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Market risk exposure inonshore wind in Germany- a potential model for hedging: Company X-onshore wind in Germany: a market entry strategy

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Detalhes bibliográficos
Resumo:This work project aims to analyse the financial merits of eight different price-risk hedging strategies for onshore wind farms, including sector-specific strategies together with traditional financial approaches. The methodology relies on a financial model developed through extensive secondary research and expert interviews, after which project and equity returns are compared. Findings reveal that Power Purchase Agreements best mitigate price risk, yet the recent market downturn for this support scheme across Germany yields lower project returns. To ensure a strong risk-return profile, firms should leverage Germany’s existing support scheme of Feed-In-Premiums, locking in a floor selling price while preserving upside potential.
Autores principais:Amaral, Miguel Viana Baptista
Assunto:Renewable energy Onshore wind Risk Hedging Germany CEMS MIM
Ano:2025
País:Portugal
Tipo de documento:dissertação de mestrado
Tipo de acesso:acesso embargado
Instituição associada:Universidade Nova de Lisboa
Idioma:inglês
Origem:Repositório Institucional da UNL
Descrição
Resumo:This work project aims to analyse the financial merits of eight different price-risk hedging strategies for onshore wind farms, including sector-specific strategies together with traditional financial approaches. The methodology relies on a financial model developed through extensive secondary research and expert interviews, after which project and equity returns are compared. Findings reveal that Power Purchase Agreements best mitigate price risk, yet the recent market downturn for this support scheme across Germany yields lower project returns. To ensure a strong risk-return profile, firms should leverage Germany’s existing support scheme of Feed-In-Premiums, locking in a floor selling price while preserving upside potential.