Managing a reservoir-based hydro-energy plant: building understanding in the buy and sell decisions in a changing environment

This paper describes a modelling process at a Norwegian chemical producer, who owns 20% of a reservoir based hydro-energy plant. While the initial objective was to increase the profitability of the energy plant (in particular by an improved understanding of buying and selling decisions and a reconciliation of the managerial and engineering points of view in the context of a liberalised energy market) the process resulted in the company's decision to refocus on its core-business. The process illustrates how a modelling process can lead to a fundamental reframing of the issue, resulting in major change for the company.