Bermuda-based Nephila Capital has provided the risk transfer capacity for a wind variability hedge at New York State’s first community-owned wind farm, Black Oak Wind Farm.
The project is currently raising finance, targeting New York residents and companies.
It sought a hedge against the financial risks posed by weather variability which could smooth earnings volatility. Nephila Capital has provided a weather risk management product that allows Black Oak to transfer the risk of lower than expected wind volumes or wind performance.
Nephila worked with REsurety to structure the wind hedge, a firm that provides proprietary technology and analytics for such deals.