Energy sources derived from nature, such as wind and solar, face inconsistency challenges leading to fluctuations in power supply and thus, volatile pricing. Strategies to neutralize these volatile prices are being explored.

The accelerating race to reduce carbon emissions, with net-zero targets approaching, is growing more urgent. Renewable energy plays a crucial role in this effort, but the inconsistent availability of resources presents challenges...

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2025 September 15 . 2:50 AM

1 min read

Intermittency issues in green energy: strategies for stabilizing power price fluctuations

Energy sources derived from nature, such as wind and solar, face inconsistency challenges leading to fluctuations in power supply and thus, volatile pricing. Strategies to neutralize these volatile prices are being explored.

In the ever-evolving landscape of the renewable energy sector, managing pricing volatility and associated risks is a constant challenge. One solution that is gaining traction is partnering with banks that specialize in commodities and have a strong understanding of the market.

These banks, acting as aggregators, can structure hedging solutions that allow clients to benefit from intraday volatility. Major players in this field include JPMorgan Chase, Goldman Sachs, Morgan Stanley, Citi, and Barclays, all of whom offer specialized commodity offerings and flexible risk management solutions for energy market price volatility.

For solar producers, who face high exposure to intermittency, partnering with such a bank can expand the range of hedging options available. By integrating or combining these solutions with storage solutions, solar operators can buy and store energy when prices are low and sell when prices rise, thus benefiting from intra-day pricing fluctuations.

However, it's important to note that technology and infrastructure are not yet able to offer solutions at scale for managing risks associated with renewable energy. This is where a diversified, flexible portfolio comes into play. A diversified portfolio is crucial for market players in the renewables sector to manage fluctuating supply and demand and pricing volatility.

In conclusion, as the renewables sector continues to grow, so too does the need for effective risk management strategies. Partnering with banks specializing in commodities and hedging solutions can provide a valuable tool in this regard, enabling renewable energy producers to navigate the volatile market and secure their long-term success.