Competitive power markets offer a unique opportunity to utilize storage as a physical hedge to serve financial firm obligations of a power hedge. On both a stand-alone basis or in conjunction with renewable generation, storage serves as a physical hedge that can secure the equivalent of a contracted revenue stream using over-the-counter hedges. This presentation provides a case study for operating margins and risk of renewable plus storage projects hedged with market forward contracts and compares the outcome relative to a long-term power purchase agreement. The analysis examines the optimal hedge ratio, reduction in risk, and the added premium of flexible storage serving as a physical hedge against spot market prices for both standalone storage and renewables plus storage. The comparison to PPA’s will be based on utility procurements.