Published Paper Details:

A Environmental protection is an important issue in 2 recent decades, and renewable energy is an ideal solution for eco-friendly power generation. Solar-power generation is a popular renewable energy with low cost and small environmental footprint, which leads to exponential growth and high industrialinvestment. A mature solar business model has been established, but some uncertainties hinder the development, especially whenfocusing on the lack of solar-radiation. To address these issues,in this paper we propose a hedging system to hedge the low10 radiation risk for solar-investors through the designed IoT-basedata, edge-based models for predicting solar-radiation as well as hedging options. Our experimental results show that the edge-based predictive models can obtain an R-squared value of 0.841 and a correlation coefficient of 0.917. For binary options designedin the hedging system, the broker can obtain stable payoffs withthe highest Sharpe ratio of 3.354, and the investors can obtainlarge payoffs during low-radiation. Our simulation results showthe effectiveness of the proposed hedging system for investors(buyer-side), simultaneously, present the motivation of the broker(seller-side) to join the designed hedging system utilized in solar21 power generation.