Energy Yield Insurance

BE protected AGAINST wind volatility,
power curve deficiencies
and electrical losses

Energy Yield Insurance agreements allow for producers to be protected from the risks related to wind volatility, power curve deficiencies in renewable energy assets, and electrical losses which may occur at the grid connection point of a renewable energy asset.

Sellers of renewable energy face alternative risks compared to traditional, fuel-based energy producers. Even through intense study, research, planning and engineering, a producer cannot control the volume of e.g. a wind farm or solar farm. The uncertainty if the renewable energy resource is available in time places risks to the economic viability of the renewable energy asset itself, especially in the context of sales contracts like e.g. Power Purchase Agreements (PPAs).

Read our whitepaper for more detailed information about the PPA 2.0 and Energy Yield Insurances.
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Since Energy Yield Insurance agreements can significantly reduce the shape risk for sellers, they are fostering the availability of baseload PPAs in future PPA markets. Those can be called PPA 2.0 which have a strong potential to accelerate the energy transition. Even during volatile market situations.
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Sellers of renewable energy are frequently exposed to fluctuating energy outputs. This volume risk materializes especially in case of baseload contracts since sellers are obliged to buy certain amounts of energy on secondary markets in case of underproduction of the renewable energy asset. Beside technical issues of the asset itself, production deficits mainly occurs if the renewable energy source is not available which means in simple words if the wind is not blowing, or the sun is not shining.

To control this risk, weather hedge solutions offered on our platform RE WAVE enable sellers to close baseload power purchase agreements, realize higher sales prices by reducing the risk structure of the entire renewable energy asset simultaneously.

HOW DOES IT WORK?

PART I

Watch the video to learn more about the basic function of weather hedges and how to integrate them in your energy sales strategy.

PART II

Watch the video to learn more about the specific instruments, their functionality as well as the risk and return profile of different hedging approaches.

BENEFITS 
FOR SELLERS

Depending on the specific type of the power purchase agreement, a PPA 2.0 as a weather hedge solution
can provide benefits for developing and operating assets in two ways:
For assets under development, weather hedges may reduce the liquidity risk by reducing the volume and shape risk. Moreover, these hedges also increase the bankability of the renewable energy project and enable the asset owner to realize better financial leverages
For assets under operation, weather hedges improve the risk and return profil of the sset since historical production data is avaiable. This may reduce the required amount of insurance premium due to a higher validity of underlying production data
Steps to integrate your own weather hedge
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We will guide you through all features.
You can hedge your volume risk position with our renewable energy experts by scheduling a demo and creating your free account.
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SELECT COUNTRY
+30 countries covered
Choose the country in which your renewable energy asset is located and which is covered by our hedging partner
UPLOAD ENERGY GENERATION
Real or simulated 8760 production
Provide coordinates of the asset, production data and additional information
SELECT HEDGING INSTRUMENT
Manage your risk
Choose the hedging instrument (e.g. Volume Swap) according to your risk appetite
START REQUEST 
FOR INDICATIONS
Get pricing and financing indications
Send a request for getting a commercial indication on pricing and structure of the hedging product
DOWNLOAD AND CLOSE 
INSURANCE CONTRACT
Enter the route to decarbonisation
Get the standardized insurance contract and start the final negotiation
1
ENTER RE WAVE

Create your free account and hedge your volume risk position

2
SELECT COUNTRY

Choose the country in which your renewable energy asset is located and which is covered by our hedging partner

3
Upload Energy Output

Provide coordinates of the asset, production data and additional information

4
Select Hedging Instrument

Choose the hedging instrument (e.g. Volume Swap) according to your risk appetite

5
Start Request for Indications

Send a request for getting a commercial indication on pricing and structure of the hedging product

6
Download and close Insurance Contract

Get the standardized insurance contract and start the final negotiation

START CONNECTING
FOR ENERGY TRANSITION
Contact us for more information about our renewable energy platform RE Wave and for a free demo.
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