Overcoming power hedging constraints

Power plays

Hedging strategies - generation assets

Gas prices are a main factor for why hedging strategies for power generation assets need to be re-evaluated say risk managers. This is because it has become increasingly difficult to gauge future price movements, which in turn nulifies some of the hedging options.

According to the International Energy Agency's (IEA) market benchmark World Energy Outlook 2010 report, published in November, energy demand is set to resume its upward trajectory from 2010, following the estimated decline of 2% in 200