We present a new model for pricing electricity swaps. Two general factors affect all contracts but unique risk factors affect each contract. General factors are average swap prices and deterministic trend-seasonal components, and unique factors are forward premiums. Innovations follow MNIG...

Power Purchase Agreements (PPA) play a significant role in deploying renewable energy, a crucial development to meet climate change challenges. Participants set the PPA price through opaque negotiation processes. We present novel, replicable, and transparent financial models to compute the PPA...

This paper deduces the optimal futures position for hedging joint price and production risks of a renewable Power Purchase Agreement. We develop static and dynamic closed-form and numerical copula-based hedging formulas and test the models employing exchange-traded electricity futures contracts...