Renewable Energy Hedging from A to Z
MASTER CLASS OVERVIEW
This two-day Renewable Energy Hedging from A to Z Virtual Master Class will define and describe renewable energy hedges, examine in-depth each major component of a renewable energy hedge, and explain the reasoning behind each component.
Attendees will take a deep dive into prevailing market trends in balancing the needs of offtaker, project and project lenders/financers and learn how market uncertainty might impact valuations. Taught by experienced active practitioners, this class will assess interparty and collateral risks and examine what offtakers are looking for in pricing structures and what risks they are willing to take.
This is your opportunity to learn the contractual framework and nuances involved in hedging, and the financing of such bespoke instruments with today’s most current practices. The intensive curriculum will reflect the interests, concerns, and requirements of all participants in a renewable energy hedge, and give attendees a working knowledge of hedge structures and risk mitigation strategies.
The entire discussion will be underpinned by contemporary real-world examples to illustrate the details.
MASTER CLASS FEATURES
Relevant & Timely Content: 9+ hours of in-depth, highly-relevant content and interactive learning conducted by knowledgeable and respected industry leaders as your class instructors. Bring your toughest problems for expert advice!
Competitive Advantage: Get tangible outcomes for immediate use and application!
- Understand how to assess interparty and collateral risks vs. overall market risks
- Review and understand acceptable hedge examples and their individual assessments
- Understand the pros and cons of financially settled hedges vs. physically settled hedges
- Understand the common forms of renewable hedges: physical fixed-volume hedges, financial hedges (VPPAs, synthetic PPAs, contracts for differences), proxy revenue swaps
- Identify the pros and cons of each type of hedge to bound various types of project risks
- Gain Perspective on how lenders consider the impacts of cash flow risks: Basis risk, Volume risk and shape risk, Covariance risk
- Identify how to use hedges to mitigate risks: understanding mandatory prepayment triggers, tracking accounts, reserve accounts, distribution blocks
- Collateral Assignment: the differences between customary and hedge consents
Virtual Office Hours
- Exclusive access to the Lead Instructors one week after the conclusion of the Master Class
- Receive personal attention from the Lead Instructors for questions unique to you
Live Discussion and Q&A
- Engaging and interactive live discussion and Q&A after each session
- Live participation: submit questions and comments in real-time for our expert Instructors
On-Demand Access
- Attend remotely from wherever you are – from home or at the office
- Full access to all premium class content, presentations and recordings for 30 days
Class Outline
Everything You Ever Wanted to Know About Hedges but Were too Afraid to Ask!
- Learn the types of hedges and how they are employed in renewable energy deals
- Understand the changing risk appetites of key participants in financings
- Grasp how to manage basis, interparty, and collateral risks
- Gain an understanding of hedge cost and what hedges are acceptable
- Hear what offtakers are looking for in pricing structures and what risks they are willing to take
- Discuss the current trends in the market and how the economic downturn has affected hedge pricing
- Learn how to negotiate between the needs of the offtaker and project sponsors
- Explore a deep dive into the different risks and what structures mitigate each of them
Carl Cho
Carl is the global industry approver for all Power and Alternative Energy transactions that also require credit approval, which includes corporate lending, debt underwriting and bridge facilities, project financing, tax equity and power-related hedging transactions.
His role is to assist originators with due diligence, financial projections and valuation, maintain an active dialogue with industry consultants, and advise credit approvers on industry-related technical, regulatory and market risks.
Carl is also a senior corporate banker in Citi’s Power and Alternative Energy group. His clients have included wind and solar developer/owners, solar manufacturers and independent power producers.
Carl has been with Citi for over 25 years. His experience includes Structured Finance origination and Risk Management prior to joining Power in 2011. He is based in New York.
Bob Simmons
Bob Simmons is Senior Managing Director for the firm and responsible for developing Marathon’s suite of advisory products and services to owners and operators of power generation assets as well as expanding Marathon’s business into infrastructure and other asset classes.
Mr. Simmons has held various positions in sell-side and buy-side capacities as an investment banker and principal investor in the electric power sector. He was Founding Partner and Executive Partner at Panda Power Funds, and held various roles including Chief Financial Officer, Treasurer, Chief Compliance Officer and Member of the Investment and Valuation Committees. At Panda, he was responsible for raising $6 billion in total capital for Panda’s most recent projects across PJM and ERCOT. He previously held positions as Managing Director with Deutsche Bank, and Vice President with Swiss Bank Corporation and Citibank.
Jeff Cohen
Key Experience
- Focuses on project and general corporate finance and investment.
- Practice emphasizes large-scale infrastructure project financings, energy, including renewable energy and tax equity financings and investments, non-recourse debt financings, mergers and acquisitions and general corporate matters.
- Certified Public Accountant (CPA).
Jeff Cohen represents a wide range of lenders, developers and investors in the development, financing, acquisition and disposition of large-scale infrastructure projects and energy projects, including renewable energy, telecommunications and emerging technology.
Michael Enger
Bio coming soon...
Walter Cuculic
Bio coming soon...