Energy

Gas and electricity consumption is strongly influenced by weather conditions.

Fuel and electricity is used to a large extent for space heating or cooling. Hence, the demand for energy varies according to temperature.

Traditional energy companies are financially exposed during warm winters or cool summers due to decreased energy demand. Alternative sources of energy such as hydroplants or wind farms are also exposed when drought or lack of wind reduce energy production.

White Paper: Disclosure of Weather Risks of European Utilities Jan 2010
White Paper: Weather Risk Management, A challenge for the energy industry

Example: Windpower Producer
Example: Gas distributor
Example: Hydropower producer
Example: Wood pellet producer
Example: Solar power producer