Hedging Wind Power Risk Exposure through Weather Derivatives

Hedging Wind Power Risk Exposure through Weather Derivatives

We introduce the industrial portfolio of a wind farm of a hypothetical company and its valuation consistent with the financial market. Next, we propose a static risk management policy originating from hedging against volumetric risk due to drops in wind intensity and we discuss the consequences. The...

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Bibliographic Details
Main Authors: Giovanni Masala, Marco Micocci, Andrea Rizk
Format: Article
Language:English
Published: MDPI AG 2022-02-01
Series:Energies
Subjects:
risk management
wind farms
weather risk
weather derivatives
value-at-risk
day-ahead electricity prices
Online Access:https://www.mdpi.com/1996-1073/15/4/1343

Internet

https://www.mdpi.com/1996-1073/15/4/1343

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