 This paper proposes the use of higher-order derivatives for managing the risks associated with wind power generation. It shows how standardization of weather derivatives can increase market liquidity and efficiency, and suggests a lasso regression approach to narrow down the number of traded instruments. Empirical analysis indicates that higher-order derivatives can enhance the out-of-sample hedge effect and reduce trading volume. This article was authored by Takujimatsumoto and Yuji Yamada.