The contention comes at a critical time for the North American wind and solar markets, as the use of energy storage facilities gains momentum, despite the high profile battery fire at a small wind farm in 2012.  The total loss to property and the interruption of business is in the vicinity of $30 to $50 million, much of which is addressed by insurance.

While the exact cause of the fire is still under investigation, many expect the precise details of the incident will remain unknown. 

However, what has quickly become apparent is that while it may never be clear exactly how the fire started, the incident went undetected and destroyed the building and its contents because there was no fire detection, alarm and suppression system.

“Given the ambitions by owners and operators to install and operate similar energy storage devices to help better manage the flow of electricity to the grid, this finding is particularly significant,” says John McLane, President, GCube Insurance Services, Inc.

“When managed, maintained and operated effectively, energy storage technology presents a clear and growing opportunity for the wind and solar energy markets.  And, despite the record size of the insurance claim, it’s a technology that we will continue to support and back,” he added.

“However, in order to ensure that such technology remains both viable and effective, an established system of procedures and routine checks need to be regularly carried out, with the system carefully monitored, in order to help mitigate against future industry loss.”

According to GCube, while the establishment and development of these standards will require initial industry investment, without further action, future growth of renewable energy could be further curtailed if there is a repeat of this event.

Fraser McLachlan, Chief Executive Officer, GCube Underwriting Ltd., added, “Make no mistake, our insurance policies are in place to help enhance and protect all forms of renewable energy assets.  A fundamental part of this business is therefore about supporting the industry and paying claims.”

“While the battery fire loss was large and unexpected, that is the very nature of our business.  It’s imperative that we work directly with the market to establish and drive new industry standards, over and above simply having the ability to write a large check.”

With over twenty-five years of experience, GCube currently safeguards and protects over 30,000MW of renewable energy assets currently in operation and under construction around the world.  To date, its experienced, in-house team has paid out in excess of $200 million in claims.

In 2012, GCube secured $175 million in additional construction underwriting capacity to assist the development and evolution of the emerging biomass and geothermal energy markets. 

This, combined with a significant partnership deal struck in 2012 with Munich Re, has seen the business open up new insurance lines and enhance its existing dedicated renewable energy insurance offerings.

About GCube

GCube is the leading provider of insurance services for renewable energy projects in wind, solar, biofuels and biomass, geothermal, wave, hydro and tidal around the globe. 

Its specialized focus and robust underwriting authority offers unparalleled property and liability insurance coverage for all construction and operational risks. With over 25 year’s experience in the renewable energy sector, GCube understands the unique exposures of these power generation projects and assists its clients in identifying, quantifying and mitigating risk efficiently and economically while helping them achieve their business objectives. 

To learn more about how we can support your insurance coverage requirements, please visit our website at www.gcube-insurance.com.

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Erin Gill of Windpower Offshore interviews GCube Head of Offshore, Jatin Sharma March 21, 2013

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St. Louis, MO

May 5-8, 2013

Chicago, IL

As manufacturer and developer ambitions escalate, Eastern European wind energy projects are becoming increasingly ‘bankable’. That is according to GCube, the leading provider of underwriting services for the renewable energy industry projects.

The assertion comes as GCube announces that it will insure EP Global Energy’s development of an 80MW project in Chirnogeni, Constanta, Romania. The project, that will use Nordex N90 2.5MW turbines, and is the German manufacturer’s largest order to date, is supported by a number of key financial institutions including the European Bank for Reconstruction and Development (EBRD).

With austerity measures perpetuating the slowdown in the Western European wind energy industry; project developers are looking to the former Eastern Bloc and new EU member nations for future opportunities.

And as many of these countries look to renewable energy to meet pan-European 2020 low carbon targets, so the political support for these projects has started to stabilise. In recent months this has led to increased investor confidence and bankability in the region.

“There seems to be little doubt that within Europe, the focus for 2013 will be set on looking to the East,” said Fraser McLachlan, Chief Executive Officer, GCube.

“While we have seen some instability in the political support for renewable energy in some region, Bulgaria’s announcement last week on renewed plans for green energy, and increasing certainty in the Romanian market, have shown significant promise. Something that ultimately, will ensure that the next twelve months are a little more favourable to investors.”

“At GCube, we’ve been firm supporters of Eastern European wind energy since 2008, when we insured the first phase of the Fantanele-Cogealac wind farm – Romania’s largest wind energy project to date.

“However, the EP Global Energy project that we’re now supporting is a testament to shifting investor attitudes. Particularly given the number of financial institutions on board, which include the Marguerite Fund, the EBRD – with syndicated support through ING, Erste and Unicredit – and the EnerCap Power Fund.”

Mr Efthyvoulos Paraskevaides, Chairman, EP Global Energy commented: “Since our inception in 2006, we’ve remained focused on developing renewable and conventional energy projects in key emerging markets. This includes the Balkans and the Middle East.

“The 80MW Romanian project underlines this commitment and enables us to continue to develop quality projects that offer the best possible mix of power and electricity to the grid, set against the best possible investment returns. We look forward to working with GCube and new European member states as we collectively seek to decarbonise energy supplies in the future.”

GCube will be attending the European Wind Energy Association conference in Vienna, Austria from 4 – 7th February 2013.

About GCube
GCube is the leading provider of insurance services for renewable energy projects in wind, solar, biofuels, wave, hydro and tidal around the globe.

Its specialised focus and robust underwriting authority offers unparalleled property and liability insurance coverage for all construction and operational risks. With over 25 year’s experience in the renewable energy sector, GCube understands the unique exposures of these power generation projects and assists its clients in identifying, quantifying and mitigating risk efficiently and economically while helping them achieve their business objectives.

To learn more about how we can support your insurance coverage requirements, please visit our website at www.gcube-insurance.com.