Wind farm in Texas: first Proxy Revenue Swap agreement for EGP has been signed

Published on Thursday, 7 February 2019

“The construction of High Lonesome clearly shows the popularity and success of innovative solutions for protecting renewables financially. The majority of stakeholders today are interested in the growth prospects of renewables and that is why Allianz is committed to flexible strategies like PRS to mitigate risks - long term.”

– Karsten Berlage, Managing Director of Allianz Risk Transfer

Innovation, Our First Source of Energy

The wind of Texas, according to American Wind Energy Association, ranked the number one state for installed wind capacity in the U.S, will allow us to transform and make Power Purchase Agreements (PPAs) even more efficient. These tools create solid and lasting partnerships with commercial and industrial customers, providing sustainable energy, competitive costs and personalized solutions.

In collaboration with REsurety Inc., a leader in risk management and informational services for renewables, we’ve signed our first Proxy Revenue Swap (PRS) agreement.

A Proxy Revenue Swap (PRS) is a financial derivative contract that produces stable revenue flows for the plant, regardless of the volatility of energy prices and varying production due to meteorological factors.

This kind of contract allows us to cover the risk in the relationship between hourly price of energy and volumes generated (shape risk) as well as the risk in varying energy volumes and prices.

With High Lonesome, we are seeing an evolution of renewable energy contracts. Our plant will receive fixed payments, calculated based on the expected value of future energy production, in addiction to a variable share based on the actual returns of the project.

Sustainability and PPAs

Enel Green Power has made sustainability its guiding light. In line with the UN’s Sustainable Development Goals, (SDGs), we focus our attenction on the environment and biodiversity at each phase of a plant’s construction.

This is why we’ve outlined a Create Shared Value (CSV)model to help us work toward a greener future, using the renewable energy we produce to improve living conditions for the communities surrounding our “Sustainable Worksites”.

After HillTopper, Diamond Vista and Rattlesnake Creek, our journey to discover the large Enel Green Power wind farms in the United States comes to an end with High Lonesome. We’re ready to head to another country.