cQuant.io is a seven-year-old company that provides what CEO, David Leevan, calls “robust simulation-based analysis of assets, contracts, portfolios and more.” He describes it as a “PhD and quant-driven company that has built proprietary models for almost all energy assets imaginable from nukes through coal, renewables, storage, hydro and more.” In essence, David sees cQuant as quite different to most other vendors out there with well-defined differentiators. “We are good at simulating risk factors,” he said. “We can do that in a correlated manner across a broad range of risks like weather, load, prices etc. on an hourly or sub-hourly basis and out for 20-years. So, when simulating energy portfolios, customers can access a robust set of simulated future outcomes and optimize or value everything in a portfolio.” cQuant comprises of a front-end risk factor simulator and a back-end portfolio and hedging optimizer, he told me.
Over the last seven years, cQuant has been working mostly in North America and 90% of its current customers are currently based there. It has worked with corporate off takers, utilities, IPPs, Front Office groups and traders, renewables firms, and other load serving entities in that market, he told me. It covers power as well as the fuels that feed into power and its “customers tell me that we can do the analytics side of their business better than just about anyone,” he said. Now, cQuant is targeting Europe too.
cQuant has made some senior and experienced hires in Europe to get things started and for the last 10-months have been working to market and sell in Europe. Often, however, North American customers have also had Asia-Pacific and European operations that has exposed cQuant to those markets. “Our solutions are geared up for open markets as we can simulate price signals in competitive markets very well,” he said. He also refers back to customer comments regarding the quality of cQuants’ analytics as another reason for entering the European market. “We feel we have a true differentiator there and users can squeeze every last dollar of value out of their portfolios while minimizing uncertainty,” he said. “Most solutions simply can’t do this at the contract, asset and portfolio level.”
The cQuant solution is available as software as a service and have also launched a ‘portfolio management as a service’ service that is aimed at renewable developers specifically. “We help energy companies discover what is driving day-to-day changes in their portfolio valuation, what is driving uncertainty in that portfolio, and how to optimally manage that. We think that we are unique in that regard.”