Hydro Power
People have a long history of using the force of water flowing in streams and rivers to produce mechanical and electrical energy. Hydropower is the largest single renewable energy source for generated electricity in the United States.
In 2018, electricity produced by Hydropower accounted for about 7% of total U.S. utility-scale electricity generation which is 41% of the total produced electricity from renewable energy sources.
We currently insure owners, asset management companies, developers, installers and contractors for their specific needs.
Our hydro insurance covers Hydro Power Plants from pre-planning through to the site being fully operational.
These risks are wide and various and can range from liability to transport of the components, to breakdown and physical damage both prior to and post-commissioning.
Hydro Insurance for Construction / Erection Phase
Employers Liability Insurance
Public Liability Insurance
Еrrors & omissions (E&O)
Contractors/Erection All Risks insurance
Delay in Start Up / Advanced Profits Insurance
Goods in Transit Insurance / Marine Insurance / Transport insurance
Environmental Liability Insurance
Legal Expenses
Reinstatement / Decommissioning Insurance – Alternative to a bond
Hydro Insurance for Operational Phase
All Risks Insurance Cover for Plant / Equipment
Loss of Revenue Insurance (Business Interruption cover)
Public Liability Insurance
Legal Expenses
Hydro Power Plants exposed to hydrological risk
Production risk
Hydro Power generation depends mainly on the amounts of water that are turbinated, which is driven by inflow, changes in reservoir levels and spillage.
The availability of the plants plays a role as well but is usually addressed in separate covers.
If power is sold at spot prices, this is a large contributor to the overall risk position, which FirstNRG through our A-rated insurers offers to hedge in traded power markets.
Risk solution and data requirement
The client provides all historical daily production data of hydropower plants to be covered.
FirstNRG through our A-rated insurers and the client jointly build an index that mirrors the power generation of those plants.
FirstNRG through our A-rated insurers offers to the client parametric risk transfer solutions that settle against that index.
Why hedge Weather Risk?
Cost Control – Integral part of effective and optimal risk management of volume and price risks across all businesses
Safeguard Revenues – Enables utilities to keep earnings promises to shareholders and the capital markets
Achieve Targets – Allows control over the ability to achieve business plan targets and improves the proficiency to plan capital investments
FirstNRG has secured not only tailor-made coverage for Hydro Power but it is also trusted by insurers to underwrite hydro and issue policies for the operational business. Based on this the whole quoting process is speeded up and allows competitive conditions for our clients in terms of the policy and the premium. FirstNRG works are “A” rated or better insurance companies and meet all requirements by banks and lenders.
Why Choose Us
We are experts in the renewable energy insurance field.
We work with A.M. Best and S&P “A" rated insurance companies.
Response to inquiry within 24 hours.
Insurance solutions for your project worldwide.
We understand your business.
We go above and beyond to make sure our customers are happy with the services we offer.
We make your renewable energy project more bankable!