When structuring a weather risk management program weather observations in the area of concern are often found to be unreliable.
Problem:
-Existing stations not seen as "safe"
-Existing weather stations reporting sporadically or late.
-Nearest available weather stations may be some distance away leading to an unacceptable amount of "basis risk".
Solution:
-Installation of a weather station specifically designed to meet the specific needs of the project at the exact location required.
-Historical analysis conducted using modelled data.
-Installed weather stations can be used for primary settlement, as back-up station(s), or as part of a quality control program used for the creation of certified settlement data.
Speedwell has a deep understanding of what protection sellers require to be comfortable with a weather risk transaction. Independent third party confirmation of observations, readily accessible observations for tracking a deal and the transparency of methodology are all key components for a successful project.
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