A series of seminars presenting weather risk management solutions to producers and investors of renewable energy were given in Mumbai and New Delhi this week. Hosted by Unison Insurance Broking Services in partnership with Cognivant Alternative Risk Transfer Solutions and Meteo Protect, France, the seminars focussed on overcoming the risks associated with wind variability and the importance of such solutions to the sustained growth of the renewable energy sector in India.
Paris, France – April 16, 2015 :
Comprised of a receptive audience from all stakeholder groups in the wind energy market in India, including developers, lenders, insurers and rating agencies, the seminars on “Analysis and Management of Wind Variability Risk” addressed global trends in wind risk management and provided an overview of the modelling process and wind risk management techniques.
The wind energy sector has traditionally been considered a high risk sector; average wind speed variations account for the bulk of risks (often as high as 90-95%) of overall production risks for wind farms, and can impact the financial performance of certain regions by 20%. Moreover, climate change has exacerbated both climate and temperature variability globally, affecting year-on-year revenues of many businesses that are highly dependent on the weather, including the wind energy market. Traditionally, credit lenders and investors have not been able to scientifically reassess the wind energy potential of a wind farm.. Accordingly, they have been conservative in providing for risk assessments in their financial simulations. A finetuned risk assessment and corresponding risk mitigation can further accelerate the growth of the sector.
Due to advances in meteorology, numerical simulation techniques, and data assimilation, wind variability affecting wind farms can now be assessed using weather risk modelling. A scientifically priced risk transfer solution - weather-based index insurance- can then be put in place. Weather-based index insurance for wind farms provides insurance coverage for a wind farm for a guaranteed capacity of wind energy.
According to Gabriel Gross, President and CEO of Meteo Protect, the keynote speaker at the seminars, “Given the significant focus of the current government to attract large domestic and foreign funds to the capital intensive sectors like wind and solar energy, it would be prudent for all stakeholders to not ignore the weather risks, as the share of renewable sector is set to rise in the overall energy mix in India (similar to trends in Europe), and this underscores the importance of better risk management for the sustainability and continued growth of this sector of the economy. We see India as a very important market given the high level of economic growth and its weather sensitive geography.
“Although the scale of existing index-based weather insurance schemes across the developing world are presently limited as a standardized solution for small landholding farmers who are impacted by climate-related risk, players such as Meteo Protect are committed to working with developing nations to help them adapt to climate change and mitigate the financial impact of weather risk by providing weather risk assessments and cost-effective weather hedging solutions customized to precisely meet each client’s needs, as well as supporting alternative energy production by providing insurance to wind and solar farm enterprises,” said Mr. Gross. “Along with our partners in India, Cognivant and Unison, we propose to bring the most innovative weather risk management solutions to the businesses in the Indian subcontinent.”
About Unison Insurance Broking Solutions
Unison Insurance Broking Solutions are one of the the largest independent, privately owned insurance broker in India. Unison’s primary focus is to give clarity on how the consequences of risk can impact a company's performance and also providing customized & comprehensive solutions that complement growth rates. Unison has been the winner of best broker award by Asia Insurance Review in 2012 & 2013.
Visit : www.unisoninsurance.net
About Cognivant Consulting
Cognivant Consulting provides an effective link between treasury & insurance solutions to businesses that are exposed to complex risks in diverse sectors such as renewable energy, agricultural inputs, construction, ports, power & infrastructure.
Visit : www.cognivant.com
For Meteo Protect:
: +33 (0)1 84 16 66 11
About Meteo Protect
Meteo Protect creates fully-managed parametric weather insurance products to protect businesses when the weather impacts their financial performance. A broker and underwriter based in Paris, and already active in eight countries, Meteo Protect covers risks anywhere in the world, and its solutions are supported by the largest insurers and reinsurers in the market. Meteo Protect is registered with ORIAS, and is member of CNCIF.
Visit : www.meteoprotect.com