Harnessing the power of advanced analytics to provide consistent LMP (Locational Marginal Price) basis forecasts across thousands of nodes in the ERCOT and PJM power markets.
When evaluating power assets for development, investment, or acquisition, one of the most important considerations for site selection is the electricity price at any given location.
Typical early- and mid-stage project evaluation or valuation is done with zonal price forecasts or using a simple nodal basis assumption. But these approaches are crude approximations; prices may vary widely between different nodes within the market. If the price at the particular node you are evaluating varies significantly from the zonal price in magnitude or volatility, your preliminary financial projections may be highly inaccurate. Full nodal production cost modeling will provide you with the answers you’re looking for, but early in the project scoping process you may need to assess hundreds of different prospective sites—full nodal modeling at this stage would be cost prohibitive. Similarly, in early stage M&A processes, you likely have neither the time nor the budget to commission a full nodal production cost simulation.
Your solution is FastLMP.
The advanced data analytics methods in our one-of-a-kind FastLMP product provide a consistent and high-quality view of LMP forecasts by combining hourly LMP basis forecasts for two critical wholesale power markets, PJM and ERCOT, with IHS Markit zonal power price forecasts out to 2050. Using terabytes of data in our simple point-and-click mapping interface, we bridge the gap between crude heuristic methods and full nodal production cost modeling, helping customers gain access to better pricing and nodal risk information much earlier in their project lifecycle at an affordable price.
There is no other product in the marketplace that provides you this quantity of accurate and consistent LMP forecast data, with such a user-friendly interface at an affordable price point.