Fin derivatives market for renewables, storage gets ARENA funds

Wind park in Australia. Author: Simon Yeo. License: Creative Commons, Attribution 2.0 Generic.

February 3 (Renewables Now) - Interdealer broker Tradition Financial Services’ (TFS) Renewable Energy Hub will receive funding from the Australian Renewable Energy Agency (ARENA) in support of its work to create new financial products and a trading marketplace platform for renewable energy.

ARENA said on Friday it will provide AUD 845,000 (USD 565,700/EUR 511,800) to the energy market advisory firm, whose project would help underpin new investment, and put downward pressure on the price of new renewables and grid-scale storage.

In collaboration with market participants, Renewable Energy Hub wants to develop a suite of new hedge contracts to provide revenue certainty to wind, solar, battery storage and demand response projects. This will make it easier for developers to secure financing, while giving energy retailers and large energy consumers access to standardised firm contracts for clean energy.

Renewable Energy Hub is also working on a new online marketplace platform that will support trading by providing data and tools to facilitate energy price discovery, evaluate trading options and minimise transaction costs.

“This new marketplace will facilitate trade in hedge contracts that reflect the ‘shape’ of renewable generation,” said Chris Halliwell, head of Environmental Markets at Renewable Energy Hub. “By doing this we will be enabling new portfolios of wind and solar projects, batteries and other dispatchable generators to lock in revenues, and for energy retailers to manage prices during peak periods of the day.”

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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