Weather Insurance for Renewable Energies

In order to fight climate change and achieve sustainable development renewable energies must take precedence over fossil fuels. Insurance companies can play an important role in the proliferation of renewables by offering risk transfer solutions that make investment in clean energy more attractive. Weather insurance protects against the unpredictable availability of natural resources (e.g. wind sun and water). This book assesses if weather insurance can be a business opportunity for insurers while simultaneously improving the financing of renewables. To answer these questions different business strategy frameworks are used to assess the attractiveness of the weather insurance industry. A demand and availability estimation of weather insurance is given as well as a hypothesis for a market growth pattern. Finally a theoretical explanation of the positive impact on renewable energy financing is presented. The conclusions and analyses in this book should be especially useful for investors lenders and insurers of renewable energy projects.