Increase Text Size
Decrease Text Size
Email This Story
Share This Story
Reader Comments (0)
Add to Bookmarks
Printer Friendly Version
U.S. Futures Exchange (USFE) announced June 28 that it will list futures contracts on NORDIX Financial Wind Indexes, created by Weather Bid, LLC, that measure deviations from average wind speeds used in wind power generation. The contracts provide a financial hedging vehicle for wind resource owners, developers, financiers and consumers of wind energy and will begin trading this summer.
"It's expected that the U.S. wind market will grow by more than 8,000 megawatts over the next two years. The exchange environment offers numerous benefits to customers who already trade over the counter contracts based on our indexes."
-- Elliot Stern, Weather Bid, president
NORDIX Financial Wind Indexes are benchmarks for wind variability. USFE's futures contracts are the first listed exchange products designed to reflect the needs of the greater renewable energy community.
"As generation capacity of renewable energy continues to grow exponentially, so has the need for standardized hedging tools similar to those found in traditional energy markets," said Satish Nandapurkar, CEO of USFE. "We are pleased to partner with Weather Bid, which has created valuable indexes to promote the growth and viability of wind power as a clean and diversified energy source."
The NORDIX Financial Wind Indexes are composed of deviations from 20-year historical wind speed averages compared with present daily figures. USFE will initially list seven index futures contracts based on two wind regions in New York and five wind regions in Texas as defined by the National Oceanic and Atmospheric Administration's (NOAA) National Center for Environmental Prediction division. The futures contracts will be settled monthly.
"It's expected that the U.S. wind market will grow by more than 8,000 megawatts over the next two years," said Elliot Stern, president of Weather Bid. "The exchange environment offers numerous benefits to customers who already trade over the counter contracts based on our indexes."
USFE and Weather Bid also plan to develop a comprehensive suite of futures contracts for the benefit of renewable energy, including hydro, solar, geothermal and biomass, and will work closely with renewable energy advocacy groups to promote the new contracts.
Previous Article
