Renewable Energy Insurance

The boom in wind renewable energy, be it onshore or offshore, will also drive massive investment in technologies. Examples of such developments are the ever-increasing size of wind turbine generators or the research for floating foundations. The expansion of this sector is venturing into more exposed locations either deeper offshore, or into more Natural Catastrophe prone locations onshore which increases the overall risks.

Swiss Re Corporate Solution insures wind power projects worldwide. With a team of leading experts, we have continuously supported the industry from its early stages. We have also accumulated a vast expanse of Renewable Energy Insurance knowledge to help manage your risk and provide the best solutions for corporates.

Solar technology, particularly Solar Photovoltaic (PV), is one of the fastest-growing sectors in renewable energy. Its modularity allows for projects of all sizes, from small rooftop installations to multimillion-dollar, megawatt-scale developments. The scalability, mass production, and falling costs of Solar PV have positioned it as a key element in the renewable energy strategies of many countries.

However, solar projects face significant risks, the most critical being exposure to natural catastrophes such as windstorms, hail, floods, and wildfires. Our Renewable Energy Insurance solutions are specifically designed to address these unique challenges by using advanced proprietary NatCat models and climate risk analytics to provide precise risk assessments.

In addition to natural disasters, solar projects are vulnerable to manufacturing defects, faulty installations, and damage during transportation, despite advancements in production techniques. Moreover, many new solar PV developments are being built in remote areas with limited insurance knowledge about the unique risks these projects face, leading to uncertainties which can affect long-term performance.

To help mitigate these risks, we offer customised insurance solutions beyond traditional coverage. This includes weather-related products such as parametric hail insurance and solar radiation hedging, designed to protect PV plant operators against unpredictable conditions.

Our goal is to holistically de-risk corporate projects, safeguard cash flow, and enhance its attractiveness to lenders and investors.

Battery storage projects are poised for rapid global expansion, with the market expected to grow 15-fold by 2030. Battery storage facilities are crucial in addressing the intermittent nature of renewable energy sources, such as solar and wind. These systems store surplus energy produced during periods of high generation, which can later be injected into the grid when demand peaks or to stabilise the grid. This capability is vital for ensuring a reliable and resilient energy supply in increasingly renewable-driven energy systems.

Today, battery storage facilities are often integrated during the early conception phases of solar and wind projects, creating hybrid systems that optimise energy generation and storage. Lithium-ion batteries dominate the market due to their energy density, performance, and declining costs. As a result, battery storage is becoming an essential component in increasing the share of renewable energy in the global energy mix.

As the technology behind battery energy storage systems (BESS) evolves, the complexity of associated risks increases. Key risk factors include:

• Battery Chemistry: Different battery types (e.g., lithium-ion, flow batteries) present varying levels of fire, environmental, and operational risks.
• Thermal Runaway: A critical risk in lithium-ion batteries, where overheating can lead to uncontrollable reactions, fires, or explosions.
• Energy Optimisation and Management: The integration of BESS for peak load shaving and grid stabilisation requires sophisticated management systems that must be insured against operational failures, cyberattacks, and unplanned downtimes.

At Swiss Re Corporate Solutions, we understand that the rapid growth of battery storage comes with a unique set of risks that require specialised knowledge and coverage. Our Renewable Energy Insurance offerings provide tailored solutions for BESS and renewable energy projects to help mitigate these risks.

As a trusted partner, we are committed to helping our clients not only manage but thrive in this rapidly evolving energy landscape. Our goal is to provide peace of mind and financial stability as you adopt innovative energy solutions.

• Contractor's All risk /Erection All Risks (CAR/EAR)
• Delay in Start-up/Advanced Loss of Profit (DSU/ALOP)
• Contractor's Plant & Equipment (CPE)
• Third Party Liability
• Operational All Risks
• Standalone machinery breakdown (Business interruption)

• Weather hedges 
• Parametric NatCat covers