Hedging Fundamentals Part 4

Electricity Contract Price Increases?

Electricity contract prices have risen, and could rise further. Every month we publish the electricity contract index, but I thought it's instructive to delve deeper into the underlying contract data.

Hedging Fundamentals Part 3

In New Zealand the contract-for-differences (aka CFD) is the most common off-exchange method for hedging the price of electricity traded on the wholesale market for a specified quantity and time period. In other words, the CFD is a fundamental tool in the hedging toolbox.

Who's setting the Gas Price?

"Electricity prices are high at present. Gas prices are also high. Who’s setting these prices?”

Energy Link Electricity Contract Indexes April 2021, Issue 145

There were 8 contracts traded that were eligible to include in the index calculations this month, but the last of these was on the 6th April, and since then nothing has traded in the OTC market (or at least not that meets the index criteria for size and duration).

Levelised Cost of Energy - What is it?

“We’re about to launch a new, free tool on our web site. It calculates the LCOE of your generation project. But what the f*&% is it?"

Hedging Fundamentals Part 2

What's behind the high spot prices?

What’s behind the high spot prices? We take a more detailed look at who is setting prices, when and why.

Energy Link Contract Indexes March 2021, Issue 144

Hedging Fundamentals Part 1

This blog post breakdown the fundamentals of hedging and provides an answer to the question "What is a hedge?".