European Utilities Rush to Hedge Against Acute Wind Drought

After spending about $380 billion over the past decade to nearly double wind power capacity in Europe, utilities are now turning to an obscure and little-known market to protect themselves against a prolonged bout of calm weather.

The wind drought is a reminder that no matter how much you build, actual generation will always be dictated by how much it blows. Wind speeds across Europe during February to April likely had their biggest drop from long-term averages since 1940, according to data from the University of Maine’s Climate Change Institute.