We offer different types of products to energy producers:
1. Special regime hedging
Structured products whose variables are term, price and volume.
We purchase energy from producers for a pre-defined term through a hedging contract. If you need a tailor-made product, quote or information on existing products, contact us. Allow us to help you unlock value.
What are hedges for renewable producers?
These are products executed to guarantee market incomes for a certain term at a certain price based on current forward market conditions.
What are the advantages of closing hedges?
Hedging allows players to lock in price levels at a pre-determined level, reducing future uncertainty and therefore facilitating strategic planning. Effective hedging therefore allows producers to reduce the risk associated with price fluctuations in the spot market (OMIE) thus enhancing economic performance and facilitating decision-making.
Hedging is not just a tool for producers. Buyers can also use these tools to lock in price levels and avoid the uncertainty of commodity price fluctuations.
Does the producer earn money by closing hedges?
There is no certainty of winning or losing in the forward market. However, closing a price hedge reduces the risk derived from price fluctuations in the spot market (OMIE) on the producer’s economic performance.
Symmetrically, the buyer also reduces his risk, obtaining the energy at a certain price.
What does “financial profile” mean?
In the case of producers, the fact that products are financially settled does not affect their day- to-day operations. A producer will continue selling energy on the OMIE markets, maintaining a relationship with their aggregator, settling with OMIE and REE, etc.
What do I need to close hedges?
Complying with Endesa’s counterparty registration process is mandatory. Currently this process consists of KYC (Know Your Customer) process, in which we request general information about the company and a credit analysis.
What are the terms we offer for closing hedges?
Due to internal risk policies, all our products have a maximum term of 5 years. However, there is always the possibility of executing a “Rolling “Window”. As an example once in year 1, we can start negotiating year 6, always maintaining a 5-year window.
A tolling agreement is a financial product that locks in the margin for electricity generation assets.
For more information on environmental products, contact us. We are here to help.
3. Environmental products
National and international green certificates and CO2 rights. We provide co2 obligatory market and the voluntary market trading and carbon offset with this certificates:
· EUAs: CO2 emissions rights valid in the EU and equivalent to 1t CO2, assigned to a determined company.
· CERs: Carbon credits, from the Clean Development Mechanisms (CDM), that your business can acquire to offset CO2 emissions (when EUAs have been exceeded). This type of certificate is acquired from investments in projects related to sustainability in developing countries.
· VERs: Carbon credits, from a determined quality standard (for example: Clean Development Mechanism, Voluntary Carbon Standard, Gold Standard), that in addition to verifying carbon credits, contributes with sustainable development projects in disadvantaged countries.
For more information on environmental products, contact us.
Let's make greener energy together.