Bet And Wind

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Bet And Wind

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Bet And Wind

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However, given the heterogeneity of wind producing sites and the specifics of each asset park or class, a lot of issues arise around the applicability of a single standard product as a hedge.

Potentially significant basis risk might cause both cashflow implications and inadmissibility of the hedge for accounting treatment purposes.

Here is a list of some sources of risk:. As a result, the hedge instrument might result in a payoff from the buyer hedger to the seller dealer, exchange not compensated by higher revenues from high wind output.

A related issue is how to calibrate onshore met data to offshore wind conditions, as these might differ significantly.

While turbine manufacturers guarantee a certain technical availability, any unexpected outages not covered by the insurance might trigger payments for the derivative while not generating actual revenues or compensations.

As the load factor is the main determinant of the Wind Power Index, the latter will be unsuitable to mitigate this kind of market price risk.

In this case, the best hedge would be to pick a location which best matches the wind output profile on a country level.

Based on the contract details outlined by EEX, wind futures will probably be more suitable for market participants who are not wind asset owners, but are somehow impacted by the wind generation be it price or volume effects.

Taking the complexity of calibrating futures to serve hedging purposes into account, a logical question arises whether entering into such contracts constitutes a well-informed bet rather than a hedge for future cash flows?

It can also happen during smoking or when swallowing saliva. Larger amounts can be swallowed when you eat quickly, gulp down a drink or chew gum.

The swallowed air goes down into the gullet the oesophagus. If you are sitting up, the air tends to go back up the oesophagus and escapes again through the mouth in the process of belching.

If you are lying flat, the air tends to pass downwards causing gas in the stomach. This can result in bloating after eating and a hard, swollen tummy.

The gas eventually enters the small bowel small intestine and escapes through the back passage anus. People often refer to this as 'farting' or, more politely, 'passing wind' or flatulence.

Gas can also be produced due to germs bacteria acting on partially digested food in the gut. This is more likely to happen with some foods than others.

Broccoli, baked beans and Brussels sprouts are well-known culprits. The number of germs in the bowel also has an effect on the volume of gas produced.

The gas that is made is mainly composed of carbon dioxide, hydrogen and methane. It may contain traces of a chemical called sulfur.

This is responsible for the unpleasant smell experienced when you pass wind through the back passage. Abdominal bloating is the term used when the tummy feels blown out, tight or full of gas.

It results in a swollen stomach and the waistband of a skirt or a pair of trousers may feel uncomfortable.

You may experience crampy tummy pains. Gas-related symptoms include burping excessively, passing a lot of wind from the back passage, crampy stomach pains and a bloated belly.

Gas sometimes settles in the curves of the large bowel large intestine under the liver or spleen. This can cause pain in the upper right or upper left areas of your tummy.

Most people who are bothered by these types of symptoms do not actually produce more gas than usual, they are just more sensitive to normal amounts.

However, it is now considered that some patients with irritable bowel syndrome do produce larger than normal volumes of gas. Irritable bowel syndrome is a condition in which bouts of tummy pain are associated with bloating and changes in bowel habit such as constipation and diarrhoea.

See the separate leaflet called Irritable Bowel Syndrome. Just to complicate matters further, the amount of bloating does not relate to the seriousness of the cause.

People with irritable bowel syndrome may complain of severe bloating, whilst in those with coeliac disease the bloating may be mild, moderate or severe.

Everybody has gas-related symptoms from time to time. In most cases, this is part of the natural working of the body and the symptoms soon pass.

Some people complain they are feeling bloated all the time. As mentioned above, people are occasionally sensitive to normal amounts of gas in the tummy.

The reasons for this are not entirely clear. This is called aerophagia. You may not be aware of it but you may be swallowing air frequently or in large amounts.

This often happens in people who are under stress. It can be aggravated by chewing gum and smoking. Usually, air swallowed in this way passes into the gullet oesophagus and down into the stomach.

However, sometimes air is sucked into the back of the throat the pharynx and is burped out before it reaches the oesophagus. This is known as supragastric belching.

Some people swallow air deliberately to cause belching, as they find this helps to relieve symptoms of indigestion.

Lactose intolerance happens when your body has difficulty digesting lactose. Lactose is present in milk and foods which are made with milk.

Lactose intolerance causes diarrhoea, tummy pains and bloating. See the separate leaflet called Lactose Intolerance. Intolerance to sugars in certain foods can occur.

