Governments across the world are encouraging energy companies to expand the contribution of renewables to energy needs. This reflects not only the increasing political will to combat climate change, but also the need to reduce reliance on fossil fuels which are often imported, whose supply is depleting and which are subject to significant price volatility.
As a result, the renewable energy industry continues to grow and is one in which CNA Europe has been intrinsically involved from its beginnings.
The nature of risk in the renewable energy industry can vary significantly from more traditional energy generation and specialist knowledge is required to meet the risk management requirements.
CNA Europe has brought together a team of experts combining both insurance and engineering experience to meet these challenges. The team’s practical knowledge of the renewable energy industry is the differentiator for brokers and their clients.
A leading European energy producer planned a major wind farm project in Scotland. Before they even started construction, the energy company, together with their broker, approached CNA Europe to become part of the planning process, knowing that our expertise in this field and valuable input as a specialist insurer could contribute significantly from a risk management perspective.
This partnership led to CNA Europe’s involvement in each key stage of the project’s development. What followed was an example of how an insurer’s specialist knowledge can have a real bearing in maximising the value that risk evaluation, mitigation and transfer can bring to a major project. Participating from the outset in project design, incorporating ground-up risk management planning, the overall cost of risk, including insurance premiums, was allocated optimally.
CNA Europe was able to provide unique insight into the selection of contractors, suppliers and manufacturers, while integrating an evaluation of risk in each case. Even the plant procurement and contract specifications came under scrutiny; leading to the integration of specific stand-by and spare part planning within the insurance programme.
The result of this partnership and the client’s professional risk management approach was that CNA Europe was appointed as lead insurer. The project-specific insurance package that was developed took into account the value of all the contingent planning, leading to considerable efficiencies in terms of overall cost of risk and therefore a reduced insurance premium.
Onshore wind projects, such as this case, are a major contributor to total renewable energy generation, however, skills at CNA Europe encompass the wide array of alternative energy generation and our teams are well equipped to help with renewable energy risk - in all its forms.
Contact Us