Specialist Insurance for Hydroelectric Power Projects
Hydropower facilities rely on the controlled movement of water to generate renewable electricity, bringing together specialist generating equipment with civil engineering, waterways and electrical infrastructure.
This creates a combination of risks quite different from those associated with other forms of renewable energy.
From run-of-river schemes and small hydro installations to larger hydroelectric facilities, the performance of a project can depend on water availability, the condition of turbines and generators, and the integrity of structures such as intakes, channels, weirs and penstocks.
At Network Alliance Brokers, we arrange specialist Hydropower Insurance for businesses involved in the ownership, development and operation of hydroelectric projects.
By understanding how an individual scheme operates, its location and the infrastructure it relies upon, we can help identify insurance solutions suited to the particular exposures involved.
Understanding Hydropower Insurance
A hydroelectric scheme involves much more than its turbine. Water must be safely captured, channelled and controlled, making the surrounding civil works just as important as the mechanical and electrical equipment.
Insurers may consider factors including watercourses, flood exposure, turbine design, generating capacity, equipment condition, maintenance arrangements and associated infrastructure.
Accessibility is also important. Damage in difficult-to-reach locations can make repairs more complex and extend the period a facility is unable to generate electricity.
Who We Work With
- Hydroelectric Plant Owners and Operators
- Hydropower Developers
- Small Hydro and Run-of-River Projects
- Independent Power Producers
- Renewable Energy Investors
- Landowners
- EPC Contractors
- Operations & Maintenance Providers
Key Risks Facing Hydropower Projects
Flooding & High Water Levels
Water is fundamental to hydropower generation, but unusually high flows and flooding can also present a significant risk.
Extreme conditions can damage buildings, electrical equipment and supporting infrastructure, while excessive water flow may introduce additional debris and place pressure on structures across the site.
Turbine & Generator Damage
Turbines and generators sit at the heart of a hydroelectric facility. Mechanical or electrical failure can prevent a scheme from producing electricity and may require specialist engineering work before generation can resume.
Regular inspection, servicing and condition monitoring can play an important role in identifying deterioration and maintaining reliable operation.
Debris & Damage
Branches, rocks, sediment and other material carried by waterways can enter or obstruct parts of a hydropower system.
Screens and intake systems can help manage this exposure, but blockages or debris impact can still damage equipment, restrict water flow and interrupt normal operation.
Civil Infrastructure
Weirs, intakes, channels, penstocks, pipework and other structures may be essential to controlling the movement of water through a hydropower facility.
Damage or deterioration affecting this infrastructure can require significant repair work even where the generating equipment itself remains undamaged.
Electrical & Control Systems
Hydropower facilities depend on more than mechanical generation.
Transformers, switchgear, cabling, control systems and grid connection equipment all play a part in getting the electricity produced by the facility into the network.
Failure or damage affecting these systems can therefore result in operational downtime.
Interruption to Generation
Physical damage to a turbine, intake, penstock or other critical component may leave a hydropower facility unable to generate electricity while repairs are completed.
Where an insured event causes an interruption, Business Interruption Insurance may provide protection against certain resulting financial losses, depending on the terms and conditions of the policy.
Your Hydropower Insurance Questions Answered
What types of hydropower projects can be insured?
Insurance can be considered for a variety of hydroelectric installations, including smaller hydro schemes, run-of-river projects and larger generating facilities. The insurance required will depend on the design, scale, location and operation of the individual project.
What information might insurers need about a hydropower facility?
Insurers may request details about generating capacity, turbine and generator specifications, the watercourse, flood exposure, civil infrastructure, maintenance procedures and previous claims. Information about intake systems, penstocks and other key structures may also be required.
Can insurance cover hydropower projects during construction?
Yes. New hydropower developments can require protection while civil engineering works, equipment installation and commissioning are taking place. Once the facility becomes operational, its insurance arrangements can then reflect the different exposures associated with ongoing electricity generation.
Why Choose Network Alliance Brokers?
Hydropower projects combine renewable electricity generation with mechanical equipment, electrical systems, waterways and often substantial civil infrastructure. Understanding how these elements interact is important when presenting a project to insurers.
At Network Alliance Brokers, we’ll build a detailed picture of your facility, from its generating equipment and water management systems to its maintenance arrangements and wider infrastructure.
We can then approach appropriate insurance markets and help arrange protection that reflects the individual characteristics of your hydropower project, while continuing to support you as your requirements develop.
Discuss Your Hydropower Project With Our Team
From smaller run-of-river installations to established hydroelectric facilities, Network Alliance Brokers can help you explore insurance solutions designed around your project, infrastructure and operations.
Contact our team today to discuss your Hydropower Insurance requirements and find out how we can support your renewable energy project.
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