Seattle-based 3TIER, a renewable energy risk analysis company, and Galileo, a weather risk management company, have collaborated to offer what they say are financial products designed to assist the wind power industry in hedging the financial risk of wind variability.
Galileo's WindLock product will provide on-site settlements based on 3TIER's wind resource data, enabling wind project developers and financiers to mitigate the risk of project underperformance.
Galileo uses 3TIER's wind resource time series to price and structure WindLock products based on expected variability with settlements based on wind speeds provided by 3TIER. According to the company, 3TIER's weather modeling services to generate historical time series helps avoid errors in on-site measurements and isolates wind speed from other factors that can impact power production.
