The Art of Hedging

Wind Industry Profile of

By 2030 only 6% of Europe’s wind energy capacity will be unexposed to market risks through support schemes, down from 75% today. This means that the transition to auctions allocating renewable energy support comes with more exposure to price risk.

One new way to address uncertainty on project revenues is hedging against volume risk. This is according to The value of hedging, a new report published today by WindEurope and Swiss Re Corporate Solutions. Hedging is emerging as an instrument to cover the resource risk of variable wind generation, or ‘volume risk’. Auctions, feed-in-premiums and power purchase agreements take away some of the price risk. But they still leave asset owners exposed to a degree of... ... More: Official Press Release WindEurope

Keywords:

WindEurope, hedging, Amsterdam, report