Leading renewable energy insurer, GCube Underwriting has secured a new underwriting facility, led by reinsurer Trust Re, for the Middle Eastern clean energy markets.
GCube, supported by Trust Re and in partnership with two regional backers, has developed an additional US$95 million of underwriting capacity for new wind and solar projects in the region.
The first development to be completed under the new facility is a project forming part of the 1.8GW Ben Ban scheme, the largest PV development area in the world at 37 sq km. The site, situated in the governorate of Aswan in Egypt, comprises 41 plots, each with a power generation capacity of 20-50MW.
The development of the facility has been significantly driven by domestic policy in the Middle East. Egypt is seeking to source 20% of its energy from renewable sources by 2022, while Saudi Arabia has a target of 9GW of installed capacity by 2023. These targets owe their existence to the international movement to reduce dependence on fossil fuels, as well as the recognition of the need to diversify away from low oil prices.
In turn, foreign investors and project developers drawn to the region by this target growth form a major driving force behind the facility. Ambitious targets, combined with the region’s limited track record in developing utility-scale solar projects, have created demand from developers for comprehensive insurance solutions.
GCube’s facility will be deployed to manage project risks during construction and operations.
Ms Rosa van Reyk, Underwriter at GCube, said the Middle Eastern solar markets are showing significant potential, with a large pipeline of projects across the region. She said: “We see a strong opportunity to support the growth of clean energy in the region by providing a range of different underwriting services, with products that we’ve specifically developed from our experience of supporting the sector in emerging markets.
“By partnering with regional providers, we’re able to support such ambitious projects as the Ben Ban development, and we are continuing to work with our partners to make GCube’s coverage as comprehensive as possible, all of which will help to drive safe innovation in the renewables sector.”
“Since 2008, by establishing an Alternative Energy Department, Trust Re has been very confident about the investment and development of this sector,” commented Mr Kamal Tabaja, GCOO of Trust Re.
Trust Re covers the Middle East, Africa, Asia, Central and Eastern Europe, Southeast Europe, Russia and the Commonwealth of Independent States. M