Proxy Revenue Swap
A renewable energy project can choose where to build and how to operate. However, it has no control over how much fuel (wind speed or sunshine) shows up in a given year, what average power prices will be or how well hourly fuel volumes will correlate with energy prices. A Proxy Revenue Swap hedging contract provides renewable energy projects with protection against exposure to these uncontrollable risks.
Under a Proxy Revenue Swap, a renewable energy project exchanges its variable revenue stream for a fixed payment - providing an unprecedented level of cash flow certainty.
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