Managing wind and solar energy risks
The world over, industrial sector growth and economic expansion have put tremendous strain on fossil fuel resources and the environment. Governments and corporations have been investing heavily in renewable energy sources, above all wind and solar.
Yet new technologies come with a new set of risks. The construction of solar or on- or offshore wind farms is a complex undertaking. Demanding technical requirements, construction risks, high costs and extreme weather conditions are just some of the challenges these projects typically involve. We work together with our clients to understand and manage such risks and ultimately insure them.
A long-term investment
The viability of wind or solar power depends on large-scale, long-term investment. As renewable energy generation continues to grow globally, so does the financial risk posed by the inherent volatility of the resources that make it possible. This risk affects not only renewable energy producers, but also an ever-increasing number of players throughout the value chain.
As new technologies and exposures evolve, Swiss Re develops customised, index-triggered protection products that safeguard against loss of income due to adverse high or low wind conditions, lack of solar irradiation or variations in water levels. A case in point is the Solar Irradiation Index, an annual insurance product, which protects photovoltaic plant operators against a financial loss if solar irradiation is less than expected. We're at the forefront of technology to advance sustainable energy solutions.
Solar Code of Practice
Many solar panels carry a twenty-five -year guarantee on the amount of energy they produce. But who pays if the panels fail to fulfil their promise five, ten or twenty-five years down the line? The Solar Panel Code of Practice (SPCoP) addresses these concerns. It sets out international guidelines on how to manage risks and offers sustainable options for solar panel warranty insurance.
Offshore Code of Practice
The construction of an offshore windfarm is a complex undertaking. The Offshore Code of Practice (OCoP) helps insurers and project participants reduce their risk exposure and ensure project quality.