Fair Isaac Corporation

14/08/2024 | Press release | Distributed by Public on 14/08/2024 22:10

PSR & FICO Optimize Mexico's Energy and Flood Management

PSR, a global provider of analytical solutions for the energy sector, has significantly enhanced the operation of Mexico's power and water systems by leveraging FICO® PlatformEnterprise Optimization capabilities. Mexico's Centro Nacional de Control de Energía (CENACE), responsible for coordinating and operating the national power system, has used these advanced tools since 2021 to optimize energy management and production and improve water resource management, leading to substantial economic and environmental benefits.

The successful implementation has not only mitigated floods in places like Tabasco, benefiting the 1 million residents of the region, but also saved the Mexican government a remarkable US$300 million in cost savings in 2022 alone.

"Optimizing the storage levels in hydroelectric plant reservoirs in uncertain conditions is crucial for balancing water use between energy production and consumption needs, while adhering to environmental constraints and preventing floods," said Raphael Chabar, executive director of optimization and analytics at PSR. "The contribution of FICO Platform is essential, as it serves as the central resolution engine that streamlines decision-making and ensures optimal results swiftly."

You can read more about this story in the full media release.

Transformational Energy and Water Management Optimization

CENACE, the official entity tasked with the operation of Mexico's power system, adopted PSR's computational tools to handle multiple sources of uncertainties - such as inflows, renewable energy cources and production, energy consumption and demand, and fuel prices. By utilizing a probabilistic approach powered by FICO Platform, CENACE has optimized the management of hydroelectric reservoirs, balancing energy production with flood prevention efforts.

Before adopting FICO Platform, CENACE's energy management system planning relied on deterministic optimization, which posed significant risks when future events deviated from predictions. This conservative approach often led to excessive water accumulation, exacerbating flood impacts during heavy rains. The shift to an optimization approach based on probabilistic and statistical methodologies marked a significant improvement in decision-making and risk management, resulting in a more robust national infrastructure.

"Modeling the planning process requires considering a long horizon of uncertainty scenarios, with multiple stages spanning years, in monthly or weekly resolutions, and each energy generator having an individualized representation, which is tremendously complex," said Chabar.

A Solution Where Everything Flows as it Should

Thanks to PSR's cutting-edge optimization approach enabled by FICO Platform, CENACE has achieved more accurate operational and risk assessment analyses, significantly improving energy and water security. In the Tabasco region, proper management of water reservoirs is crucial for flood mitigation, directly benefiting around 1 million residents. Additionally, Mexico's efficient management of its electrical grid supports the energy transition and reduces energy dependence; natural gas imports for electricity generation decreased by 4% in 2022 compared to the previous year.

"The success of this project is evident in the stable flow of the Usumacinta and Grijalva rivers, which now operate within their natural parameters," said Mario Veiga Pereira, founder of PSR. "By avoiding excessive water accumulation, we have mitigated flood risks and ensured a more reliable energy supply. This balance not only safeguards the environment but also enhances the quality of life for the people in Tabasco, something we are really proud of."

For its achievements, PSR won the 2024 FICO® Decision Award for ESG Champion.

"What can be more important that managing water, the lifeblood of the planet?" said Eric Kavanagh, CEO of Bloor Group, host of InsideAnalysis, and one of the FICO Decision Awards judges. "This initiative demonstrates how companies can solve incredibly complex problems using advanced tools to deliver outcomes that impact the lives of millions of people."

To see the full list of 2024 FICO Decisions Awards winners, check out: https://www.fico.com/en/decisionsawards.

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