As one of Europe’s five largest electricity and gas companies and the leading power producer in Germany, RWE supplies electricity and gas to over 24 million customers. When writing new gas contracts, RWE relies on complex models that factor in market prices, estimated demand, exchange rates, and projected daily temperatures. To manage risk, the company purchases futures and options, which serve as a hedge against market volatility.
RWE worked with MathWorks Consulting to build and deploy the computational kernel of EwITA (Entwicklung IT-Zielarchitektur Strom und Gas), an automated system for accounting, portfolio, and risk management. EwITA is a module within the SAP framework used at RWE. Based on MATLAB®, it enables analysts to quickly update models in response to changing market conditions, and provides consistent, reliable results enterprisewide.
“MATLAB was the ideal solution for this core business application,” says Dr. Norbert Tönder, IT project manager at RWE IT GmbH. “First, MATLAB provides precise results for very complex calculations. Second, the MATLAB language enables users to easily create sophisticated models and understand models written by others. Third, using MATLAB Compiler SDK we can integrate EwITA into our existing SAP framework. Last, with MATLAB we can extend the system to meet our future needs.”