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CME plans Wind Power futures and options based on Vaisala indices

Contracts are scheduled for launch in the fourth quarter of 2026, subject to regulatory review, and will be financially settled using independent Vaisala Xweather datasets.

Reported · Written up by our desk · Energy Transition

CME Group said it plans to expand its weather risk transfer and hedging lineup with Wind Power futures and options that will be based on indices from Vaisala Xweather. Pending regulatory review, the contracts are expected to launch in the fourth quarter of 2026.

The exchange said the financially settled wind contracts will track and settle against independent datasets provided by Vaisala Xweather, using models of projected wind power output at designated locations. CME said the indices are designed to allow region-specific contracts tied to major wind power producing areas.

For launch, CME listed five contracts, including Wind Power Germany ERA5 100m 2019 Index and Wind Power Germany ERA5 100m 2022 B Index, plus Wind Power UK ERA5 100m 2022 Index, Wind Power Australia VIC 2024-06 Index, and Wind Power U.S. Texas ERCOT ERA5 100m 2022 Index.

CME said the contracts are intended to help market participants manage risk tied to fluctuating wind generation, noting wind is a key variable in power output and that hedging weather variables can help mitigate volatility. Artemis also quoted CME’s Peter Keavey saying the products would offer an exchange-cleared way to manage exposure on the same platform as natural gas, power, and weather, and Vaisala’s David Whitehead calling the effort an extension of Vaisala’s temperature-related datasets.

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