You can’t know everything, so the sensible thing to do is to decide what topics you will ignore completely, saving your mental energy for everything else. Long ago, I decided that for me, large-scale finance is one of those topics.

When complex financial agreements or multi-faceted insurance hedging or polysyllabic micro-economic maneuvering comes up in stories I treat it like the Latin Mass, as a bunch of sounds that are important to others but that I don’t try to understand.

So I will not be able to encapsulate what is important about this story from Renewable Energy World describing a new financial structure. It includes the use of a “wind proxy hedge … utilizing the kWh Analytics Indifference Structure for debt sizing” the help finance a 59MW, 14-turbine wind project in Maine, which “marks the first time a parametric wind hedge has been paired with the kWh Analytics Indifference Structure to reduce equity requirements for a project sponsor.” That apparently means financial risk has been so muddled that developers can borrow more money. Something like that.

Good financing is vital for large-scale energy development, so this seems like a good thing. Probably. I guess.