaneasy-to-readtreestructure.Dependingontheconfiguration, schedulescanbe sentautomaticallytothenetworkoperatorbye-mailorstoredonaFTPserver.Thescheduleregistrationsareinternallyversionedandarchived.PSImarket provides a registration assistant to supportmanualcreationofschedules.

Theschedulesandresponsemessagesofthenetworkoper-atorsincludingsendandconfirmationtimesaremanagedinthesystem.Theresponsesofthenetworksoperatorsareentered inthesystemand incaseofcomplaintsby thenetworkoperator,theschedulesaremarkedaccordingly.Thisensuresfastererrordetection.The schedules arecreated inablackbox;however, forbettercoordinationandtracingofpossibledeviationsinthescheduleregistration,atoolforstep-by-steptracingisprovided.

Gas nomination

Forgasmarketnominations,PSImarketprovidessupportforall common business transactions in all commonly usedformats.Extendedconfigurationofspecificformatssuchasforbusinesspartnernominationisalsopossible.

Nominationsareforwardedbyemail.Thesystemsupportsnominationstotherelevantmarketregioncoordinatorsorcounterparts.Inordertosimplifythenominationprocess,PSImarketincludesanominationassistant.

Scheduling and balancing group management

ThebalancinggroupmanagementandaccountingmoduleimplementstheGermanMaBiS(TSO-area)rulesandtheassociateddataexchangebetweenbusinesspartnersandnetworkoperators.Thisincludesmanagementofbalancing

group-specificdatasuchasEICpartycode,contactpersons,balancingandsub-balancinggroupstructures,andproduc-tionandconsumptionbalancinggroups for infeedsandoutfeeds.

Summary of key features+ Completesupportforfront,middle,andbackoffice+ Comprehensivecontractmanagement+ Generationandvisualizationofdiversecontracttypes+ Schedulingandbalancinggroupmanagement+ Capacitymanagement+ Comprehensiveriskmanagementandcontrolling

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Load profile price calculator Time series editor

PSImarket—Trading

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PSImarket—Main components

PSImarket—SalesThe offer calculation module supports key account managers in the calculation of supply offers for large, commercial, and bundling customers. The module also provides cost and profit calculation as well as a multi-level contribution margin calculation. It is available for electrici-ty and gas sales contracts.

Handling

Visualization of results

Scope of services

Theworkflowofacontractcanbevisualizedbyastatusgraph.Thepricesuggestionfunctionofthesystemsuggestspricesforcommodityprice,capacityprice,andbasepricebasedonaprofitmarginspecification.Thepriceanalysisvisualizestheresultingrevenueintablesorgraphsbasedonvariationsofthecommoditypricesandcapacityprices.Contractcopiesallowcalculationandcomparisonofdif-ferentoffervariants.

Thepricerulesobjectisusedformanagingstandardpricesandusingthemincontracts.The so-called delivery point assistant supports simpleimportofstationsbasedonExcellists.Aso-calledcurrentcalculationenablesthere-calculationofacontractonthebasisof themeasuredcurrent loadprofile;thisallowsacomparisonoftheresultsheetwiththeofferatthetimeofitsgeneration.

Adetailedcontributionmargincalculationinformofaresultsheetisprovidedonper-contractorper-connection

basis.Othercontractcalculationsarestoredinthehisto-rian.

Forpreparingoffers,themodulesupportsthefollowing:• Setupofcontractframework• Assignmentofoneorseveralconnectionsoftheselectedbusinesspartnertotheoffer

• Contractcalculationincluding:– Allocationofrevenuepositions(commodityprice,capacityprice,baseprice)andindividualrevenuepositions

– Allocationofindividualcostpositionssuchassharedsalescosts

– Rolloutofloadprofileforthetermofthecontractbasedontheforecastmethodspecifiedfortheconnec-tionincludingholidayratesandsummer/wintertime

– Asanalternative,theloadprofilefortermofthecontractcanalsobeprovidedbythecustomer

– Calculationofthefeesrequiredbylaw(concessionfee,cogenerationfee,EEG—GermanRe-newableEnergyActfeeforelectricity)

– Calculationofthenetworktransmissionfees;thefeesarecalculatedbasedonthepricesheetsoftheinvolvednetworkoperators.Theassignmentisautomaticbasedonthepostalcode/networkoperatorassignmenttable.

