Nephila Climate (NCx), the recently established weather and ESG-driven specialty division of Nephila Holdings, has completed the first solar farm Proxy Revenue Swap transaction in partnership with Allianz Global Corporate & Specialty SE.
The parties successfully closed a first set of solar Proxy Revenue Swaps for the Susan River Solar and Childers Solar facilities in Australia, both of which are owned by subsidiaries of Elliott Green Power.
The two five-year transactions are expected to protect the new solar projects’ revenues from financial risks associated with uncertain production volume, timing of energy generation, and future energy prices.
Although Proxy Revenue Swap transactions have previously been used to de-risk wind projects, these two transactions mark the first time they have been applied to a solar venture since the hedging project was launched in 2016.
Richard Oduntan, Chief Executive Officer (CEO) of Nephila Climate, said: “NCx is delighted to see the expansion of the Proxy Revenue Swap to Australia and to solar projects. We are pleased that the availability of such customized risk capacity served a critical role in helping to de-risk these two solar projects.”
Karsten Berlage, Managing Director of Allianz, also commented: “We are excited to create and commercialize this new risk management tool for the solar industry following our successful provision of hedging solutions for investments in the wind sector.”
Umberto Tamburrino, CEO of Elliott Green Power, added: “We are delighted to partner with NCx and Allianz on this innovative transaction, and look forward to expanding our relationship with them in the future.”
Elliott announced financial close for the 98 MW Susan River Solar farm and 78 MW Childers Solar farm projects in January 2018 and construction is expected to take nine months.
