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Allianz agrees 4th Proxy Revenue Swap for US wind farm

Invenergy wind farm. Source: Invenergy (www.invenergyllc.com).

February 8 (Renewables Now) - Allianz Global Corporate & Specialty (AGCS) has entered into a 10-year Proxy Revenue Swap with US renewables developer Invenergy for its 202.5-MW Upstream Wind Energy Center in Nebraska.

The contract will protect the new asset’s revenues from the financial risks related to future energy prices and the uncertain volume and timing of power production, AGCS explains in a statement.

The proxy revenue swap is a risk management tool for the wind sector. It was created by a partnership between Allianz Risk Transfer (Bermuda) Ltd, Nephila Capital Ltd, REsurety Inc and Altenex LLC. This latest deal marks the fourth Proxy Revenue Swap since the launch of the product in 2016 and brings the total of Proxy Revenue Swap-hedged wind capacity close to 700 MW, AGCS said.

“De-risking our future revenues with this hedging structure was critical to securing the project’s financing,” said Jim Shield, EVP and chief commercial officer at Invenergy.

The project developer announced it had secured the funds needed to build the Upstream Wind Energy Center a month ago. The wind power facility, currently being built in Antelope County, is slated to begin commercial operations in the last quarter of 2018. To be powered by 81 turbines, it is expected to generate enough electricity for about 68,000 homes and businesses, once completed.

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Ivan is the mergers and acquisitions expert in Renewables Now with a passion for big deals and ambitious capacity plans.

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