ElectriCity - Utility Management

In the ElectriCity simulation, participants take over the management of an imaginary electricity company, where they have to analyze market demand and their own operations and implement a corporate strategy by making operational, sales and investment decisions. The goal is to increase the efficiency index (which includes profit and liquidity, market share and sustainability) and achieve the highest index in the market. The simulation includes decisions to be made in the areas of electricity generation and procurement, investments, pricing and promotion, as well as HR and finance, at a strategic management level.

Although technical issues are very important in electricity supply, in this simulation, where the emphasis is on market and financial modeling, we treat them in a simplified way, for example, the energy exchange also appears, but not at the daily trading level. Three “technical factors” are required for electricity supply: providing infrastructure, technical workers, and the energy produced or purchased itself. In addition to permanent - periodic decisions, it is also possible to decide on the launch of various investment and development projects (for example: energy storage, own power plant program, IT development, product development, etc.). An example:

How ElectriCity simulation software works:

  • The students form groups and take over the management of the virtual electricity provider company in the simulation software.
  • The virtual company is managed by making strategic decisions yearly period. The software provides immediate feedback about the expected results of the decisions, and it also shows the important economic indicators (profit, cash flow, turnover, market share etc.) on graphs.
  • The software can simulate up to 8 periods.

Advantages and learning points:

  • The complexity of the program helps students of financial studies to synthesize their knowledge and translate it into practice.
  • The game gives a sense of the competitive energy market situation, in which energy service providers themselves are active participants.
  • ElectriCity requires the combined operation of many factors, as is typical of the world in general. Careful strategic planning is also essential in this game.
  • Since participants have to filter the appropriate data from various financial and commercial reports (balance sheet, income statement, cash flow, market research report), the simulation tests and develops analytical skills.
  • Based on the above, the successful implementation of teamwork, which is so important in life, is also essential for a successful appearance in the game.