Wind power markets are moving from feed-in tariffs to market-based payments. Market price risks can be more or less avoided with PPAs but at the cost of 30 percent or more of the value further out in time, a loss of flexibility and a large timing-risk when closing a PPA.
By setting up an in-house merchant trading function, focusing on cash flow and not production, it is possible to construct a hedging strategy with almost similar risk profile as a long-term (corporate)PPA but with maintained longterm value, flexibility and lower timing risk.
It does not have to be as complicated and expensive as you may be led to believe!
Bodecker Partners’ expertise within Swedish electricity certificates and carbon emission rights, as well as the Nordic power market, is first-class. We offer independent advisory services to power producers and renewable energy investors in addition to tailored portfolio management services for electricity certificates and carbon emission rights.