A Queensland gas-fired peaking generator needed a financial hedge in place ahead of plant commissioning, to convert volatile, buyer-nominated dispatch revenue into predictable cash flow.
Dispatch is buyer-nominated rather than continuous, which makes a standard fixed-price swap unsuitable. If the buyer did not call for dispatch, the generator could owe a swap payment with no matching spot revenue to offset it.
We structured the hedge as a contract for difference against the relevant regional five minute spot price rather than a fixed swap, removing dispatch-assumption risk. We added buyer nomination rights with a short notice window, set the term and a monthly volume cap to match the plant's realistic operating envelope, and ran a tiered counterparty process across the active Queensland peaking-hedge market to create genuine competitive tension.
A clean, bankable hedge structure with unambiguous settlement mechanics, a credible counterparty shortlist ranked by genuine appetite, and a structure the client's board could sign off without further negotiation on the core mechanics.