Fructose intolerance is the most common. Foods high in fructose include dried fruit, honey, sucrose, onions and artichokes. Sorbitol is another sugar to which you can be intolerant.

It is found in chewing gum and 'sugar-free' sweets. Check the leaflet of any medicines you are taking, as wind, gas or bloating can be side-effects.

Metformin a medicine for diabetes and lactulose a laxative are well known to cause these symptoms. Antacids such as magnesium trisilicate help to combat indigestion but they can increase the amount of carbon dioxide produced in the stomach, and aggravate belching.

Most people with gas-related symptoms have increased sensitivity to gas or have one of the causes of increased gas production mentioned above. However, occasionally these symptoms can be caused by diseases of the bowel.

Sometimes, the illness can be short-lived. For example, acute gastroenteritis also known as a 'tummy bug' , often caused by infection with a virus, can result in a short-term condition associated with increased gas.

Occasionally, gas-related symptoms can be features of long-term diseases. All of them can cause at least one gas-related symptom ie tummy pain, excess wind or bloating.

Coeliac disease Coeliac disease is caused by intolerance to a protein called gluten which is found in certain foods containing wheat, barley and rye.

It principally affects the part of the gut called the small intestine. It can occur at any age. Symptoms are relieved by avoiding gluten-containing foods.

See the separate leaflet called Coeliac Disease. Inflammatory bowel diseases The most common inflammatory bowel diseases are ulcerative colitis and Crohn's disease.

Ulcerative colitis is a disease in which inflammation develops in the colon and the rectum the large intestine. Crohn's disease is a condition that causes inflammation of the wall of the gut gastrointestinal tract.

Any part of the gut can be affected. The main symptoms of inflammatory bowel diseases are tummy pains and diarrhoea, but bloating and other gas-related symptoms can develop.

The causes of ulcerative colitis and Crohn's disease and ulcerative colitis are not known. However, both conditions have genetic factors and it is thought that people who develop inflammatory bowel diseases are prone to react to infection with germs by producing an immune reaction in their bowel lining.

Diverticulitis Diverticulitis occurs when small pouches in the wall of the large bowel 'diverticula' become infected.

Short bowel syndrome Short bowel syndrome can be a complication of bowel surgery. If more than half the small bowel is removed during surgery this can cause difficulties in food absorption.

Small intestinal bacterial overgrowth Small intestinal bacterial overgrowth is a poorly understood condition which is caused by an overgrowth of germs in the small intestine.

It can be an aftermath of bowel surgery, and also occurs more frequently in people with diabetes, inflammatory diseases of the bowel and diverticulosis.

It may be associated with irritable bowel syndrome and can cause the same sort of symptoms, particularly bloating.

Indeed, it is thought that some cases of irritable bowel syndrome may be caused by small intestinal bacterial overgrowth.

Small intestinal bacterial overgrowth is sometimes treated with antibiotics such as metronidazole. Scleroderma Scleroderma is a condition which causes thickening of the skin and sometimes the internal organs.

When the gut is affected it can cause problems in stomach emptying and irregularity of bowel movement. This can lead to bloating, constipation and diarrhoea.

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Most people who are bothered by these types of symptoms do not actually produce more gas than usual, they are just more sensitive to normal amounts.

However, it is now considered that some patients with irritable bowel syndrome do produce larger than normal volumes of gas.

Irritable bowel syndrome is a condition in which bouts of tummy pain are associated with bloating and changes in bowel habit such as constipation and diarrhoea.

See the separate leaflet called Irritable Bowel Syndrome. Just to complicate matters further, the amount of bloating does not relate to the seriousness of the cause.

People with irritable bowel syndrome may complain of severe bloating, whilst in those with coeliac disease the bloating may be mild, moderate or severe.

Everybody has gas-related symptoms from time to time. In most cases, this is part of the natural working of the body and the symptoms soon pass.

Some people complain they are feeling bloated all the time. As mentioned above, people are occasionally sensitive to normal amounts of gas in the tummy.

The reasons for this are not entirely clear. This is called aerophagia. You may not be aware of it but you may be swallowing air frequently or in large amounts.

This often happens in people who are under stress. It can be aggravated by chewing gum and smoking. Usually, air swallowed in this way passes into the gullet oesophagus and down into the stomach.

However, sometimes air is sucked into the back of the throat the pharynx and is burped out before it reaches the oesophagus. This is known as supragastric belching.

Some people swallow air deliberately to cause belching, as they find this helps to relieve symptoms of indigestion.

