Glennmont Partners from Nuveen (Glennmont) has signed a hedging framework agreement with Vattenfall for its 211MW Piiparinmäki wind farm.
An original hedging framework was agreed between Glennmont and Vattenfall in first quarter 2023, allowing the Piiparinmäki site to enter short term hedging transactions based on Futures Contract prices.
The deal was agreed in line with Glennmont’s Energy Portfolio Management strategy, which allows it to proactively manage the merchant exposure of its renewable energy assets.
Piiparinmäki is Finland’s largest operational onshore wind farm and one of the largest unsubsidised onshore sites in Europe.
“We are pleased to announce this hedging framework agreement with Vattenfall – a trusted utility provider and market leader in renewable energy,” said Glennmont Partners chief executive Joost Bergsma.
“The agreement will ensure we lock-in anticipated returns from the Piiparinmäki project and provide security for our investors,” Bergsma added.
“By embracing proactive risk management and implementing hedging strategies, Glennmont aims to ensure the long-term stability and profitability of our Piiparinmäki project and our wider portfolio.
“These initiatives reflect our commitment to providing sustainable and reliable energy solutions in an ever-changing market landscape, as well as our unwavering commitment to innovation whilst seeking returns for our investors.”
Vattenfall head of Nordic trading Laurent Cheval commented: “Vattenfall is pleased to sign this hedging framework agreement, providing new possibilities for investors such as Glennmont Partners to manage the market risk of its renewable assets, and we look forward to continue working with the Glennmont team.”