“The start of construction of our largest wind project to-date represents a major commitment to growing our business in the US and specifically in Texas,” said Antonio Cammisecra, Head of Enel Green Power.
Financing for the project is through the Group’s own resources and is expected to enter into operations by the end of the year. Once fully operational, High Lonesome will be capable of generating nearly 1.7TWh annually and also avoiding the emission of an estimated 1.1 million tons of CO2 a year.
Enel has entered into a Proxy Revenue Swap for a 295 MW portion of the project with insurer Allianz Global Corporate & Specialty, Inc.’s Alternative Risk Transfer unit (Allianz), and Nephila Climate, a provider of weather and climate risk management products.
The PRS is a financial derivative agreement designed to produce stable revenues for the project regardless of power price fluctuations and weather-driven intermittency, hedging shape risk in addition to risk associated to price and volume.
Under this agreement, High Lonesome will receive fixed payments based on the expected value of future energy production, with adjustments paid depending on how the realized proxy revenue of the project differs from the fixed payment. The PRS for High Lonesome, which is the largest by capacity for a single plant globally and the first agreement of its kind for Enel, was executed in collaboration with REsurety, Inc., a leader in renewable energy risk management and information services.