QUANTIFYING THE VALUE THAT WIND POWER PROVIDES AS A HEDGE AGAINST VOLATILE NATURAL GAS PRICES

摘要: Advocates of renewable energy have long argued that wind power and other technologies can mitigate fuel price risk within a resource portfolio. Such arguments--made with renewed vigor in the wake unprecedented natural gas volatility during winter 2000/2001--have mostly been qualitative nature, however, few attempts to actually quantify stability benefit renewables provide. This paper this by equating it cost achieving through means, particularly gas-based financial derivatives (futures swaps). We find over past two years, consumers had pay premium roughly 0.50 cents/kWh expected spot prices lock for next 10 years. incremental is potentially large enough tip scales away from new investments gasfired generation favor technologies.