129 - Energy Risk Management made Simple for Insiders
Insider's Guide to Energy
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How to Manage Uncertainty in Renewable Energy Positions
The idea of risk and risk management is that not all uncertainty is bad, right? If it were, there'd be nothing that we could do with it. But there's offsetting uncertainty, right? When you look at a corporate customer who runs a data center, there's all kinds of uncertainty in the cost of the power they're going to have to pay just by their native position. They've already got uncertainty in their portfolio. So if you can sign contracts that offset that uncertainty, those contracts themselves has a lot of risk. That's an offsetting risk to a large extent, right? It's an uncertainty that kind of cancels the uncertainty in the native portfolio.
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