Mercuria CSR Report 2020 - Flipbook - Page 35
The forward markets also face challenges in
how to price fair value for contracts since the
fast-moving pace of change makes looking at
historical price out turns less and less relevant the
further back you go.
Mercuria has an important part to play in helping
the markets function properly during these times
of change. Conventional generators, renewable
energy operators and power suppliers all have
volumes to hedge in markets that face increasing
uncertainty. We can manage this risk and find ways
to mitigate it using other markets, commodities or
time periods as we look for pricing discrepancies
across the energy complex.
Given that changes in gas, LNG, coal and emissions
markets all impact the price of power (and power
fundamentals impact these markets too), it is
imperative that these markets be commercially
viewed as a whole.
There certainly remains much volatility and
opportunity ahead as the green energy transition
continues.
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