Managing Merchant Markets
Bodecker Partner offers independent specialised revenue management to investors in Nordic renewable power production. We offer innovative hedging strategies and strive for a steady income and a fair return on capital to Investors. Our expertise within the Nordic power market and elcertificate scheme is first-class. As independent our incentives are completely aligned with those of our clients.
As Bodecker Partners do not have consumption portfolios under management, no netting practises exist. We act, on behalf of our clients, with a number of counterparties for market access. This means we are completely independent and strive for best possible instruments and prices in each situation.
We strive for a steady income and a fair return on capital to investors in renewable production
Normal process in our Revenue Risk Management is based on the following steps:
- Preparation: NDA is signed, production- and budget data is provided and Bodecker Partners analyse volume- and profile risks and delivers revenue forecast incl. current hedge levels/PPAs, open posistion and market prices.
- Risk policy & mandates: Bodecker Partners and client set up risk policy and propose hedging- and optimisation mandates for open position(s) in Nordic power, elcertificates and GoOs – to ensure revenue targets.
- Hedging strategies and counterparty set-up: Bodecker Partners propose long and short-term hedging strategies and plan for execution. We assist in opening up market access via several counterparties, incl. potential FEMA-agreements and collateral arrangements.
- Sales of power, certificates and GoOs: Bodecker Partners executes hedging and optimisation strategies on behalf of client. With our unique expertise in Nordic markets, and using different hedging instruments and counterparties for market access, we optimise revenues.
Take control of the electricity certificates
The price-hedging strategies of a producer differ significantly from those of a consumer, and the current low electricity prices increase the need for active management to capture temporary upsides. Throughout our careers, we have seen how power producers in many cases do not get an optimal nor customized management from their existing portfolio managers. Typically, in addition to the producer’s portfolio, a significantly larger retail portfolio is often managed. This diverts focus. Many portfolio managers also have owners with adverse interests that can collide with those of the customer’s portfolio.
In terms of analysis, we have seen that power producers in some cases are treated rather poorly. Advice and analysis reports are often based on consumption customers and lack focus on e.g. electricity certificates – something that is at least as important as the power price for a producer. Our recommendations are instead based on the interest of the producer and on how to capture the highest prices and optimize income and revenue.