857 Price Protection Programs

Large industrial electricity consumers are interested in protecting themselves from unanticipated price spikes. Their goal is to fix electricity acquisition costs, which are variable, to lock in future profits for their products. A swap agreement puts production costs under control and locks in price margins. The financial intermediary takes positions on guaranteed differentials between natural gas and electricity to hedge the risk it has assumed. Since natural gas is by far the largest input to distributed power generation, it also makes it an effective hedge for electricity transactions at the present time because there is little liquidity for electricity futures.

Solar Stirling Engine Basics Explained

Solar Stirling Engine Basics Explained

The solar Stirling engine is progressively becoming a viable alternative to solar panels for its higher efficiency. Stirling engines might be the best way to harvest the power provided by the sun. This is an easy-to-understand explanation of how Stirling engines work, the different types, and why they are more efficient than steam engines.

Get My Free Ebook


Post a comment