Basis Risk and Production Guarantees
- Most approaches excluce technical unavailabilities, grid operator cut-offs etc. (as not weather related)
- Depending on risk taker they also exclude losses covered by turbine manufacturer guarantee, enhanced credit questions etc.
- Technique gets involved as availabilities are read out of turbine's SCADA boxes
- Contracts are more complicate than simple wind speed derivatives BUT one receives a guarantee for return on investment
- Meanwhile also complete production guarantees including coverage of technical outage are available
- We highly recommend to seek professional advise before entering into these kind of agreements