Buyers, traders, investors, and others within the renewable energy industry seek risk management — and Mobius has the financial background and experience in commodities trading to provide you with tailored and actionable results.
In 2017, IRENA (International Renewable Energy Agency) observed renewable generation capacity increasing at an annual rate of 8% due to developments in wind and solar installations facilitating the popularity and adoption of renewable energy. The proportion of energy coming from renewable sources was 18% in 2008, and is projected to be 30% by 2022.
Risk management allows for an assessment of operational risks by accounting for the specific equipment an energy company might rely on. It makes these components of operations quantifiable for improved efficiency and consistency.
By exploring several “what if” scenarios, risk management validates business initiatives to project best-case solutions. Without it, companies may be blindsided by outcomes related to developing new products, opening new locations, or further investing in renewable energy.
Renewable Energy Credits
Renewable energy credits (RICs) reflect your company’s use of renewable energy and further promote the renewable energy market. Like any other tradable commodity, renewable energy necessitates risk management.
Those seeking energy credits are voluntary or compliance buyers. Organizations purchase energy credits for a variety of reasons; buying credits may cater to pledged emissions goals or meet growing consumer demand for greener companies, as ESG (environmental, social, governance) scores have increased in importance.
Compliance buyers seek renewable sources to accommodate government or industry regulations. For example, a utility company may need to provide proof that a certain percentage of electricity comes from renewable sources.
In some cases, an entity may produce its own. Mobius allows you to introduce renewable energy credits to your portfolio.
Renewable Identification Numbers
Renewable identification numbers (RINs) are the currency of the Renewable Fuel Standard and reflect a company’s compliance. Producers of renewable fuel generate RINs and those in the market may trade the numbers.
When fuel is produced, a RIN is created, and that RIN may be sold or traded to a buyer. Therefore, like other commodities, you’ll need the right blend of current market intelligence packaged in a tangible and digestible format in order to make the right trades.
Risk Management for Renewable Energy
Your participation in the renewable energy industry may not allow for scrutiny of data or the tracking of industry trends. That’s for us to do for you.
Consider other reasons to allow Mobius to address your risk mitigation needs:
- Renewable energy continues to compete with other cost-effective forms of energy. Fluctuations in the cost of solar panels and related infrastructure affects the market as a whole. You need someone to track industry costs and project advantageous solutions.
- Renewable energy technology is reliant on rare minerals, and most of these minerals are found in China. If Chinese ports were somehow impeded by natural disasters, this would impact the renewable energy market. You’ll need to project a number of “what if” scenarios to protect the future of your business.
- Much literature about windmills is positive, but people have complained about concerns for their sight and hearing. Furthermore, animal activists remain curious as to how wind farms influence natural habitat. These are just two examples of how outside factors can influence internal decisions and outcomes. You need outside consultation to protect your company and assets.
With so many elements to consider, how can your company take command of the renewable energy industry? Enter our risk management platform, RiskNet.
Renewable Energy — Risk Management Platform
Imagine if you could integrate a risk analytics platform with your internal revenue projections, market data, trade reporting, accounting, etc?
The good news is you don’t have to pour a ton of money into the ordeal. You just need to sit back while we streamline insight to your front, mid, and back office. Key employees enjoy access from a mobile device, laptop, office, or home computer with our cloud-based application
We celebrate our platform for its union of technology and intuition. It’s been co-developed by our commodity experts with years of combined experience to give you the complete picture.
Mobius is proud to have served an array of industries for the past 18 years. What started as consulting became the finest in risk management solutions. Leverage our experience in commodity trading and risk analysis to meet your business goals.
Contact us for renewable energy risk management and to learn more about our RiskNet platform.