Abstract
With the further development of power market reform, the demand for energy trading entities to avoid the risk of electricity price is becoming more and more prominent. This paper uses the method of minimizing the variance of the portfolio return rate combined with the electricity futures price data from the European Energy Exchange to estimate the optimal hedging ratio and perform the residual test. Finally, the decision of power producers to use the power futures hedging strategy to avoid the risk of spot price fluctuations will be discussed.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
More From: IOP Conference Series: Earth and Environmental Science
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.