Boston-headquartered valuation analytics and risk management firm REsurety announced this week it had passed a critical corporate and industry milestone, exceeding 5GW of risk management transactions.
A series of high-profile transactions in 2018 mark a migration of the combined risks of power market volatility and intermittent fuel sources, away from governments and utilities towards producers and end-consumers of clean energy. REsurety’s breakthrough tech solutions, deep expertise at the intersection of weather and power markets, and unrivaled databases and analytical systems are at the centre of understanding the value and risk of intermittent power generation.
In 2018, REsurety closed transactions with Microsoft, Enel Green Power North America, Engie, Orsted, Macquarie, and several other large international companies. "2018 has been a breakout year for REsurety and for the industry's adoption of risk management tools," said Lee Taylor, CEO of REsurety. "Our 5GW milestone shows the incredible demand for certainty when it comes to buying and selling renewables. Both project owners and their corporate off-takers are finding our risk mitigation products to be an accessible and cost-effective way to avoid revenue or cost volatility."
"The wind industry has made great strides in driving down costs over the last decade," said Hannah Hunt, Deputy Director for Electricity Policy and Demand, American Wind Energy Association (AWEA). "More recently we have seen improvements in driving down soft costs and REsurety's approach of using weather and pricing data to reduce volatility risk is another great success story for the industry."
"Taking on and managing the risks associated with vPPAs has become a real hurdle for corporate purchasers of renewable energy," said Roberto Zanchi from Rocky Mountain Institute's Business Renewables Center. "The early success of risk mitigation contracts as a standard part of the procurement process sets a strong precedent for other companies who are similarly eager to achieve sustainability goals while mitigating financial risk exposure."