2025, Vol. 6, Issue 2, Part D
Modeling hedging of renewable energy price fluctuations: Risk management strategies with forward contracts, futures contracts, options, and energy swaps
Author(s): Isaac M Mankilik and Silas A Ihedioha
Abstract: This paper explores a scientific approach using the technology of modeling and analysis of risk management strategies for renewable energy price fluctuations to achieve economic growth. It investigates the application of forward contracts, futures contracts, options, and energy swaps in mitigating the financial risks associated with price volatility in renewable energy markets. The paper presents mathematical formulations for each of these instruments, provides solutions, and offers a comprehensive analysis of their effectiveness in hedging risk. Numerical simulations demonstrate the application of these models in real-world scenarios, highlighting their role in stabilizing energy markets with positive consequential economic growth.
DOI: https://doi.org/10.22271/math.2025.v6.i2d.270
Pages: 703-713 | Views: 187 | Downloads: 94
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How to cite this article:
Isaac M Mankilik and Silas A Ihedioha. Modeling hedging of renewable energy price fluctuations: Risk management strategies with forward contracts, futures contracts, options, and energy swaps. Journal of Mathematical Problems, Equations and Statistics. 2025; 6(2): 703-713. DOI: 10.22271/math.2025.v6.i2d.270
