We improve project outcomes through the mitigation and transfer of performance risk
As a deeply experienced risk transfer partner, we both underwrite and broker proprietary and customized products that meet the needs of renewable energy sponsors and financiers.
kWh Analytics works with all parties involved in a renewable energy project. We employ complex mathematical modeling to identify the optimal solution and provide a tailored service that protects the sponsor’s bottom line, as well as lender and tax equity investments, in the face of performance volatility. We have a proven track record of providing Performance Insurance products that are widely acceptable to project finance investors, including banks and project bond investors.
Risk categories we consider
Solar production volatility
(irradiance and availability)
Solar technology risk
Wind speed volatility
SOLAR REVENUE PUT
Solar production insurance that improves debt terms
Peace of mind means protection against up to 95% of solar energy underproduction risks, thanks to a data-driven policy that gives an investment-grade guarantee.
Our Solar Revenue Put (SRP) reduces financial risk on a range of solar projects, protecting 10–25 years’ production against equipment failure, irradiance deficiency, weather, wildfire smoke, and other risks, with claims paid out within 30 days to ensure timely debt service payments. Already applied on over $4B of solar assets, recognized by 30+ major lenders, and backed by insurance carriers with investment grade financial ratings, the SRP is North America’s only solar production insurance that incentivizes lenders to offer improved terms thanks to its accurate forecasting and pricing enabled by our extensive solar performance data.
CASE STUDY
Insuring energy production on 143 MW of new-build solar projects for Matrix Renewables
We structured a Solar Revenue Put policy that enabled Matrix Renewables to secure financing for 143 MW of solar projects by covering 26 years of solar energy production, in the process paving the way for project owners to meet growing demand for renewable energy through the development of new solar projects.
Unreliable energy generation places solar projects at risk, making it difficult to secure financing and limiting the ability of owners to meet the accelerated demand for new projects. Matrix Renewables sought a solution that would open up financing for 143 MW of new-build, utility-scale solar projects.
kWh Analytics structured a Solar Revenue Put policy that covers Matrix Renewables’ solar production, providing protection against downside risk and serving as a credit enhancement that allowed Matrix Renewables to achieve more favorable financing terms from major lending partners MUFG, HSBC, the Commonwealth Bank of Australia, and the National Bank of Canada.
The policy supports the Gaskell West 2 and 3 projects, helping Matrix Renewables to secure financing and covering production for the full 26-year debt amortization term. Portfolios backed by the Solar Revenue Put can support higher leverage levels or lower credit spreads, reducing equity checks and mitigating downside risk. Insuring almost 3 GW of renewable generation capacity to date, the Solar Revenue Put supports the development of new solar energy projects.
Is kWh Analytics’ Solar Revenue Put right for you?
We will work with you to determine if the Solar Revenue Put is right for your financing structure.
WIND PROXY HEDGE
A credit enhancement that improves the bankability of wind projects
Wind speed volatility is a major threat to wind energy projects – kWh Analytics’ Wind Proxy Hedge, coupled with our Indifference Financing Structure, helps owners manage this risk and secure more debt capital.
The Wind Proxy Hedge essentially creates a floor on energy generation revenues in the face of volatile wind speeds, taking downside risk out of financing for wind projects. This credit enhancement makes wind projects more attractive to lenders, resulting in increased debt capacity.
Why kWh Analytics’ Wind Proxy Hedge?
First of its kind
The Wind Proxy Hedge is the only parametric wind hedge that is paired with the unique kWh Analytics Indifference Structure proven to unlock additional indebtedness of >20%.
Industry-leading backing
The Wind Proxy Hedge and Indifference Structure is designed and tailored by kWh Analytics and backed by leading global reinsurers and/or weather derivatives counterparties with investment grade credit ratings.
Enhanced bankability for wind projects
By protecting revenues from wind energy generation, the Wind Proxy Hedge enables sponsors to raise more debt capital.
Mitigation for wind volatility
The WPH significantly improves a project's P99 scenario by adding investment-grade cash flow above the P99 wind speed.
Market expertise
The Wind Proxy Hedge is paired with kWh Analytics’ proprietary Indifference Structure, reducing the impact of wind speed variability on debt sizing.
CASE STUDY
Helping Greenbacker Capital Management secure 20% more debt for a 59 MW wind project through our Wind Proxy Hedge
In partnership with Munich Re and MUFG, we developed a Wind Proxy Hedge that uses historical data to cover shortfalls caused by wind speed variability, reallocating risk to help Greenbacker Capital Management’s 59 MW wind energy project in Maine secure 20% more debt than would have otherwise been possible.
Wind projects can be challenging to finance, with wind variability a key factor in determining debt sizing – and Greenbacker Capital Management’s recent 59 MW wind project in Maine was no exception.
Working alongside MUFG and Munich Re, kWh Analytics’ utilized a wind proxy hedge to essentially put a floor on the project’s revenues by compensating for any shortfall caused by variable wind speeds. By using decades of historical wind data for our forecasting, we were able to reallocate the project’s wind speed risk from lenders to a weather derivates counterparty, Munich Re, and substantially mitigate this risk for the debt providers, allowing them to offer additional debt on the project.
The hedge is calibrated so that the project’s “worst-case” P99 scenario was no longer a limiting factor for debt sizing, enabling the developer to secure greater than 20% more debt than otherwise expected. By helping to secure financing for wind projects, this product is accelerating the clean energy transition.
Performance Insurance Team
Adam Shinn
Technical Lead, Product & Strategy
Adam Shinn is a Technical Lead of Product and Strategy at kWh Analytics. Prior to...
Read more
Dori Darras
Sales & Underwriting Operations Manager
Dori Darras is the Underwriting Operations Manager at kWh Analytics. Dori has spent six years...
Read more
Geoffrey Lehv
SVP, Head of North American Accounts
Geoffrey Lehv is the Sr. Vice President, Head of North American Accounts at kWh Analytics....
Read more
geoffrey.lehv@kwhanalytics.com
Hannah Rasmussen
Manager, Data Operations
Hannah Rasmussen is a Data Operations Manager at kWh Analytics. Prior to working at kWh...
Read more
Mike Kalnas
Underwriter, Renewable Energy
Mike is an Underwriter at kWh Analytics. Mike began his career working in Commercial Banking...
Read more
michael.kalnas@kwhanalytics.com