Developers and owners of solar plants are learning to manage an evolving range of risks.
Design risks around core technology, especially the more commoditised photovoltaic (‘PV’) panels from established manufacturers, are giving way to more territory-specific risks as the technology deploys around the globe.
Some territories with favourable solar resources may be vulnerable to natural perils, testing resilience of equipment as never before, whereas others with more benign climates may pose political risk.
As the sector matures, the challenges of owning and operating large portfolios of aging PV plants will assume increasing significance.
WHAT WE DO
Our renewable energy team have experience working on all key technologies within the solar sub-sector and the typical contexts in which they have been deployed. These include:
- Photovoltaic (‘PV’) plants, from roof-top to utility-scale portfolios
- Concentrated solar thermal (‘CSP’) plants (trough and ‘power-tower’)
- Salt storage systems integrated with CSP plants to extend generating hours
- Established and prototypical applications (e.g. floating PV arrays)
- ‘First deployments’ in territories unfamiliar with solar projects.
Core insurance products that can be provided across the whole project development and operational cycle are:
Supplementary coverages include:
Our clients also receive the benefit of broad, lender-compliant, policy wording which we regularly review and update to ensure that we continue to offer the broadest cover generally available in the market. The policy is designed to encompass all of the core insurance coverages associated with the project development and operational cycle noted above.
Our renewable energy team has extensive international experience of providing insurance placement and advisory services to developers, asset owners and other key stakeholders, such as project financiers.
Our clients frequently engage us during the development phases of a project.
This ensures that we can provide guidance on insurance programme design well in advance of placement and take full account of insurance requirements that may be specified by lenders and other key stakeholders.
This also provides the opportunity to challenge on behalf of our clients any especially onerous requirements that such stakeholders may seek to impose.
PV Solar Plant (East Africa)
The project was developed in a country where project financing was a largely unfamiliar concept to key local stakeholder, including local insurance partners. It was also to be one of the first commercial scale renewable energy projects in the country. In addition, the project sponsor had limited experience of the country, the project to some extent serving as a learning experience in advance of future planned projects.
Our team was able to respond to the challenges posed by the project in a number of ways:
- Prior experience of country ‘firsts’ informed the team of typical obstacles that can arise in such situations (e.g. unfamiliar regulatory requirements)
- Extensive and early intermediation between all key stakeholders
- In-country broker partner able to arrange ‘local’ insurances, such as motor cover, and respond to ad hoc enquiries from the client’s local project team
- Selection of panel reinsurer with local insurance partner relationship to aid local policy issuance.
In combination these measures and capabilities minimised the frictional challenges faced by our client to the insurance aspects of the project.
In the unfortunate event of a loss, we have a specialist team of claims personnel who have deep experience in dealing with large and complex claims across every segment of the renewable energy industry.
We act proactively to manage the claims process and the other stakeholders involved such as lead underwriters, follow markets and loss adjusters.
The team has heavy involvement in the claims process whether this is regarding interim payments, the appointment of specialist experts or site visits.
Our claims team have strong relationships with the leading loss adjustors around the world and are able to recommend the best resources to ensure that our clients’ claims issues are managed by people that understand their business.