These are derivatives on top of weather.
Get:
- Exposure to temperature
Order of impact:
- temperature
- wind
- solar levels
Used to:
- Hedge operational risk
- A system of delivering risk
- Weather financial protection
Further considerations:
- Why battery owners must hedge against boring weather and how low-volatility conditions could quietly erode their revenues.
- When will people turn on the heating
Recently:
- Wind drought - missed opportunity cost