Applied risk management series: wind firming deal analysis

Wind firming deals claim to address intermittency and stabilise renewable generator cashflow, but how effective are they?

Since the establishment of the Kyoto protocol in 1997, there has been a global shift in government policy to support renewable power generation. Between 2000 and the end of 2017, global wind generation capacity increased by a multiple of 30, from 17,400 megawatts (MW) to 539 gigawatts, according to data from the World Energy Council. This has left many power market players around the world facing the challenge of intermittency. The level of renewable generation is often volatile and difficult to