What is horizontal tranching in SAP IS-U-EPM - Energy Portfolio Management?

SAP Term: horizontal tranching

• Component: IS-U-EPM

• Component Name: Energy Portfolio Management

• Description: A characteristic of a tranching rule. Horizontal tranching involves classifying a load shape for a period into tranches potential deals.

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• Key Concepts: 
  Horizontal tranching is a feature of SAP IS-U-EPM Energy Portfolio Management that allows energy suppliers to divide their energy portfolios into different tranches. Each tranche is a separate portfolio with its own set of rules and regulations. This allows suppliers to manage their portfolios more efficiently and effectively. 
  
  How to use it: 
  To use horizontal tranching, energy suppliers must first define the parameters of each tranche. This includes the type of energy, the amount of energy, and the pricing structure. Once these parameters are set, the supplier can then assign each tranche to a specific customer or group of customers. The supplier can then manage each tranche separately, allowing them to optimize their portfolios for maximum efficiency and profitability. 
  
  Tips & Tricks: 
  When setting up horizontal tranching, it is important to consider the different types of customers that will be using each tranche. This will help ensure that each tranche is tailored to meet the needs of its customers. Additionally, it is important to keep track of the performance of each tranche in order to identify any areas that need improvement or optimization. 
  
  Related Information: 
  SAP IS-U-EPM Energy Portfolio Management also offers other features such as portfolio optimization, risk management, and analytics. These features can be used in conjunction with horizontal tranching to further optimize energy portfolios and maximize profits. Additionally, SAP offers a range of training and support services to help energy suppliers get the most out of their portfolios.