Energy Weather Risk
As a leading global provider of weather risk management products, the Sompo Global Weather team offers weather protection products tailored to the unique weather-driven challenges for our clients across the energy value chain.
We have significant experience creating value-added solutions for our global clients including utilities, independent power producers, upstream gas producers as well as renewable energy (wind, solar and hydro).
WeatherLock® – financial products targeted to both the traditional energy and renewable energy sectors, addressing volatility in weather-driven demand and supply. These can be indexed to temperature, rainfall, snowfall, humidity, solar radiation, wind speed and other weather variables as required:
- TempLock® – Protection against variability in temperature (average, maximum and minimum)
- HydroLock® – Precipitation protection for hydro-generators in low rainfall years
- WindLock® – Cumulative production floors and swaps to stabilize earnings for wind farms
- SolarLock® – Cumulative production floors and swaps to stabilize earnings for solar projects
CommodityFlex® – financial products designed to mitigate variability in revenue arising from weather-driven volatility in demand correlated with commodity prices.
- PowerFlex® – Protects against the interaction of temperature and electricity prices
- GasFlex® – Protects against the interaction of temperature and natural gas prices
- OilFlex – Protects against the interaction of temperature or precipitation and global oil prices
Renewable Energy Risk Management
- Single asset and portfolio modeling for (re)financing
- Overlay Hedges for Wind-Linked Bonds
- Significant transactional capacity
- Products can be delivered on a global basis as either derivatives, insurance or (re)insurance
- Contracts can range in duration from several days to several years and be written in a variety of world currencies