These contracts are tuned to the risk preferences and desired commodity exposures of each individual counterparty.
Virtual power plants (VPPs) are a form of power delivery contract. They put the buyer into the position of optimizing a fictitious power plant without the technical risks and operational procedures involved in running a real-life plant. VPPs are an exquisite means of balancing out the fuel exposure of a company’s portfolio and of extracting value through superior optimization of the plant.
In the same way, gas storage products may replicate a physical gas storage position while being handled as a pure trading product. This allows for flexibly injecting and withdrawing gas as the user needs it or finds it most profitable.