A
bank
can intermediate a swap between an
asset owner
and a
utility or fund
Three-party revenue swap structure
Asset Owner
Wants guaranteed revenue from their battery
Utility or Fund
Wants exposure to battery trading revenues
Bank
Intermediates. Earns a spread on the fixed leg.
Floating (ME BESS GB)
Fixed £/MW/yr
£55k/MW/yr
£56k/MW/yr
Bank's net position:
flat on the floating leg. Net income: £1k/MW/yr spread (£56k received − £55k paid).