New Generation of Financial Products Launched to Support Renewables
ERM Power, one of the largest participants in the Australian electricity financial markets, has launched an innovative solar risk management product which bridges the gap for renewables developers in a dynamic and changing energy industry.
The solar product is the first of a new generation of financial instruments which respond to the rapidly evolving Australian renewables market. The first trade was finalised within days of the product being released to the market.
ERM Power Executive General Manager Wholesale Markets David Guiver said the new product brought much- needed price discovery and transparency to renewables.
“This supports corporate investment in renewables by providing fixed price certainty for organisations wanting to hedge solar generation production,” he said.
ERM Power developed the new product in response to strong demand from renewable project developers and corporate customers.
“The intermittent nature of solar generation can provide challenges to organisations seeking price certainty on their renewable project output, or on their corporate power purchase agreements,” Mr Guiver said.
Environmental markets broker Tradition Financial Services (TFS) facilitated the first trade in the new product, with ERM Power being matched in a Victorian market transaction.
Manager of Renewable Energy and Environmental Markets at TFS, Chris Halliwell, said today it was pleasing to introduce the new opportunity into the wholesale energy market.
“This coincides with the upcoming launch of our new wholesale ‘Renewable Energy Hub’ – a marketplace platform to firm, standardise and transact with wholesale renewables and energy buyers,” Mr Halliwell said.
ERM Power has been a leader in product innovation within the Australian energy market for many years, and the rapid shift away from traditional generation sources is driving the need for new products and services.
“Liquid financial markets bring price transparency to Australian energy markets and are vital for the effective management of risk,” Mr Guiver said.
About ERM Power
ERM Power is an Australian energy company operating electricity sales, generation and energy solutions businesses. The Company has grown to become the second largest electricity provider to commercial businesses and industrials in Australia by loadsuperi, and is the only energy retailer licensed to sell electricity in all Australian states as well as the Northern Territory and the Australian Capital Territory. A growing range of energy solutions products and services are being delivered, including lighting and energy efficiency software and data analytics, to the Company’s existing and new customer base. ERM Power also sells electricity in several markets in the United States. The Company operates 662 megawatts of low emission, gas-fired peaking power stations in Western Australia and Queensland. www.ermpower.com.au
i Based on ERM Power analysis of latest published information