Renewables

With renewables getting a steeply increasing share in the world‘s energy mix their only fuel weather becomes a more and more important economic factor. Implications of wind speed volatility are manifold.

• Wind parks are long term investments which require robust assumptions about future cash flow
• Investors need to make trade off between cash flow security and hedging cost
• PPA buyers and sellers might put a value to production floors
• Fading subsidies in general increase the necessity to hedge at least the volume side of business

Possible hedging strategies start from simple wind speed hedges to acquisition of own assets and Energy Risk Solutions looks forward to assist in choosing the right strategy.