Welcome to the new version of European Tribune. It's just a new layout, so everything should work as before - please report bugs here.
Display:
Given that it takes at least two years from the time you start committing serious money to a wind farm and until it goes online, this means that you have to be able to predict gas prices 2-4 years into the future. If you can do that, you can make better money playing liar's poker in the futures market.

The point of the futures market is that if you're in the wind business it shouldn't matter to you what the price of gas is since you can hedge it. In other words, at 2-4 years ahead you can lock in a price for gas if you need to.

Also, it doesn't matter what your view of gas prices is, since the only price you can lock is the futures price.

At least that's the theory, and I wouldn't be surprised if it didn't work in practice. I'd appreciate hearing from Jerome about how it actually works in practice.

So, in what may be my last act of "advising", I'll advise you to cut the jargon. -- My old PhD advisor, to me, 26/2/11

by Migeru (migeru at eurotrib dot com) on Wed Mar 30th, 2011 at 02:36:47 AM EST
[ Parent ]

Others have rated this comment as follows:

Display:

Top Diaries

Smudges

by Oui - Sep 23
9 comments

2034

by Frank Schnittger - Sep 10
5 comments

Faux Accompli

by Cat - Sep 14
14 comments

Civic Self Defense Resources

by gmoke - Sep 19
1 comment

Recent Diaries

Smudges

by Oui - Sep 23
9 comments

Civic Self Defense Resources

by gmoke - Sep 19
1 comment

Faux Accompli

by Cat - Sep 14
14 comments

2034

by Frank Schnittger - Sep 10
5 comments

The Focus Group

by THE Twank - Aug 31
10 comments

Labour grows up?

by Frank Schnittger - Aug 27
57 comments

Exhibit 1

by Cat - Aug 22
22 comments

EU Position Papers

by Cat - Aug 22
25 comments

PACER

by Cat - Aug 18
5 comments

More Diaries...

Occasional Series