Wind Power Futures Trading ‘Most Important Thing in Years’ for Renewable Energy (Part 2 of 3)
Posted: August 23, 2007
It didn’t take long for the jury foreman to reach his decision. According to Michael Eckhart, president of the Washington-based American Council on Renewable Energy (ACORE), the advent of wind power futures trading is the “most important thing in years” to happen to the development of renewable energy sources.
As EnergyTechStocks.com reported yesterday, wind power futures are scheduled to begin trading tomorrow – Friday – on the U.S. Futures Exchange. Seven individual contracts will be traded, one each for five regions in Texas and two in New York state, that have significant wind power generation. Investors and speculators will make or lose money based on their ability to gauge whether in coming months the wind will blow at a higher or lower speed than the 20-year historical average.
Eckhart, whose nonprofit organization serves as an umbrella group for all forms of renewable energy, said in an interview with EnergyTechStocks.com that up until now, a weak link in the development of green power sources has been that the electricity they generate cannot be stored. He said that wind power futures will serve as a financial substitute for storage, giving this green power source firmer financial footing as it competes against more traditional energy sources such as coal and natural gas.
Eckhart said that eventually a futures market for solar power should also develop, although he added that the financial community’s acceptance of solar power appears to be roughly six to eight years behind that of wind, which he said is now mainstream. Eckhart also eventually expects other green energy financial markets to develop, such as for controlling carbon dioxide emissions.
Asked how he sees the wind power futures market developing, Eckhart said, “I think it’s going to be big.” He explained that he expects the more sophisticated financial players to learn how to play the market.
Click Here For Part 1 of 3 — First Renewable Energy Futures, Starts Trading