Lactose intolerance happens when your body has difficulty digesting lactose. Lactose is present in milk and foods which are made with milk. Lactose intolerance causes diarrhoea, tummy pains and bloating.

See the separate leaflet called Lactose Intolerance. Intolerance to sugars in certain foods can occur. Fructose intolerance is the most common.

Foods high in fructose include dried fruit, honey, sucrose, onions and artichokes. Sorbitol is another sugar to which you can be intolerant. It is found in chewing gum and 'sugar-free' sweets.

Check the leaflet of any medicines you are taking, as wind, gas or bloating can be side-effects. Metformin a medicine for diabetes and lactulose a laxative are well known to cause these symptoms.

Antacids such as magnesium trisilicate help to combat indigestion but they can increase the amount of carbon dioxide produced in the stomach, and aggravate belching.

Most people with gas-related symptoms have increased sensitivity to gas or have one of the causes of increased gas production mentioned above.

However, occasionally these symptoms can be caused by diseases of the bowel. Sometimes, the illness can be short-lived.

For example, acute gastroenteritis also known as a 'tummy bug' , often caused by infection with a virus, can result in a short-term condition associated with increased gas.

Occasionally, gas-related symptoms can be features of long-term diseases. All of them can cause at least one gas-related symptom ie tummy pain, excess wind or bloating.

Coeliac disease Coeliac disease is caused by intolerance to a protein called gluten which is found in certain foods containing wheat, barley and rye.

It principally affects the part of the gut called the small intestine. It can occur at any age. Symptoms are relieved by avoiding gluten-containing foods.

See the separate leaflet called Coeliac Disease. Inflammatory bowel diseases The most common inflammatory bowel diseases are ulcerative colitis and Crohn's disease.

Ulcerative colitis is a disease in which inflammation develops in the colon and the rectum the large intestine.

Crohn's disease is a condition that causes inflammation of the wall of the gut gastrointestinal tract.

Any part of the gut can be affected. The main symptoms of inflammatory bowel diseases are tummy pains and diarrhoea, but bloating and other gas-related symptoms can develop.

The causes of ulcerative colitis and Crohn's disease and ulcerative colitis are not known. However, both conditions have genetic factors and it is thought that people who develop inflammatory bowel diseases are prone to react to infection with germs by producing an immune reaction in their bowel lining.

Diverticulitis Diverticulitis occurs when small pouches in the wall of the large bowel 'diverticula' become infected. Short bowel syndrome Short bowel syndrome can be a complication of bowel surgery.

If more than half the small bowel is removed during surgery this can cause difficulties in food absorption.

Small intestinal bacterial overgrowth Small intestinal bacterial overgrowth is a poorly understood condition which is caused by an overgrowth of germs in the small intestine.

It can be an aftermath of bowel surgery, and also occurs more frequently in people with diabetes, inflammatory diseases of the bowel and diverticulosis.

However, given the heterogeneity of wind producing sites and the specifics of each asset park or class, a lot of issues arise around the applicability of a single standard product as a hedge.

Potentially significant basis risk might cause both cashflow implications and inadmissibility of the hedge for accounting treatment purposes.

Here is a list of some sources of risk:. As a result, the hedge instrument might result in a payoff from the buyer hedger to the seller dealer, exchange not compensated by higher revenues from high wind output.

A related issue is how to calibrate onshore met data to offshore wind conditions, as these might differ significantly. While turbine manufacturers guarantee a certain technical availability, any unexpected outages not covered by the insurance might trigger payments for the derivative while not generating actual revenues or compensations.

As the load factor is the main determinant of the Wind Power Index, the latter will be unsuitable to mitigate this kind of market price risk.

Such gains are reflected in falling costs to produce offshore wind around the world, as commitments to cut carbon emissions leads to policies that encourage competition.

Subsidies such as the guaranteed electricity prices in the UK have been key, giving certainty to investors about returns and therefore lowering the cost of finance.

Financing costs account for 35pc to 50pc of overall generation cost, according to the International Energy Agency IEA. Efficiency has also been fuelled by huge advances on turbine height.

Developers have competed to build taller, wider turbines that can capture more wind per rotation and better wind speeds.

From the first wind turbine in the US in the late 19th century, which reportedly had a 12kW capacity and a 17m rotor span, Siemens Gamesa earlier this year unveiled a turbine with 14MW capacity and rotor blades spanning m.

Now developers are competing to build turbines on floating platforms far out in the ocean.

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