GCube Underwriting has acquired a new underwriting facility for the Middle Eastern clean energy markets, to be led by reinsurer Trust Re.
The setting up of the new facility was largely driven by changes to domestic policy in the Middle East that encourage the expansion of the renewable energy sector and thus boosted demand for re/insurance capacity to back large scale solar power projects.
Energy underwriter GCube said it developed $95 million of insurance capacity to meet these growing market demands.
“The Middle Eastern solar markets are showing significant potential, with a large pipeline of projects across the region,” said Rosa van Reyk, Underwriter at GCube.
“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,” she said.
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.
The countries are moving to diversify away from low oil prices, as well as respond to growing international efforts to reduce dependence on fossil fuels.
The new facility will provide cover for a project forming part of the 1.8GW Ben Ban scheme, the largest PV development area in the world at 37km squared.
GCube’s facility will be deployed to manage project risks during construction and operations.
“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,” van Reyk added.