Nissha Metallizing Solutions: Energy Forecasting & Contract vs Spot Price Optimisation

Navigating energy contract negotiations has been incredibly challenging due to the volatility of energy prices and the fragmented nature of our data sources.

Dirk Bijnens

Site Manager

Nissha Metallizing Solutions NV

Need

Strategically compare energy contract options by integrating manufacturing plans, renewable energy predictions, and grid consumption data.

The Challenge of Energy Forecasting

Nissha Metallizing Solutions is a global leader in coating and metallising processes, which involves energy-intensive manufacturing processes. To align with its sustainability goals and cost optimisation strategies, Nissha has integrated renewable energy sources like wind and solar power into its energy mix. Given the complex and energy-intensive production processes, Nissha aims to negotiate energy contracts upfront with a predetermined price so as not to be exposed to fluctuating spot prices.

Nissha needs to have a detailed idea of production plans for the next period, as well as an estimation of wind and solar energy produced. The difference between the two is then the amount of energy they have to supply from the grid. Forecasting this manually proves to be a cumbersome task.

In order to avoid having exposure to fluctuating energy spot prices and negotiate energy contracts upfront with a pre-agreed rate, Nissha needed:

A Unified Energy Data Ecosystem: This will enable capturing more insights from data, especially since energy comes from multiple sources—grid consumption, wind, and solar production.
Aligning Production & Energy Usage: Achieving this alignment presented opportunities to further optimise efficiency and reduce exposure to fluctuating energy prices.
Automated Planning & Forecasting: A more automated and predictive approach could further support data-driven decision-making and streamline planning.

The solution

An AI-Driven Energy Monitoring Tool

Integrated Data Dashboard

Consolidates manufacturing schedules, historical data, renewable energy production, and grid consumption for actionable insights.

Advanced Visualizations

Tracks trends in energy demand, production, and prices to support data-driven decision-making.

Simulation Capabilities

Enables scenario planning for renewable energy production, grid usage, and pricing to mitigate financial risks.

Contract Cost Comparison

Provides a detailed evaluation of energy contracts, allowing for scenario-based cost analysis and optimization.

Integrated Data Dashboard

Consolidates manufacturing schedules, historical data, renewable energy production, and grid consumption for actionable insights.

Advanced Visualizations

Tracks trends in energy demand, production, and prices to support data-driven decision-making.

Simulation Capabilities

Enables scenario planning for renewable energy production, grid usage, and pricing to mitigate financial risks.

Contract Cost Comparison

Provides a detailed evaluation of energy contracts, allowing for scenario-based cost analysis and optimization.

Solution

Energy Forecasting & Optimisation System

Faktion partnered with Nissha to design a robust tool that consolidates energy data, forecasts production and consumption, and simulates future scenarios for contract optimisation.

Key Features and Innovations:

Integrated Data & Visualisation: Aggregates data from manufacturing plans, energy consumption, renewable production, and spot energy prices. The tool also tracks trends in energy demand, production, and prices to support data-driven decision-making.
Advanced Forecasting & Simulation: Enables users to simulate alternative futures, such as high or low renewable production or unfavourable energy prices. Outputs include:
- Predicted total energy demand and grid consumption
- Renewable energy production
- Spot price trends
Energy Contract Optimisation: Evaluates energy contracts based on pledges and pricing, allowing Nissha to:
- Define pledges and prices
- Compare scenario-based cost estimates
- Incorporate fixed renewable energy costs for realistic calculations

Approach

Faktion’s approach focused on iterative development and close collaboration with Nissha to deliver a tailored solution:

Data Integration and Exploration:

Consolidating diverse datasets (e.g., renewable production, spot prices, and manufacturing plans).
Validating inputs with domain experts to ensure accuracy and relevance.

Predictive Modelling and Simulation:

Developing machine learning models to forecast energy consumption and renewable production for various scenarios.
Simulating alternative futures, allowing NMS to assess risks and optimise contract strategies.

Tool Development:

Building a modular and intuitive tool with functionalities to:
- Upload and visualise input data.
- Tweak parameters like renewable usage costs, pledge levels, and spot prices.
- Generate visualised contract cost comparisons.

Deployment and Iteration:

Delivering the tool in phases, allowing user feedback and iterative refinement.

Ensuring compatibility with Nissha’s IT ecosystem and compliance with sustainability goals.

Outcome

Successfully navigating complex energy management & cost

The AI-powered energy forecasting & optimisation tool transformed how Nissha manages energy procurement, pricing, and consumption.

Real-time insights into energy demand, consumption and production.
Smarter energy contract selection, reducing exposure to spot prices.
Reduced manual workload due to automated forecasting and planning.
Much more sustainable energy management.

By adopting this innovative solution, Nissha now has the tools to navigate energy market volatility, maximise renewable energy utilisation, and achieve cost-effective, sustainable operations.

‍