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[Music] weve talked before about PPAs and how they shift risk but dont eliminate risk PPA is move risk around between parties the risk comes from not knowing the future we dont eliminate the risk of not knowing the future by writing a PPA we simply move the risk from in the case of PPAs from the generator partially over to the dista and that just calm accepts some of the risk and that allows the generator to get financing for the plant so risk can be reduced for providing opportunities for hedging risk and for spreading risk and this provides another rationale for exchange trading some docHub share of electricity that is sold if we if we have a docHub share of electricity traded in markets then there will be opportunities for buyers and sellers to hedge risks and to spread risk around across counterparties in a way that can make the risk less costly one example of how we can mix ppas in with exchange trading is using contracts for differences as a adjunct to or replacement
