24 March 2016 Insurance

GCube expands its portfolio of Irish wind energy assets

GCube Underwriting, the specialist renewable energy insurer, has expanded its portfolio of underwritten Irish wind energy assets, now surpassing 1GW of operational wind farms and construction sites throughout the Republic of Ireland and Northern Ireland.

Furthermore, the insurer now underwrites 300MW of wind capacity developed and operated by Irish firms in emerging markets overseas.

Just under a quarter of the total electricity demand was met by wind in 2015. Current installed capacity stands at 2.4GW, and continued investment to 2020 and beyond will see this figure rise further in the coming years, according to GCube.

However, it said that despite this growth, an uncertain political landscape in the run up to and following the recent General Election, combined with rising community opposition to onshore projects, means that there can be no complacency amongst Irish developers and operators and has encouraged key players within the industry to explore alternative opportunities.

Specifically, recent moves to start taking advantage of offshore wind potential in the Irish Sea have attracted the attentions of the finance and investment community, according to GCube, while Irish-parented developers continue to make headway in emerging markets overseas, including Latin America and Africa.

It said that in territories further afield, such as Latin America and South Africa, where market-specific concerns related to transport infrastructure, grid constraints, local content and regulatory and political risk enter the equation, GCube has used its expertise and specialist policies to support Irish developers on a number of first-in-country projects.

“Irish wind energy is a success story – not just because of its achievements within the competitive domestic electricity market, but also as a result of a capacity to export its experience and lessons learnt internationally,” said Phil Pavey, senior underwriter, GCube Underwriting.

He added: “In doing so, however, the industry inevitably becomes exposed to new risks. The challenges involved in operating in overseas markets in Latin America and Africa – or in entering a new sector like offshore wind – are rather different.

“Additionally, stretching a firm’s resource over several territories can impact on the ability to manage financial and logistical risks even in the domestic market.”

Pavey said that as Irish wind proliferates around the globe, safeguarding its reputation as a bankable, investment-grade asset at home and abroad with market-specific insurance support will be a key part of cementing this growth.

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