Nephila Climate, the weather and ESG-driven specialty division of Nephila Holdings Ltd., together with Allianz Global Corporate & Specialty SE’s alternative risk transfer unit (“Allianz”), announced today that they have closed a first set of solar Proxy Revenue Swaps for two solar projects in Australia, the Susan River Solar and Childers Solar facilities.
The two five-year transactions will protect the new solar projects' revenues from the financial risks associated with uncertain production volume, timing of energy generation and future energy prices.
The 98 MW Susan River Solar Farm and 78 MW Childers Solar Farm, owned entirely by subsidiaries of Elliott Green Power are both located in South East Queensland, Australia. Elliott announced financial close for the projects in January 2018 and construction is expected to take nine months.
These two transactions mark the first time the Proxy Revenue Swap has been applied to a solar venture since the innovative hedging product was launched in 2016. Previously, Proxy Revenue Swap transactions have been used to de-risk wind projects.
Allianz’s Managing Director, Karsten Berlage also noted, “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.”
Nephila Climate’s CEO Richard Oduntan 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.”
Elliott Green Power’s CEO, Umberto Tamburrino, 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.”