the insurance-debt nexus
TRANSCRIPT
The Insurance-Debt Nexus: Can risk policy make tidal power bankable?
Joe Hulm: All-Energy, SECC Glasgow, 4th May 2016
• MSc Energy, Environmental Technology and Economics• Over 8 years in tidal power project development
[email protected]: +44 777 55 22 913
Mind The Gap
• Think outside the equity box
• OEM v Project Developer
• Can risk policy make tidal power bankable?
Post-Crash Debt
• Gramm-Leach-Bliley Act 1999
• Transactional Insurance Products
• CDS + CDO = WMD
• Need risk policy for productive lending
Policy
Insurance
Debt
Equity
The Insurance-Debt Nexus
“Variable Annuity”
Loss of revenue is offset by business interruption insurance
Predictable intermittency Variable baseload
Section 4.4 “Create an EU insurance fund to underwrite demonstration project risks”
Commissioned by DG MARE with Secretariat from Cefas
Finance Group Co-chairs from Ocean Energy Europe and The Crown Estate
30 MW multi-turbine commercial project – collaborative structure
Likely ‘case study’ project for MSc thesis
Discussing research methods and future impact on financing
Why Tidal?• Own area of expertise in project
development
• Physics of the fuel type provides “variable annuity”
• Contractually flexible and young market
• Application to other projects both on and offshore?
