Risk Management
As the renewable energy industry evolved beyond utility PPAs as the primary form of offtake, so did the scale and complexity of risks faced by the buyers and sellers of clean energy. REsurety offers risk management strategies through assisting in hedge origination & structuring as well as transaction services.
Hedge Origination & Structuring
For Clean Energy Buyers
PPAs leave clean energy buyers holding financial risks that they either don’t want or can’t manage. Our products bridge the gap between what buyers want and what PPAs and vPPAs offer.
Settlement Guarantee Agreement
- Swap variable PPA settlements for a fixed payment or premium.
- Lock in revenue or cost certainty for years.
Volume Firming Agreement
- Match renewable generation to your load profile.
- Swap a variable generation profile for a financially-firmed shape.
For Clean Energy Sellers
Projects can’t control how much fuel (wind speed or sunshine) is available in a given hour, month or year, or what the corresponding power prices will be.
Proxy Revenue Swap
- Lock in revenue regardless of resource availability and power prices.
- Swap variable merchant revenue for a fixed annual payment.
Balance of Hedge
- Swap existing Fixed Volume Swap settlements for an annual fixed premium or payment.
Transaction Services
Settlement
Valuation
Reporting
Calculation of settlement payments, including separation of operational and weather-driven gains and losses
Automated, dynamic forward valuation of contracts for accounting and compliance purposes
Reporting of creation and continuation data for Dodd-Frank compliance
Carl Ostridge and Marion Cundari explain how REsurety’s Risk Management tools help buyers and sellers of clean energy manage their financial exposure.