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Risk Management

Risk Management

Manage the risks of a renewable energy transition while mitigating those associated with business-as-usual procurement

A major hurdle in the renewable energy procurement process is obtaining sign-off on from risk-averse economic decision makers, who often consider renewable technologies such as wind and solar to be inherently more risky than traditional generation sources.

Acknowledging that there is risk inherent to any large-scale operational changeover, it is critical to understand that business-as-usual procurement is inherently risky from both a price and resiliency standpoint. Procuring renewable energy is intended to help mitigate these existing risks rather than create new ones.

Implementing an expertly managed renewable energy portfolio allows electricity end-users to lock in long-term, fixed price contract(s) for a fluctuating commodity, ultimately reducing financial risk as compared to business-as-usual energy procurement. To achieve this result for our clients, CFR leverages sophisticated industry knowledge along with available market data to analyze trends, generate forecasts and ultimately ensure that each client’s solution(s) meets pre-determined risk-return standards.

Risk identification and mitigation is a constant thread throughout each client engagement. Our activities during each stage include:

During strategy

During strategy:

Assess the client’s business-as-usual (BAU) energy supply to identify existing risks, understand the client’s desired risk-return profile and develop a potential portfolio of renewable energy solutions that best addresses them.

During implementation

During implementation:

Conduct in-depth financial, technical and market risk analysis including supply and demand modeling, transmission and congestion study assessment and pressure tests of assumptions via probabilistic and sensitivity analyses. Evaluate non-price factors such as developer and financial counterparty track record and support contract negotiations, ensuring clients receive the best value deal and no unforeseen development setbacks occur.

during optimization

During optimization:

Monitor ongoing project performance and take actions to reduce financial risk and volatility.

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