Revenue put options gain popularity in US power markets

Morgan Stanley seen as top dealer in emerging risk management niche

Market coupling - special report
US power prices have slumped in recent years, making fixed-price hedges less attractive

The past few years have been tough on US power generators. As the shale boom has unleashed plentiful supplies of cheap natural gas, and improvements in energy efficiency have caused electricity demand to flatline, power prices in many parts of the country have been stuck in a multi-year slump.

Against that backdrop, a new type of bespoke hedging tool has grown increasingly popular among those investors willing to take a long view and construct new power plants. Called the revenue put option, it

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here:

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: