PPA 2.0 - Energy Yield Insurance

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?

BENEFITS FOR 
SELLERS

Depending on the specific type of the power purchase agreement,
weather hedge solutions can provide benefits for a seller 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 profile of the asset since historical production data is available. 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
ENTER RE WAVE
Log in to RE WAVE
Create your free account and hedge your volume risk position
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.
BOOK A DEMO