electricity production using the power derivatives available at NASDAQ OMX Commodities. In their hedging policy, these companies … that the derivative cashflows constitute substantial profits for these companies. Furthermore, hedging contributes to …We analyze risk management trends in electricity commodity markets using the production and transaction data and …

risk characteristics. Previous research has primarily considered dynamic hedging; however, static hedging is the common … choice among hydropower producers because of its simplicity. Our contribution is to evaluate such hedging out of sample. The … hedging strategies we analyze include a natural hedge, which means no hedging, and output from an optimization model that we …