Page 13 - CARILEC CE Journal Nov 21

RENEWABLE ENERGY:

A GREENER

HEDGE?

Authors: Zsaria Diaz, Siana Teelucksingh, Kaitlyn Bunker

Price volatility in the fossil fuel market is a major thorn in the sides
of electric utilities that rely on fossil fuels for some or all of their
electricity generation. Traditionally, financial hedging is often used
to combat upswings in fuel prices thereby protecting utilities and
ratepayers from large increases in cost from month to month. The
uptake of renewable energy for power generation can be a new
opportunity for utilities to avoid high and variable fuel costs while
also reducing their emissions and increasing resilience.

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