Current State and Future of the Proxy Revenue Swap in Financial Markets

Rob Whitacre

Whitacre Revenue Swap

I am studying the current state and the future of the proxy revenue swap. This is a financial instrument that currently involves insurance companies, wind farms, and investment firms. The proxy revenue swap is a hedge product that protects wind projects against the risks of intermittent wind resources. I am interested in the current volume of this transaction as well as how the volume of the proxy revenue swap will be able to increase in the future.


I think that this is important because I believe in order for there to be substantial change in the way people consume to help the environment, there needs to be a strong economic component. The proxy revenue swap has the potential to play a part in making the sustainable energy option more economical, which should result in more widespread sustainable energy practices.


I will go about this research through looking at similar financial instruments and how they either succeeded or failed in growing in volume. There are a few weather related financial instruments on the market that will be a very valuable resource for me. I will also be talking to experts involved in some of the deals that have been done in the past and getting their opinion on the currents and future states of the proxy revenue swap.


My main goal for this project is to see if the proxy revenue swap can realistically be a means to make sustainable energy options more economical. If I conclude that it cannot be a major factor in sustainability, then I will change the focus of my project to why environmental financial tools are not the best way to increase sustainable energy use. If I conclude it can have an impact, then I want to configure a blueprint that will help increase the volume of the proxy revenue swap effectively.