Tag: Partnership

REsurety and WattTime partner to increase accessibility to high-quality marginal carbon emissions data

Enhanced power grid insights will enable more effective investments in renewables, storage, and load siting.

Boston, Mass. and Oakland, Calif. –  Nov. 2, 2021 – Today clean energy analytics firm REsurety and environmental tech nonprofit WattTime announced a partnership to increase access to more comprehensive and granular carbon emissions data across U.S. and international markets. Through this partnership, they will leverage their respective strengths in measuring marginal carbon emissions to provide previously unavailable depth and breadth of visibility into the carbon impact of their energy-related procurement options and understand which choices offer the greatest benefit to the environment. 

WattTime and REsurety announced partnership focused on enhancing marginal emissions data

REsurety first unveiled its Locational Marginal Emissions (LME) data product in July 2021 with the support of major developers, investors, and corporates. LME empowers customers to measure and maximize how much carbon they cut through clean energy purchases. REsurety currently offers nodal LME data for the ERCOT (Texas) market. Through this new integration of WattTime’s regional emissions dataset, REsurety will also be able to provide regional marginal emissions rates across the entire continental United States as well as international power grids including Europe and Australia. 

“LME enables companies to measure the impact of their existing clean energy purchases with unrivaled accuracy and confidence, and empowers them to maximize the carbon impact of their future investments,: said Lee Taylor, founder and CEO of REsurety. “We are thrilled to have found a like-minded partners in WattTime as we work together to maximize our collective decarbonization impact.”

WattTime invented Automated Emissions Reductions (AER) software, which enables the shifting of flexible electricity loads to periods of cleaner energy and away from moments of dirtier energy, based on the time-specific marginal emissions rates in different grid balancing areas. In recent years, WattTime has also popularized “emissionality”, the practice of using the location-specific avoided emissions benefits of different renewable energy projects in the selection process. With WattTime’s help, organizations including Boston University, solar developed Clearloop, steel producer Nucor, and tech giant Salesforce have all incorporated emissionality into their renewable energy strategies. 

“With the growing urgency of the climate crisis and organizations’ desire to maximize the positive impact of their sustainability strategies and investments, REsurety and their LME platform offer a powerful tool to evaluate potential projects,” said Henry Richardson, senior analyst at WattTime. “We’re proud to support REsurety and enhance the emissions intelligence they are are able to provide.”

LMEs bring a new level of precision and accuracy to measuring the carbon abated or created at any given moment and at any given location on the grid. By calculating the carbon emissions at each node on the grid with hourly granularity, REsurety’s LME product offers, for the first time, visibility into the project-specific carbon impact of each clean energy purchase or investment. By integrating WattTime’s emissions data into its platform, REsurety will be able to provide its clients with regional marginal emissions data in areas where the nodal LME data is not yet available, thereby greatly expanding the geographic coverage of the platform. 

About REsurety
REsurety is the leading analytics company empowering the clean energy economy. Operating at the intersection of weather, power markets and financial modeling, we enable the industry’s decision makers to thrive through best-in-class value and risk intelligence, and the tools to act on it. Learn more about REsurety at: www.resurety.com or follow REsurety on LinkedIn.

About WattTime
WattTime is an environmental tech nonprofit that empowers all people, companies, policymakers, and countries to slash emissions and choose cleaner energy. Founded by UC Berkeley researchers, we develop data-driven tools and policies that increase environmental and social good, including Automated Emissions Reduction and emissionality. WattTime is also the convening member and cofounder of the global Climate TRACE coalition. During the energy transition from a fossil-fueled past to a zero-carbon future, WattTime ‘bends the curve’ of emissions reductions to realize deeper, faster benefits for people and the planet. For more information, visit https://watttime.org

Allianz, Nephila, REsurety & Altenex partner to provide innovative Proxy Revenue Swap

The world’s first Proxy Revenue Swap is announced – securing long term revenues for Capital Power’s Bloom Wind Farm.

Allianz Risk Transfer (Bermuda) Limited (ART) and partners have developed an innovative risk management solution for hedging wind volume risks for wind farms. ART has executed a 10-year Proxy Revenue Swap with Capital Power’s Bloom Wind Farm, to be constructed near Dodge City, Kansas.

This new risk management tool for the wind power industry was created and commercialized through a partnership amongst ART, Nephila Capital Limited (Nephila), REsurety, Inc (REsurety) and Altenex, LLC (Altenex). The 10-year agreement will secure long-term predictable revenues and mitigate power generation volume uncertainty related to wind resources for the 178 MW Bloom Wind Farm.

“This new product line for the wind power industry will enable more efficient and cost-effective financing of wind generation projects,” said Karsten Berlage, Managing Director of ART. Due to the high upfront cost of modern utility-scale wind projects, it is important for investors in such projects to be able to secure long term stable revenues to underpin the investment.

Previously, traditional price-focused hedging solutions have been commonly used to try to address this, but this newly created Proxy Revenue Swap offers an entirely new form of revenue risk management for the wind power industry. Similar in concept to a tolling agreement or capacity payment, this novel structure swaps the floating revenues of a wind farm – those driven by the hourly wind resource and power prices – for a fixed annual payment. This transaction is the first in a robust pipeline of future wind financings and would also be feasible in other wind farm markets globally beyond the US.

The ART-led swap is unique in several aspects. “Recent advances in data availability for the US wind market as well as in risk assessment and modeling allowed this unprecedented scope of risk transfer within a single product, which is available for up to 10 years,” explained Berlage. “In contrast to more short-term and price-focused hedging approaches, for the first time price and wind volume risks of a wind farm have been managed at the tenor needed to support a project’s capital structure and balance sheet”, Berlage continues. “The result is a level of revenue certainty never before available to the wind industry.”

Each partner contributed highly specialized expertise to create this innovative swap solution. ART and Nephila leveraged their collective weather risk transfer expertise, risk capacity, underwriting sophistication and credit strength. REsurety has provided the specialized risk analyses relied upon for the structuring of the Proxy Revenue Swap and delivers ongoing services as the calculation agent for the transaction. Altenex supports the management of power price-linked risk as part of the Proxy Revenue Swap structure.

ART and Nephila have a long-standing partnership in the weather and catastrophe risk markets and have worked with REsurety since 2012 to develop risk transfer products for the wind power industry. More recently, through a partnership established between REsurety and Altenex in 2015, protection against low wind output has been expanded to include power price risk as well as generation volume-linked risk exposures.