Renewable energy projects: Risk and insurance elements

Although the risk exposures faced by renewable energy plants are similar to those of other construction projects, the sector has unique needs arising from the untested nature of its technology and operational structure. James Green, Head of Renewable Energy at JLT, elaborates.

Historically, anybody wishing to build a renewable plant has often had to raise money through project finance. To do so off balance sheet in this way, you must demonstrate that whatever you are building is going to work, generating enough energy to pay the loan back.

It is in such circumstances that an industry still in its infancy requires solutions to encourage development. Viewing renewable projects from a risk and insurance perspective can provide a vital component in the process and a means of incentivising those involved.

Policymakers, developers and investors interested in renewable energy in the MENA or GCC region need their insurer(s) to provide solutions that smooth the process and protect hugely valuable physical and financial assets. But how do they source the correct and genuine expertise needed to understand the exposures unique to this market?

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Renewable energy projects: Risk and insurance elements (PDF 1.7MB)