EVALUATION OF A PROPOSAL FOR GREEN POWER PRICE INSURANCE

by Rober C. Means, LL.B., S.J.D.1

The nascent green power market faces a constraint: customers will sign only short-term purchase contracts, yet renewable energy project developers require long-term purchase commitments to obtain financing. This paper concludes that green power “price insurance” can address this asymmetry, offering great potential to stimulate a market at a low and acceptable level of financial risk.
For a copy of the proposal, contact the Renewable Energy Alliance (REA) at http://www.realliance.org/insurance/index.html

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