Working with Sydney-based Infigen Energy, the largest owner of wind energy capacity in Australia, Swiss Re Corporate Solutions' team developed a product that hedges Infigen’s entire 557MW Australian portfolio of six wind farms against weak wind conditions.
It is the first hedge of its kind, as it is based on actual energy production across multiple sites, in South Australia, New South Wales and Western Australia. Traditional wind hedges are tied to single sites and are based on modelled wind speed indexes.
Juerg Trueb, Head of Environmental & Commodity Markets, commented: "It is notable that we continue to receive recognition for our deals in the world's most dynamic renewable energy markets. We are pleased to maintain our leading position in the area of weather risk management and to offer some of the most innovative solutions to our global clients."
Stuart Brown, Head Origination Weather & Energy Asia Pacific-EMEA, added: "Deals like this one are front and center in our strategy to take weather risk out of renewable generation in ways that add value to participants in the business. It's an honor to be recognised as an industry pathfinder with such an award."
In an interview withEnvironmental Finance, Jamie Summons, Originator Weather and Energy, outlined some specifics of the deal and mentioned: “It’s never been done before anywhere. It took some time to design, but it was important to get it right.”
Environmental & Commodity Markets (ECM), Corporate Solutions' unit specialises in weather risks, offers tailor-made products to protect against weather-related risks across a broad range of industries, such as agriculture, construction, energy, retail and tourism. With its growing footprint (in 2015, Johannesburg and Shanghai were added to the list of offices with weather professionals on the ground) and highly sought-after expertise, ECM has the ability to offer solutions for temperature, rainfall and wind, often with commodity price based settlement.
Environmental Finance is a global online news and analysis service reporting on sustainable investing opportunities and environmental issues. Its annual "Deals of the year" award recognises excellence in the application of capital markets know-how to addressing the world’s environmental problems.
Swiss Re Corporate Solutions appoints...
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