Renewables insurer GCube has appointed Geoff Taunton-Collins as a weather risk analyst and is rolling out its weather risk transfer mechanism across North America.
The company said the moves come in response to growing demand from US wind project and portfolio owners.
It said the transfer system works on a index trigger mechanism determined by on-site weather data records.
The product counteracts the financial impact of underperformance by providing payments to the buyer in the eventuality that wind speeds fall below an agreed threshold, GCube said.
GCube Insurance Services executive vice president Bill Hildebrand said: “The US is one of the most established markets for wind energy worldwide, with a great track record for long-term project performance.
“However, it’s fair to say that the industry was caught off-guard by the sheer scale of the climate events that have caused the recent low winds.
“The good news is that, as short-term weather and performance monitoring approaches have improved, so too has our ability to mitigate the impact of performance fluctuations on project revenues.”
GCube said it will demonstrate the benefits of weather risk transfer for US banks at its onshore wind risk seminar in Chicago on 19 July.
Image: Morgue File
