How to get maximum value from power plant hedging

Dynamic hedging is becoming more common among plant operators

Power plant

The primary source of financial uncertainty over the revenues of fuel-fired power plants is the volatility of prices in power, fuel and emissions allowances. Traditionally, power plant operators have reduced the uncertainty of their revenues by entering into long-term agreements on power, fuel and, more recently, emissions allowances. This static strategy is not the only possibility operators face; since liquidity in wholesale markets has increased, dynamic hedging is becoming common practice.

C

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net 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 indvidual account here: