A PFC (Price Forward Curve) is a time series;
- which comes along in the same resolution as the underlying (spot market) and/or schedules
- Power: Hourly (HPFC) / Quarterly (QPFC)
- Gas: Daily (DPFC)
- which “decodes” the average futures prices in the needed time resolution
- Can be based on settlement/end of day future prices or intraday future-price information
It is a key instrument for valuation of assets or consumption with profiled delivery structures and the answer to following questions:
- How much is my Outcome/Income of Power (or Gas) worth?
- What does energy typically cost on a Monday at noon in November? (For example)
- Our green PFCs add to this with analysis and forecast of green energies and other fundamental factors
- Pricing green (Wind/Solar) assets (PPA’s) with this has the advantage that effects like cannibalization are already modeled in the PFC