REsurety, a provider of valuation analytics and risk management services to the buyers and sellers of renewable energy, recently announced that it has reached a critical milestone, having surpassed more than 5,000 MW of risk management transactions. Transactions with Microsoft, Enel Green Power North America, Engie, Orsted, Macquarie, and several other large international companies have fueled nearly half that cumulative volume in 2018 alone.
“Our 5GW milestone shows the incredible demand for certainty when it comes to buying and selling renewables,” said Lee Taylor, CEO of REsurety.
One example of REsurety’s risk mitigation initiatives is Enel Green Power North America, which has utilized the Proxy Revenue Swap (PRS) hedging structure to support the revenues of 295 MW of its 450 MW High Lonesome wind project in Texas – marking it the largest PRS ever signed.
Recent announcements by clean energy pioneers such as Microsoft in the U.S. and Orora in Australia demonstrate that buyers of renewable energy are also embracing risk management products to manage the volatility associated with their purchases of clean energy.
“Taking on and managing the risks associated with vPPAs has become a real hurdle for corporate purchasers of renewable energy,” said Roberto Zanchi from Rocky Mountain Institute’s Business Renewables Center. “The early success of risk mitigation contracts as a standard part of the procurement process sets a strong precedent for other companies who are similarly eager to achieve sustainability goals while mitigating financial risk exposure.”
As the global clean energy industry matures, the combined risks of power market volatility and intermittent fuel sources have migrated away from governments and utilities to the producers and end-consumers of clean energy. That increasing complexity and scale of risk require a new breed of information and risk management products.
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