Our Electric Generating Company Simulation is an open market energy simulation with five different energy generation companies: three regulated and two unregulated. Teams are challenged to manage an existing portfolio of energy generation plants. Each company has a different configuration with some including sustainable energy and others limited to more traditional generation such as coal, gas, and nuclear.
Developing business acumen in the industry is one of the core objectives. The interrelationship between regulatory rules, seasonality, operations, cost of capital, depreciation, fuel price fluctuations, and subsidies variables creates a rich environment for learning. Throughout the Energy Simulation, teams make decisions about strategic direction and investments over 10 years.
Facilitators can alter market demand assumptions, cost of capital, fuel price, and carbon taxes as curveballs to challenge assumptions and build agility. A series of press releases integrated with the storyline increase engagement.
Energy simulation activities include:
- Evaluating your competitive position, growth strategy, and risks
- Determining key measures of success for your organization.
- Starting a rate case (regulated companies)
- Managing cash and capital to finance growth
- Investing in new plants, expansion. and new technology
- Adjusting production to manage seasonal demand
- Managing capital investments to maintain or sunset plants
- Monitoring and improving company performance
Participants complete the experience with a more strategic understanding of the dynamics of the energy world. The Energy Simulation tests and offers practice in leadership in the VUCA (volatile, uncertain, complex, and ambiguous) world of energy.