Innovative optimization features help Mexico’s National Center for Energy Control improve energy efficiency and reduce flood risk
MEXICO CITY, August 14, 2024–(BUSINESS WIRE)–FICO (NYSE: FICO):
Highlights:
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PSR uses FICO® Platform features for business optimization help improve energy production and water resource management
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CENACE, Mexico’s National Center for Energy Control, uses PSR’s tools to optimize the country’s power grid operations
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Implementation will result in savings of over $300 million in 2022 and improved flood management in Tabasco
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PSR won the FICO 2024® Decision price for ESG champion
PSR, a global provider of analytical solutions for the energy sector, has significantly improved the operation of Mexico’s power and water systems by leveraging the enterprise optimization capabilities of the FICO® platform. Mexico’s Centro Nacional de Control de Energía (CENACE), responsible for coordinating and operating the national power system, has been using these advanced tools since 2021 to optimize energy production and improve water resource management, resulting in significant economic and environmental benefits.
Its successful implementation not only alleviated flooding in places like Tabasco, benefiting one million residents in the region, but also brought the Mexican government a remarkable $300 million in savings in 2022 alone.
More information: https://www.fico.com/en/platform/enterprise-optimization
Watch PSR tell his story in the video
“Optimizing storage levels in hydroelectric power plant reservoirs under uncertain conditions is crucial to balance water use between energy production and consumption while complying with environmental regulations and preventing flooding,” said Raphael Chabar, Executive Director of Optimization and Analytics at PSR. “The contribution of the FICO platform is critical as it serves as a central solution engine that streamlines decision making and ensures optimal results quickly.”
Transforming energy and water management through advanced optimization
CENACE, the official body in charge of operating the Mexican electricity grid, has adopted PSR’s computational tools to manage multiple sources of uncertainty – such as inflows, renewable energy production, energy demand and fuel prices. By using a probabilistic approach based on the FICO platform, CENACE has optimized the management of hydroelectric reservoirs and balanced energy production with flood protection measures.
Before adopting the FICO platform, CENACE relied on deterministic optimization for its planning, which entailed significant risks when future events deviated from predictions. This conservative approach often led to excessive water accumulation and exacerbated the impact of flooding during heavy rain. Switching to an optimization approach based on probabilistic and statistical methods has significantly improved decision-making and risk management, and has resulted in a more robust national infrastructure.
“Modelling the planning process requires considering a long horizon of uncertainty scenarios with multiple phases over several years, in monthly or weekly resolutions and an individual representation of each energy producer, which is enormously complex,” said Khabar.
A solution where everything works as it should
Thanks to PSR’s cutting-edge optimization approach, enabled by the FICO platform, CENACE was able to perform more accurate operational and risk assessment analyses, significantly improving energy and water security. In the Tabasco region, proper management of water reservoirs is critical for flood protection, directly benefiting around 1 million residents. In addition, Mexico’s efficient management of its electricity grid supports the energy transition and reduces energy dependence; natural gas imports for electricity generation fell by 4% in 2022 compared to the previous year.
“The success of this project is reflected in the stable flow of the Usumacinta and Grijalva rivers, which now flow within their natural parameters,” said Mario Veiga Pereira, founder of PSR. “By avoiding excessive water accumulation, we have reduced the risk of flooding and ensured a more reliable energy supply. This balance not only protects the environment but also improves the quality of life of the people of Tabasco, something we are really proud of.”
“PSR’s innovative application of the FICO platform has set a new standard in energy and water resource management,” said Nikhil Behl, EVP of Software at FICO. “Their ability to optimize complex systems to plan for uncertainty not only saves costs, but also ensures environmental safety and demonstrates the power of advanced analytics in achieving sustainable outcomes.”
For its achievements, PSR received the FICO® Decision Award 2024 for ESG Champion.
“What could be more important than managing water, the lifeblood of our planet?” said Eric Kavanagh, CEO of Bloor Group, host of InsideAnalysis and one of the judges of the FICO Decision Awards. “This initiative shows how companies can use sophisticated tools to solve incredibly complex problems and achieve results that impact the lives of millions of people.”
The full list of 2024 FICO Decisions Awards winners can be found at: https://www.fico.com/en/decisionsawards.
About PSR
PSR is a global provider of analytical solutions for the energy sector, offering innovative consulting services and dedicated software for energy system planning. With products deployed in over 70 countries, PSR contributes to the research and development of tools that ensure reliable, cost-efficient operation of energy systems and support decarbonization efforts.
About the FICO® Decisions Awards
The FICO Decisions Awards recognize organizations that achieve remarkable success with FICO solutions. A panel of independent judges with extensive industry expertise evaluates nominations based on measurable improvements in key metrics, demonstrated application of best practices, project scope, depth and breadth, and innovative use of technology. The 2024 judges are:
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Andrew BirminghamEditor, Mi3
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Eric KavanaghCEO Bloor Group and host, Internal analysis
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Elizabeth Lumleydeputy editor, The Banker
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Paul Mahsenior editor, CDO Trends
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Laura MartinsEditor, IT Forum
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Paul RobinsonVP Credit Management at Canadian Tire Bank (previous winner)
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Shiv SehgalEVP Audience Analytics at RSG Media (previous winner)
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Nick VitchevDirector at Chartis
About FICO
FICO (NYSE: FICO) powers decisions that help people and businesses around the world succeed. Founded in 1956, the company is a pioneer in using predictive analytics and data science to improve operational decisions. FICO holds more than 200 U.S. and foreign patents on technologies that increase profitability, customer satisfaction and growth for companies in financial services, insurance, telecommunications, healthcare, retail and many other industries. With FICO solutions, companies in more than 100 countries do everything from protect 4 billion payment cards from fraud to improve financial inclusion and increase supply chain resilience. Used by 90% of the largest U.S. lenders, the FICO® Score is the standard measure of consumer credit risk in the U.S. and has been made available in over 40 other countries to improve risk management, credit access and transparency.
For more information, visit www.fico.com.
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Contacts
Cybele Toller
In the press report Novelli for FICO
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Thai Sabatini
FICO
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