2018-07-10 10:11Blog post

The wind power company as merchant energy trader - article by Fredrik Bodecker

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A vision of the wind power company doing active hedging - extracting more value from its assets at a controlled risk level.

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 functionfocusing 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!


About Bodecker Partners AB

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.


Contacts

Fredrik Bodecker
Partner, CEO
Fredrik Bodecker
Mia Bodin
Partner, Head of Analysis & PPA
Mia Bodin
Gustaf Sundelius
Partner, Head of Portfolio Management
Gustaf Sundelius
Sevdie Denli
Senior Portfolio Manager
Sevdie Denli