The Chicago Mercantile Exchange is preparing to introduce wind derivatives to help market participants manage risks associated with wind power generation. A person familiar with the matter indicates these products will cover the US, Europe, and Australia. This expansion comes as renewable energy takes a larger share of global power generation.

Energy producers and utilities often face volatility when wind speeds fluctuate, affecting their output and revenue. By offering these derivatives, the exchange provides a mechanism to hedge against these weather-driven risks. This move allows businesses to lock in prices or protect against low-wind periods across three continents.

Expanding into these specific regions targets the most active renewable energy markets. The move reflects a shift in how power generation is managed as wind becomes a staple of the energy mix. These new instruments provide a standardized way for firms to mitigate the financial uncertainty of wind-based power production.