Carl Ostridge and Marion Cundari explain how REsurety’s Risk Management tools help buyers and sellers of clean energy manage their financial exposure.

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 supports diverse customer types and a range of risk tolerances through assisting in hedge origination & structuring as well as transaction services. To date, REsurety has supported 7,000 MW of transactions.

Hedge Origination & Structuring

For Corporate Buyers

Power Purchase Agreements leave corporate buyers holding financial risks that they either don’t want or can’t manage.

Our risk-transfer products for clean energy buyers bridge the gap between what buyers want and what traditional 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.

Proxy Generation PPA

  • Lock in $/MWh revenue regardless of power prices.
  • Swap merchant power price exposure for a fixed $/MWh 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