Managing Natural Gas Price Volatility and Escalation: The Value of Renewable Energy

Publication Type

Conference Paper

Date Published

03/2004

Authors

Abstract

Overview Renewable energy (RE) provides a hedge against volatile and escalating gas prices:

  • Mitigates Fuel Price Risk: Long-term contracts for RE are typically offered on a fixed-price basis, unlike gas-fired generation contracts
  • Reduces Natural Gas Prices: Increased RE reduces natural gas demand, and consequently puts downward pressure on gas prices
  • Presentation includes an overview of natural gas price uncertainty, and discusses research on both of these possible benefits

Conference Name

NEMS/AEO 2004 Conference Washington, D.C. March 23, 2004

Year of Publication

2004

Publisher

LBNL

Conference Location

Washington, D.C.