For investors and owners of renewable energy investments, portfolio management involves the strategic selection and monitoring of a diversified range of investments across various technology classes and regions.

The aim is to balance risk and return for the entire portfolio by analysing performance, assessing project profitability, considering market trends and optimising the asset mix for sustainable growth and resilience.

Distinction from operational asset management

While portfolio management focuses on the strategic monitoring of investments, operational asset management is concerned with the day-to-day management and maintenance of individual renewable energy assets. This distinction is crucial for understanding the different roles that each type of management plays in the overall success of an investment.

Operational asset management:

• Includes the routine operation, maintenance and performance optimisation of renewable energy assets such as solar farms and wind turbines.
• Ensures that the plants operate efficiently and safely and comply with legal requirements.
• Takes care of immediate technical issues, performs regular inspections and manages repairs and upgrades.

Portfolio management:

• Takes a broader view of the portfolio and focuses on the overall strategy for resource allocation across multiple investments.
• Balances the risk-return profile of different investments to achieve long-term financial goals.
• Includes high-level decisions on where to invest, how much to invest and when to make portfolio adjustments.

Key components of portfolio management

Key components include portfolio benchmarking, financial and technical controlling, and impact analysis.

This holistic approach aims to make informed investment decisions on where and how much to invest and when to adjust the portfolio, ensuring both financial targets are met and contributing to the global transition to sustainable energy sources.

Portfolio benchmarking is important in various scenarios

• Performance Review: It helps in checking the actual performance of assets against predefined goals or other assets within their peer groups.
• Risk Management: By comparing peer groups, potential risks can be identified early, allowing for appropriate measures to be taken.
• Optimisation: It facilitates the identification of improvement potentials within the portfolio and supports the optimisation of the investment strategy.
• Transparency and Trust: Regular benchmarking creates transparency and strengthens investors’ trust in portfolio management.

Benefits for investors

• Informed decision-making: Comparing with benchmarks provides valuable insights for making informed decisions.
• Call to action: Benchmarking various different financial or production related KPIs enables deep insights and a precise all to action.
• Competitive advantage: Investors can detect trends and developments early and react accordingly through benchmarking.
• Efficiency improvement: Identifying and addressing weaknesses leads to more efficient use of resources and better overall portfolio performance.
• Long-term planning: Benchmarking provides data that can be used for strategic planning and the long-term alignment of the portfolio
• Back-testing: Comparison within peer groups allows to check and verify original assumptions for individual business plans and allows early adjustments when required.

Key aspects of portfolio benchmarking

1. Asset comparison on technical and financial KPIs
   In the renewable energy sector, comparing assets based on financial and technical key performance indicators (KPIs) is essential.
   
   Financial KPIs e.g. include earnings, revenue, cost and cash related KPIs, while technical KPIs include e.g. energy production and availability.

2. Coherent visualisation of asset performance

   A coherent visualisation of asset performance is crucial to make complex data understandable. This can be achieved through dashboards, graphs, and heatmaps, which provide a quick overview of performance and make trends and deviations easily recognisable.

3. Linkage and root cause
   Another important aspect of portfolio benchmarking is linking data and identifying the root causes of deviations. By analysing the causes, measures can be developed to improve performance. For example, lower energy production might be due to technical issues or unfavourable weather conditions, whereas as revenue deviation might result out of a volume deviation (lower production) or price deviation (unexpected market conditions). Identifying such causes allows for targeted corrective actions and minimises future risks.

Portfolio benchmarking is an indispensable tool in portfolio management for renewable energy investments. It enables a comprehensive evaluation of asset performance, supports the optimisation of investment strategies, and contributes to the long-term value enhancement of the portfolio. By comparing financial and technical KPIs, coherently visualising performance, and identifying the root causes of deviations, investors can make informed decisions and manage their investments more efficiently.

In the field of renewable energy, technical controlling plays a central role in ensuring the efficiency and reliability of renewable energy assets.

Technical controlling encompasses various processes and techniques that enable operators not only to monitor their plants, but also to optimise them in a targeted manner. Here are the key aspects of technical controlling:

 

Understand production potential achievement
A key component of technical controlling is determining and monitoring the production potential of the systems. This involves continuously recording and analysing data from various energy sources such as wind farms and solar plants. This is made possible by power curve charts. These charts show the relationship between e.g. wind speed / solar irradiance and the energy generated, allowing operators to assess the actual output of their wind turbines compared to the theoretical maximum output. By analysing these curves, operators can see how efficiently their turbines are working and where there is potential for optimisation.

Identify losses and root causes
Another critical aspect is the identification of losses and their causes. By systematically analysing error logs, operators can recognise patterns and recurring problems. This enables targeted diagnosis of technical faults, inefficient operating conditions or external influences. Detailed analyses and reports help to quickly identify the roots of problems and take appropriate action.

Being lead to focus and action
10/15-minute data provides precise and timely recording of performance parameters. Continuous monitoring at short intervals allows deviations and anomalies to be recognised immediately. This enables a rapid response and the implementation of improvement measures, thereby increasing efficiency and minimising downtime.

Be prepared for alignment with service providers
Another important aspect of technical controlling is the preparation and coordination of collaboration with service providers. By documenting and analysing plant performance in detail, operators can communicate precise requirements and expectations to their service providers. This leads to better coordination and cooperation, which in turn increases the quality and efficiency of maintenance and repair work.

 

Technical controlling in the renewable energy sector offers comprehensive tools and methods to optimise the efficiency and reliability of energy plants. It helps operators to understand the production potential of their plants, identify losses and their causes, focus on key areas of action and improve cooperation with service providers. Effective technical controlling can significantly increase the efficiency and reliability of energy generation, which ultimately leads to a more sustainable and cost-efficient energy supply.