Stage 5 (2022) “Tesla’s Toil”

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Stage 5 (2022) "Tesla's Toil"

This is an actual case study that was presented to the participants of the Financial Modeling World Cup 2022, Stage 5 (July 22-25).

Case study description:
Your uncle, Nikola, has been doing some research on reducing his electricity bill. Until now he has not given energy usage much thought, but with electricity prices in the region rising, he is becoming more conscious about his monthly costs. He knows that you are a financial modeling wizard and would like your help in preparing an analysis of his estimated average monthly electricity consumption and the cost thereof. He would also like you to overlay some functionality to the model to help him assess the potential benefits of installing a solar and battery setup at his house to offset some of his consumption.

Your goals are to estimate Nikola’s average monthly electricity consumption, to calculate the associated cost of electricity purchased from the grid, and to assess the potential benefits of installing a solar and battery setup at his house.

Nikola wants to reduce his electricity bill due to rising prices. For this purpose, he provided details of the 10 categories of appliances he uses at home, along with the average energy consumption per appliance category per month of a typical year. He would like to take into consideration his daily routine, appliance consumption per hour, and standby consumption. Additionally, he wants to account for seasonality, as he uses some appliances differently depending on the season. Nikola buys his electricity from a local energy consolidator that sells electricity to consumers using a time of use tariff structure. He has given the forecast “Hourly Energy Tariffs” for the year. Nikola would like to test the reasonableness of the monthly electricity consumption model by comparing the implied cost of electricity from the model to his monthly electricity bills. Moreover, he would like to understand how much of his current consumption from the electricity grid could be reduced if he were to install some solar panels and a battery at his house.

The downloadable file consists of the following:
Task: PDF file with Case Materials; PDF file with Questions; Excel file with initial data and case assumptions
Solution: Excel file with full Solution Model; PDF file with correct Answers in Bold

You can also buy tickets to participate in the future FMWC Stages here.



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