Energetic Capital is proud to announce the successful close of its first policy covering offtaker default in connection with a 40 MW wind project in the MISO region. By collaborating closely with the project sponsor and a leading global financing bank, this policy addressed the unique credit risks associated with a virtual power purchase agreement (vPPA), unlocking critical funding to advance renewable energy deployment.
This transaction highlights the growing role of credit insurance as a flexible and impactful tool in clean energy financing. By mitigating risks tied to unrated or sub-investment-grade offtakers, credit insurance enables lenders and project sponsors to reallocate financial risk and achieve more favorable terms—similar to its use as a solution for challenging forbearance structures.
The deal also reflects broader market trends in power purchase agreements (PPAs), where diversification of offtakers and the rise of unrated entities are reshaping the market landscape. These trends were recently explored in our article, Corporate PPAs Hit Record High in 2023: Emerging Credit Trends Reshape the Markets.
Energetic Capital remains committed to providing innovative financial solutions that drive the clean energy transition forward. This milestone underscores the adaptability of our products to support projects of all sizes and structures in today’s evolving energy markets.
To learn more about this achievement and how our solutions can support your projects, reach out to our team or explore the full article here.
Comments