May 8, 2011, New York & London – GCube, the leading provider of insurance services for renewable energy initiatives, has teamed up with South African underwriter, C&G, to collaborate on underwriting new renewable energy projects in South Africa.
With the South African government in the process of overhauling its energy infrastructure as part of the Integrated Resource Plan (IRP), and thereby decreeing that renewable energy must be responsible for 42% of new power projects, there is rapidly emerging market need for a solution that facilitates expansion in renewables through appropriate risk management.
The new partnership will boast a total capacity available of just under ZAR4 billion, making it the largest such collaboration of its kind for renewable energy insurance in the world. It will ensure that developers and brokers in South Africa will have access to sufficient insurance capacity for all local projects while gaining the benefit of lessons learned in other markets to reduce risk in their projects.
“The sustained market growth in renewable energy around the world has not been without its challenges” said Fraser McLachlan, Chief Executive Officer at GCube. “South Africa has for many years been reliant on its own natural resources for the production of energy. However, it is encouraging to see a more diverse mix of power generating assets being considered for this important region.”
“By working with our trusted partner C&G in South Africa, an important emerging renewables market; we aim to create a unique framework to mitigate against such project risks to enhance a project’s viability, delivery and bankability.”
“With South Africa on the cusp of significant renewable energy investment, we partnered with GCube to ensure that we can both assist in driving the market from our respective areas of expertise, said Mike Robson, Managing Director of C&G in South Africa.
“Through our partnership, we aim to create a relationship between GCube and C&G that addresses the importance of providing quality insurance products that are specifically designed for the renewable energy sector. This will make this a unique offering in South Africa”.
“The benefit will be the shared experience of GCube as leading insurer for renewable energy coupled with our knowledge and expertise of the regional Southern African construction and engineering market”.
GCube and C&G will be exhibiting at AFRIWEA at the International Convention Centre in Cape Town from 9 – 11 May 2011 in Cape Town.
C&G is a leading Southern African specialist engineering insurance underwriter with more than 200 years of engineering insurance experience, an intimate knowledge of the Southern African conditions and requirements and with close working relationships with all the leading construction companies and specialist engineering insurance brokers in Southern Africa. C&G Underwriting Managers is a registered Financial Services Provider (FSP number: 30114) Visit their website at http://www.engineeringunderwriters.co.za