Renewable energy is a growing market that already has a mechanism for separating the renewable ‘credit’ from the electricity itself. These credits are traded, even across borders. High time for a futures market? Siân Williams investigates the prospects.
Environment-conscious consumers will pay extra for electricity that they believe to be green – and governments increasingly insist that some of the power used or sold in their countries comes from renewable sources.
This should mean renewable energy is more valuable than power generated from coal or gas. So how is that reflected in the way the power market works – and should there be a futures market in renewable energy, so players can hedge and bet on the cost?
There are clear parallels between the emerging system for encouraging renewable energy and the nascent controls on carbon emissions. In fact, the renewable energy initiatives predate many of...