AES Solar Farms Now Have Insurance to Hedge Against Cloudy Days

(Bloomberg) -- Power-plant owner AES Corp. refinanced a portfolio of solar arrays in Arizona and Massachusetts -- and added an insurance policy to guard against cloudy days.

The insurance, called a solar-revenue put, guarantees minimum revenue for the 28-megawatt portfolio, KWh Analytics, a risk-management software firm that developed the instrument, said in a statement Wednesday.

The policy is backed by insurer Swiss Re AG, and this was the first time a solar-revenue put has been used for a refinancing. Terms weren’t disclosed.

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