Renewables Battling Climate Change Need to Insure Against It (1)

Solar and wind energy companies are betting on a novel form of insurance to protect their assets against wild and volatile weather — the very type of climate risk they were set up to fight.

Renewable power projects can lose substantial revenue if the wind fails to blow, if clouds block the sun, or when a hurricane slams into expensive infrastructure. To protect against such climate-induced losses, many owners are turning to parametric insurance, a product providing rapid compensation when certain weather-related metrics are met. The downside is that if the pre-defined trigger is missed by even a tiny amount, ...