Insurers are getting ready to provide coverage for investors as state subsidies are withdrawn.
Among the latest insurance news from Europe’s renewable energy industry are the plans from insurers that are being developed in order to help to provide protection to investors who are backing solar and wind power projects against the removal of vital federal subsidies.
The loss of the subsidies has been very painful for the industry for renewable energy in Europe.
The third largest broker in the world, Willis, is currently making insurance news taking part in advanced discussions with top insurers, including Lloyds of London. The goal of this effort is to be able to come up with a policy that will be able to give insurance companies the ability to protect investors in renewable energy and to give them the chance to offer it by 2015.
Backers in the renewable energy industry feel that this is crucial insurance news following the financial crisis.
The cover for financiers in these projects is being seen as absolutely essential, as it will offer a boost to the renewable sector at the same time that European governments have been slashing back their funding for programs after having taken a considerable hit during the financial crisis.
Authorities have been stating that part of the reason that support levels have been lowered is that there has been a considerable drop in the cost of solar panels. A number of governments have gone ahead to guarantee the continuation of subsidies for the full length of projects that are already in existence (a project lifetime is usually 20 years), but many have cut down on the support being provided to new projects that will come to a close after a certain date.
Equally, Spain and several other nations have caused considerable frustration among investors by making what have been labeled by some businesses as retrospective subsidy cuts. They claim that this is placing the project viability at a notable risk.
Speaking on this insurance news, the Willis head of political and trade credit risks, Andrew van den Born, has explained that the broker has recently been receiving a wave of inquiries over the last year from investors and lenders in the renewable energy sector who are seeking coverage against possible retrospective changes in federal subsidies.