Azraq MC Radar · Energy Pricing Module · Ornstein-Uhlenbeck

Energy Pricing Model

Mean-reverting simulation of the delivered power tariff, calibrated on National Grid MA's G-3 rate class. This is the reusable module — piloted on the Lynnway Park dashboard, where this derived pricing feeds the NPV/IRR/VaR calculations in place of a flat-drift assumption.

N = 20,000 paths seed 42 T0 = Aug 2026 Exit = Dec 2036 Calibration window: 5yr

Power tariff simulation

Ornstein-Uhlenbeck percentile band (unshaped), c/kWh — the dashed line shows the same median path after the seasonal index is applied for monthly precision.

P25–P75
P5–P95
OU median (unshaped)
Seasonally shaped median
Feasibility flat (18.1¢)

Seasonal index

Multiplicative, normalised to 1.0 annual mean — derived from history excluding the Nov 2022–Apr 2023 gas-crisis months.

Stress comparison

Standard GBM (no mean reversion) used as a ceiling stress test only — not the DCF central case.