Weather-risk cover for renewable generation
Source
- Ankur Capital, IBISA investment rationale (opens in a new tab)Renewable energy discussionPublished: 19 Aug 2024
The idea
Address variable conditions affecting solar and wind.
Why this is interesting
- Solar and wind output varies with weather, which affects project revenue. Weather-linked cover here serves a corporate or lender buyer whose expectations differ sharply from smallholder cover.
- The source is Ankur Capital explaining why it backed IBISA. This product line is an existing company’s offering described by its investor, so it is an example of an approach rather than evidence that buyers are unserved.
Possible starting points
Shortfall cover for smaller projects
Find out whether owners of smaller solar projects without in-house risk teams would buy simple weather-linked cover.
Lender-side risk view
Help lenders to renewable projects understand weather-linked revenue risk across their portfolio.
Questions to answer
- Is weather variability already priced into project finance, leaving little room for cover?
- Which data source would both the owner and the insurer accept as the trigger?