June 25, 2022

Volume XII, Number 176

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

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.

 

 

© 2022 McDermott Will & EmeryNational Law Review, Volume XII, Number 68
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About this Author

Robert Lamkin, Energy Trading, Regulation, Attorney, Mcdermott Will, law firm
Partner

Robert Lamkin is a partner at the law firm of McDermott Will & Emery LLP and is based in the Firm’s Washington, D.C. office.  His practice focuses on energy trading and energy regulatory matters.

Rob represents energy trading firms, electric power generators, renewables project developers and other energy industry participants in a variety of matters.  Most recently, Rob has represented clients in a variety of wholesale and retail energy trading matters, including negotiation of energy trading documentation (ISDA, EEI, NAESB and WSPP master...

202-756-8684
Jacob Hollinger , Environmental & Energy Attorney McDermott Will Emery Law Firm
Partner

Jacob Hollinger is a partner in the law firm of McDermott Will & Emery LLP and is based in the Firm’s New York office.  His practice focuses on the environmental, regulatory and litigation needs of energy and manufacturing sector entities.

Prior to joining McDermott, Jacob spent nearly ten years as a government enforcement attorney, first with the New York State Attorney General’s Office and later with the U.S. Environmental Protection Agency.  As an Assistant Attorney General for New York State, Jacob was New York’s lead litigation counsel in several complex environmental and...

212-547-5834
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