E nergy companies have long used weather derivatives to manage the risk of temperature and rainfall on supply and demand. Now some experts think this appetite could be set to grow as renewable energy - the production of which is heavily weather-dependent - becomes a greater percentage of the fuel mix. Weather derivatives could provide the key to managing the price risk caused by intermittency of supply.
The growth of the renewable energy sector has been propelled forward in recent months by
The week on Risk.net, December 2–8, 2017Receive this by email