If you go into the websites that show how the electricity spot market in Northern slsp Europe evolv

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We have heard about the toxic swap agreements. Many a cooperative housing association members have seen their hard-banked or hard mortgaged deposits in a cooperative housing society disappear because of a swap agreement with a bank that promised gold and green forests.
A loan in own housing association was exchanged - swapped with an agreement slsp on fixed rate over a longer period. Since then mortgage slsp rates fell, the loan was too expensive, and the market value of this inconvertible loans was far above par. This went equity in the housing cooperative slsp lost.
But there is a swap agreement in cost and scale beyond all cooperative associations swap agreements. It is an agreement that binds an entire country's population at a premium on a product during periods when the market price of the product may fall with incalculable economic consequences for a whole people.
This swap agreement are the agreements on fixed electricity prices, the Danish Parliament on behalf of the population are committed to pay for wind energy from various projects. The most expensive is probably the swap agreement for the wind farm at Anholt. A 20-year agreement, which we Danes - regardless of how electricity price evolves - will pay a very high price.
First and foremost, there is the fundamental problem that wind comes, as the wind blows. Quite literally. Therefore, suppliers of wind energy not sell wind energy at fixed long-term contracts with a guarantee to deliver a certain amount of megawatts around the clock and throughout the year, such as the Swedish akraftværker can sell and sell energy to the Danes. Wind turbine slsp owners can not sit with a control panel and screw up and down the supply in line with demand - and hence the cost - of electricity, such as the Norwegian (and Swedish) hydroelectric power.
I have a brother and sister-up at Great Moore. They have approximately 20 years had a fairly large Vestas wind turbine. When the wind really blows, what do they do? Jo - they stop their windmill. slsp But why do that? Yes, they have passed the time when their swap arrangement was made for. They will no longer have a guaranteed minimum price for the electricity they sell. They can now only sell power at market prices. And when it is windy, they actually pay to get rid of power. When it is windy, wind energy, in other words worthless.
If you go into the websites that show how the electricity spot market in Northern slsp Europe evolves, confirmed my brother in law and husband's sister story. When it is windy, producing the Danish wind turbines as much electricity as we Danes consumer slsp - how wonderful - or?
Even the most fanatical supporter wind energy will, like all of us, of course also like to have power when it is not blowing, and therefore slsp the Danish energy companies have to buy stable electricity supplies on long-term contracts elsewhere. Almost half of Danish electricity consumption, which originates in stable Swedish akraftværker.
Therefore, the Danish consumers do not purchase all the winds energy produced when it is windy and are therefore sold in the Nordic spot market. Akraftværkerne runs quietly on with constant production, so those willing and able to Swedes not just slow down when it is windy in Denmark.
But the Norwegians (and Swedes) with their many hydroelectric plants, they can close for turbines and buy Danish wind when it blows. But it's a buyer's market slsp - as you can see on Web pages with spot market prices: Nord Pool Spot and EMD.
So when the true fan and the spot price falls in the electricity market, screws Norwegians slsp down the turbines and decreases Danish wind energy at very low or even negative rates. Yes sometimes we pay residents' electricity supply companies Norwegians ditto for receiving our wind energy.
And when there is no wind in Denmark, and we can not cope alone with the flow, our utilities have purchased from the Swedish akraftværker, and the power the Danish fossil power plants produce so opens the Norwegians (and Swedes) for turbines and sells us the power they used when they got our wind given away in the storm.
Dong, including Goldman Sachs, which owns Anholt-turbines, may be indifferent, as long as their swap runs. For whether they almost need to give power to the Norwegians, we pay Danes via our swap agreement Dong, so they get around 1 kr. Per. kWh. And the more windmills we put up, the more expensive the swap agreement, and the more rubs Norwegians his hands.
As to the other. The market risk. Market risk is that the energy market can change. Cooperative associations established swap lines to insure themselves against rising interest rates. But as interest rates fell, the problem.
Just as with our giant swap