Energy company’s hedge agreement

IRISH renewable energy company, Airtricity has announced that it has executed a multi-year hedge agreement for its 126.5 megawatt Champion wind farm in Texas with Coral Energy Holding — a wholly owned subsidiary of Royal Dutch Shell.

The agreement provides Champion a hedge against declines in electricity prices and facilitates bank financing of the project while allowing it to earn more if electricity prices increase.

This represents the first Airtricity project in North America being constructed without the use of a traditional power purchase agreement.