kWh Analytics Pioneers First-of-its-Kind Parametric Wind Proxy Hedge for Greenbacker with Munich Re, MUFG
This innovative structure hedges wind speed utilizing the kWh Analytics Indifference Structure, enhancing the project’s P99 scenario and reducing the sponsor equity requirement.
kWh Analytics, the market leader in
Wind is a notoriously volatile resource, resulting in distributions with tail events (i.e. P99) that can severely impact debt sizing. Wind speed variability far exceeds that of solar irradiance, presenting unique challenges for project financing. The wind proxy hedge paired with the kWh Analytics Indifference Structure addresses this volatility, significantly improving the project’s P99 scenario by adding investment-grade cash flow above the P99 wind speed. This credit enhancement makes the project more attractive to lenders, leading to increased debt capacity. By incorporating the wind proxy hedge and kWh Indifference Structure, each dollar of premium paid for the product resulted in
kWh Analytics served as an advisor to Munich Re during the structuring process, drawing on their expertise in designing risk transfer products for renewable energy such as the
For more information about the wind proxy hedge and/or the kWh Analytics Indifference Structure and its application for solar and wind, please contact
ABOUT kWh Analytics
kWh Analytics is a leading provider of
ABOUT Munich Re
Munich Re is one of the world’s leading providers of reinsurance, primary insurance and insurance-related risk solutions. The group consists of the reinsurance and ERGO business segments, as well as the asset management company MEAG. Munich Re is globally active and operates in all lines of the insurance business. Since it was founded in 1880, Munich Re has been known for its unrivalled risk-related expertise and its sound financial position. It offers customers financial protection when faced with exceptional levels of damage – from the 1906 San Francisco earthquake through Hurricane Ian in 2022. Munich Re possesses outstanding innovative strength, which enables it to also provide coverage for extraordinary risks such as rocket launches, renewable energies or cyberattacks. The company is playing a key role in driving forward the digital transformation of the insurance industry, and in doing so has further expanded its ability to assess risks and the range of services that it offers. Its tailor-made solutions and close proximity to its customers make Munich Re one of the world’s most sought-after risk partners for businesses, institutions, and private individuals.
About MUFG and
Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in
MUFG’s
ABOUT
View source version on businesswire.com: https://www.businesswire.com/news/home/20240723537354/en/
Senior Marketing Manager
kWh Analytics
E | [email protected]
T | (720) 588-9361
Munich Re
E | [email protected]
T | +41 (0)58 22 66 216
Source: kWh Analytics
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