Suggest hedging of volumetric risk
via capacity options, swing contracts, weather derivatives
and other financial instrument, taking into consideration
factors such as:
•
Weather, i.e. Load
•
Economic growth
•
Power prices
o
Enables peak demand correlations with
price spike simulation
o
Allows non-linear correlation for larger portfolio,
i.e. for prices that are sensitive to regional loads
in a non-linear manner
