Hedged Solar in Texas Opens Door to World of Options

As project finance has become available for solar assets with financial hedges in Texas, sponsors that are bullish on the market have begun to explore innovative contract structures that preserve more potential upside for them while still providing comfort to lenders and tax equity investors.

Copenhagen Infrastructure Partners is one such sponsor, having financed its 240 MW Misae project in Childress County on the basis of a swap that effectively guarantees a fixed price for seven years followed by an arrangement known as a “collar” for a further three years.