These contracts are tuned to the risk preferences and desired commodity exposures of each individual counterparty.
VPPs are a form of power delivery contract. They provide the buyer with the option to optimize 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 according to the user’s needs or to optimize commercially.