Power Dispatch: Managing Weather Risk - The Rise of Weather Derivatives

Power Dispatch: Managing Weather Risk - The Rise of Weather Derivatives

As renewable generation continues to expand and extreme weather phenomena become more frequent, managing weather risk is becoming increasingly important for energy companies. Conventional hedging strategies can help manage price exposure, but they do not always address the financial impact of unexpected weather patterns on demand, generation or trading positions.

As a result, weather derivatives are gaining greater attention. In this episode, Argus European Electricity Editor Helen Senior and Deputy Editor Apostolos Tsarikas talk with Pierre Buisson, Senior Weather and Energy Structurer, and Theresa Kammel, Weather Trader and Originator at Munich Re, to discuss how these products work and where the market is headed.

Listen to discover key insights on:

  • How are weather derivatives used to manage and hedge weather risk?
  • Who are the biggest market players and which products are the most liquid?
  • How is the market expected to evolve in the coming years?

This podcast was created using data and insights from the Argus European Electricity service

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