Specialist renewable energy underwriter, GCube Insurance Services, has announced that it now provides coverage for over 4 GW of Canadian wind assets. This figure is expected to increase in the coming months with the strong construction pipeline for new wind infrastructure in the country.
As of last year, and following the installation of a further 36 new wind energy projects, Canada sits seventh in the world in terms of total installed capacity. At just under 12 GW, wind energy currently caters for approximately 5% of Canada’s electricity demands. However, the country has a long-term aim to reach a capacity of 55 GW by 2025, accounting for 20% of its total energy needs.
“We’re delighted to have reached this considerable milestone in underwriting a third of Canada’s wind market,” said Jatin Sharma, Head of Business Development, GCube.
“Despite the challenges it’s faced, we’re confident that the Canadian market’s goals are achievable, and that we will continue to see further growth in the sector. Experienced risk and insurance managers understand the importance of supporting their colleagues to reduce unscheduled downtime and sustain profitability. This peer group, notably those that are expanding beyond wind into solar PV, has taken the greatest interest in GCube’s technical reports, which analyse lessons learned, emerging risks and key claims trends.”
Extreme weather-related risks, such as the recent wildfires in Alberta, can pose a serious threat to renewable energy assets. GCube’s Cell, Interrupted report, released last month to the firm’s international community of insured clients and supporting brokers, reveals that close to 50% of all solar PV claims in the North American market can be attributed to extreme weather related events.
Over the past 25 years, GCube has provided developers, operators and investors with the necessary insurance services to mitigate these risks, ranging from all-encompassing Construction All Risks and Operation All Risks coverage, to tailored liability, transit and cargo policies.
GCube is further supporting Canadian project operators with its tailored Weather Risk product, designed to mitigate the impact of resource volatility, which has severely impacted wind operators in the U.S.
Filed Under: Insurance, News
Robert Echavaria says
Interesting, but I’m curious to what extent GCube has contemplated the intellectual property risk associated with renewable energy project deployment. In the past few years we’ve seen some sizable projects in UK offshore and US onshore hindered by patent infringement liability that went unchecked during the project finance due-diligence process. When Enercon sued Siemens,A2SEA and the project developers in the UK, it blocked Westermost Rough and Gunfleet Sands from starting construction and the litigation threatened to shut down London Array, a total of 5 Billion Euros of projects. Ultimately, the patent was invalidated, but there are over 50,000 globally filed patents related to wind turbine technology and most of them are not evaluated for the patent infringement risk they pose to a project or a particular turbine OEM.