Key Takeaways | Post-Uri Hedge Products for Storage and Renewables

By and on March 9, 2022

During the latest webinar in our Energy Transition series, Partners Robert Lamkin and Jacob Hollinger hosted Louis Martinsen, vice president, origination at Boston Energy Trading and Marketing, for a 30-minute discussion concerning hedge product opportunities for renewables and storage projects one year after Winter Storm Uri impacted Texas’s power grid.

Below are key takeaways from the webinar:

1. A year after Winter Storm Uri, hedging products for renewables are moving toward “as generated” hedges, meaning the hedge settles based on how much power the renewable project actually generates rather than based on other possible metrics (such as proxy generation).

2. A potential alternative for renewable and storage developers are hedging projects that provide a revenue “floor,” which can be thought of as a minimum level of revenue scaled to ensure that the project will receive a minimum amount of revenue sufficient to meet its operating and maintenance costs, debt service and capital expenditures regardless of market prices for the products it sells or intends to sell.

3. The providers of these hedge products are also changing to include entities serving (directly or indirectly) retail load rather than purely wholesale trading entities.

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Robert Lamkin
Robert (Rob) Lamkin represents energy trading firms, electric power generators, renewables project developers and other energy industry participants in energy trading and energy regulatory matters. Rob regularly represents clients in a variety of wholesale and retail energy trading matters, including negotiation of energy trading documentation (International Swaps and Derivatives Association (ISDA), Edison Electric Institute (EEI), North American Energy Standards Board (NAESB) and Western System Power Pool (WSPP) master agreements), physical and financial trade documentation, energy management agreements, and other agreements related to power production and energy trading. Read Robert Lamkin's full bio.


Jacob Hollinger
Jacob Hollinger handles environmental and energy-related compliance and litigation matters for energy, manufacturing and financial sector clients. He is a former high-ranking Clean Air Act attorney for the US Environmental Protection Agency (EPA), has handled dozens of government investigations and enforcement actions and has extensive experience in all aspects of civil litigation. Read Jacob Hollinger's full bio.

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