The high volatility of energy markets makes risk management a critical factor for producers. That’s why at Axpo Iberia, we offer the experience and tools needed to help you manage market risk effectively.

With over 20 years of group experience in long-term markets and 20 TWh of energy traded in the Iberian Peninsula, both upstream and downstream, Axpo provides energy producers with:

• Trust with a future vision.

• Tailor-made products for new projects and technologies.

• Expertise in risk management.

• Environmental responsibility.

Our Origin and Structured Products department focuses on satisfying long-term needs in a customer-oriented environment.

Based on market forecasts and always seeking each client's most profitable and efficient option, our structured products provide security and allow for risk control. Our offerings include:

• Price hedging against fluctuations in key indices (OMIE, Brent, TTF, NBP).

• Guaranteed minimum income with floor closures or price bands (collars).

• Improved electricity contract prices with extendable contracts and bonus swaps.

• PPAs (Power Purchase Agreements) with medium- and long-term pricing structures, up to 10 years.

Price Hedging

Axpo Iberia was born in Spain as a trading company — it’s in our DNA. That’s why we continuously improve and offer various price hedging solutions.

The products we’ve developed will undoubtedly help you optimise your energy sales strategy in the market.

Risk Management Security

We are experts in managing market risks, as recognised by the Energy Risk Commodity Rankings, where we are ranked as the #1 trader globally.

Our products help you control risk amid constant price fluctuations. We offer a range of price hedging options across multiple markets, continuously innovating with new structures tailored to each client’s needs.

Short-Term Price Hedging

We offer attractive hedging solutions in this area, with flexibility in both structure and underlying assets.

We have fixed price structures with various alternatives, such as:

Base Load: 

• Allows you to fix the price of a particular volume of electricity for a specific period.

• Fixed price per MWh produced, so the producer receives a fixed price without incurring volume or peak risk.

• Contracts can be for up to 10 years.

Other options include Solar and Wind Profile Load, Peak Load, Multiclick, Percentage Closures, and Fixed Price. For more information, visit the Power page.

Long-Term Price Hedging

We are confident that our internal know-how (from other European subsidiaries), our trading desk’s experience, and our competitive edge in managing the most extensive portfolio outside incumbents will position us as market leaders in the medium term.

Tolling

In keeping with our innovative spirit, we’ve developed various risk management solutions for electricity producers. Among these, tolling has proven to be the most efficient for managing risks associated with cogeneration plants, covering price risks for all the raw materials a cogenerator is exposed to (gas, electricity, operational remuneration, and EUA).

This product ensures stable income throughout the contract via a pre-agreed fixed monthly payment, regardless of raw material prices and the coverage factor considered by the CNMC. This eliminates financial mismatches caused by CNMC payment mechanisms and market uncertainties affecting these technologies.

Options

We also offer financial options in various forms, durations, and underlying assets. Flexibility in structuring these transactions is one of our trademarks.

Our goal:

To cover the market risk perceived by our clients.

These products offer customised protections. We tailor risk coverage to your business's specific needs by setting price limits or more complex structures.

We are pioneers in negotiating options across all types of markets and have extensive experience adding value to energy commercialisation through these financial tools.

Benefits:

• Help manage market uncertainties.

• Require the payment of a premium.

• Allow you to take advantage of market opportunities while limiting risks.

• It can be adapted to a wide range of client requirements.

Minimum Price: A minimum price is set for a specific period.

At the end of this period, if the average price falls below the guaranteed level, Axpo compensates you for the difference, allowing you to benefit from any price increases that may arise.

Price Band: A price band is set for a specific period.

At the end of this period, if the average price falls between the upper and lower band limits, you receive the market price.

If the closing price exceeds the upper limit, you’ll pay Axpo the difference. If the price is lower, Axpo will pay you the difference.