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JLT pioneers renewable energy insurance cover

The Philippine Star

MANILA, Philippines – Global insurance broker Jardine Lloyd Thompson (JLT) has pioneered in the Philippines a facility that will provide small to mid-sized renewable energy (RE) developers security from a number of project risks to be able to obtain loans.

The Renewable Energy Insurance Facility, which covers RE projects of up to 50 megawatts (MW), is the first of its kind, JLT regional managing director Stephen Boddington said during its launch late Tuesday.

“We haven’t done this anywhere else. We’re pioneering in the Philippines the facility approach,” he said.

The JLT official noted the country is currently experiencing a RE boom but small projects find it hard to take off because of difficulty in securing loans due to risks.

With the latest offering, RE projects ranging from one to 50 MW will be insured from construction and operational phases.

In his presentation, former Department of Energy (DOE) Secretary and Merrit Partners chairman Vince Perez said “small RE developers don’t get the credit and recognition they deserve.”

This is because a lot of banks are not familiar in lending to the RE sector because of the long list of government permits and the lack of familiarity with resource risk, he noted.

Despite being a former energy czar, Perez shared he experienced difficulty in securing permits and loans. He also heads Alternergy Philippine Holdings Corp., which developed the 54-MW, 27-tower wind farm in Pililia, Rizal.

This strong demand for RE developments despite significant risks in developing the resource prompted the company to launch  this kind of product in the country, Jardine Lloyd Thompson Insurance Brokers Inc. president and CEO Graham Edwards said.

“The Philippines is not everybody’s favorite country to insure because of the natural catastrophe exposure. Small power plants, projects do get different treatment compared with bigger power projects as well as face different challenges,” he said.

“The best way we can contribute is we identify the real need to take on small and midsize projects, get these projects in place and launched, and help generate clean power for the Filipino people,” Edwards added.

Under the country’s National Renewable Energy Program (NREP), the Philippines is targeting to have RE-based capacity of 15,304 MW in the next 15 years. 

As of November 2015, the DOE has awarded 617 RE service contracts (RESCs) with a potential capacity of 12,263 MW. Government data also showed there are 219 RESCs with a 5,013 MW potential capacity still pending.

DOE Secretary Zenaida Monsada said she accepted the position to head the agency because of the numerous contracts lined up for clearance.

 

ACIRC

ALTERNERGY PHILIPPINE HOLDINGS CORP

AS OF NOVEMBER

DEPARTMENT OF ENERGY

GRAHAM EDWARDS

JARDINE LLOYD THOMPSON

JARDINE LLOYD THOMPSON INSURANCE BROKERS INC

NATIONAL RENEWABLE ENERGY PROGRAM

PROJECTS

RENEWABLE ENERGY INSURANCE FACILITY

SECRETARY AND MERRIT PARTNERS

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