• Calculationoftheenergycostsbasedon– Pricecurve(HPFC)– Hedgingtool(loadprofilecomposedofstandardproductsoftheexchangesaswellaspricedetermination)

– Formula– Bookinggroupmodule(debitingofthesalesvolumefromthevolumeoftheprocurementcontractsincludingpricecalculation)

– Specifiedfixedprice• Calculationofthecontributionmargin

Summary of key features+ Offersupportforlarge,commercial,andbundlingcustomers,tariffandresidentialcustomers+ Costandrevenuecalculation+ Multi-levelcontributionmargincalculation+ Integrationoftheene'tdatabase+ Deliverylocationassistantsforfastcalculation+ Contractlifecyclemanagement+ Generationofcontractdocuments

PSImarket—Sales

Offer calculation Offer detail overview

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PSImarket—Main components

PSImarket—AccountingPSImarket accounting is a powerful accounting system. As an integrated tool for calculating and preparing financial data, this solution supports workflow-based accounting of every transaction managed in the system such as compilation of a client invoice, invoicing, and invoice auditing as well as the transfer to a booking system via standard interface..

Accounting

Integration of the accounting in the existing system environment

Invoicing

Thefollowingtasksaresupportedaspartoftheaccounting:• Accountspayable(debit),accountsreceivable(credit),andgeneralledgeraccounts(profitandloss)foraccountingpurposes

• Automaticallygeneratedpaymentsandassociatedcosttypebookingsforallpaymentdatesinthecontract

• Correctionbookings• Verificationofgeneratedbookingsagainstpreviouscalculationresultsandbookingperiods

• Contractcancellationsbyautomaticcreationofoffsetbookings

• Compliancewithaccountingregulationsrelatedtoforeigncountries

Theaccountingalsoincludesallancillarycostsandrevenuepositionswhichcanbeflexiblydefinedinthesystem,andappliesanyapplicablediscounts.Fiscalcomplianceandinvoicinginforeigncurrenciesarealsoincluded.

Theaccountingmodulecaneitherbeoperatedasafullyintegrated accounting system including invoicingorbeusedinareducedconfigurationforprocessingandexport-ingitemstoanexternalaccountingsystem.Inbothcases,theinvoicepositionsandcosttypebookingscanbetrans-

ferredtoageneral ledger suchasSAP.Theaccountingsystemprovidessimulationofincominginvoicesforverifi-cation.Itisalsousedassourceforcheckingthecollateralsaspartofthecreditriskcalculation.

PSImarketaccountingalsoincludesanoptionalinvoicingfeature.Invoicesaregeneratedbasedonthepaymenttermsdefinedinthecontract.Thedueinvoicesincludingdataverificationcanbegeneratedautomaticallyindefinedtimeintervals(e.g.monthly).Additionalinvoicefunctions:• Generationofsimulatedincomingandoutgoinginvoices

• Preparationofoutgoinginvoicesbasedonbusinesspartnerinformation(taxinformation,nettingoptions)andgroupinginformation(costtypes)

• Generationofinvoicesforadvancepayments• Flexibledesignofinvoicelayout(alsobusinesspartner-specific)

• Verificationandmodificationoftheinvoice• Designationofthevolumesassociatedwithcostbookings

• Changetracking• Verificationofincomingpayments

Summary of key features+ Powerfulaccountingsystem+ Completelyintegratedintheoverallsystem+ Workflow-basedaccountingofthetransactionsmanagedinthesystem+ Flexibledesignofinvoicelayout+ Changetracking+ Verificationofincomingpayments

Cost type bookings

PSImarket—Accounting

Invoice document

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PSImarket—Main components

Your benefits+ HighdegreeofintegrationofallrelatedprocessesreducesthecomplexityoftheITenvironmentandthenumberofrequiredinterfaces.+ Highdegreeofprocessautomation+ Integrationoffunctionalityforoperationalandplanningprocesses.+ Highdegreeofmodularityforveryflexiblerealizationandintegrationoptions.Variousfunctionmodulescanbecombinedandexpandedforcustomer-specificsolutionswhichareoptimizedbasedonthecustomerrequirements.+ Highflexibilityandconfigurability:userscanmakemodifications(no+ customprogrammingrequired).+ Fullcompliancewithregulatoryrequirementsandprocesses.

Easy to use

Even complex processes must be easy to use. Therefore, we pay particular attention to the design and usability of the user interfaces and dialogs.The continuous communication with you pro-vides the basis for new enhancements and devel-opments.

+ Clearly structured menu design + Graph and table visualization + Individual adaption of the visualization + Comprehensive navigation functions + Multi-language user interfaces + Configurable contract cockpit

Integration und Offenheit

Integration and openness

Our interface development experience over many years is the basis for a future-proof IT infrastruc-ture. The usage of standard interfaces and the definition of new standards make the data exchange with existing IT systems secure and stable.

+ Standard interfaces to numerous CRM, EDM, and business systems

+ Financial accounting and invoicing + Sales + Optimization + Import of exchange prices, delivery schemes, contracts, weather forecasts, and counter points.

PSI Energy Markets GmbH

Kriegerstraße1E30161HanoverGermanyPhone:+49511610189-0Fax:+49511610189-77www.psi-energymarkets.dewww.psi.de

ContactpersonPhone:+49302801-1715Fax:+49302801-1005em-vertrieb@psi.de

©PSIEnergyMarketsGmbH2019-1