Renewable energy insurer GCube Underwriting has secured a new underwriting facility for the Middle Eastern clean energy markets led by Bahrain-based reinsurer Trust Re.
Supported by Trust Re and in partnership with two other regional backers, GCube has developed an additional $95 million of underwriting capacity for new wind and solar projects in the region.
Trust Re chief operating officer Kamal Tabaja, said: “Since 2008, by establishing an Alternative Energy Department, Trust Re has been very confident about the investment and development of this sector.”
The first development to be completed under the new facility is a project forming part of the 1.8GW Ben Ban scheme, the largest photovoltaic (PV) development area in the world at 37km squared, according to a press release.
The development of the facility has been significantly driven by domestic policy in the Middle East. Egypt is seeking to source 20 percent of its energy from renewable sources by 2022, while Saudi Arabia has a target of 9GW of installed capacity by 2023. These targets owe their existence to the international movement to reduce dependence on fossil fuels, as well as the recognition of the need to diversify away from low oil prices.
GCube’s facility will be deployed to manage project risks during construction and operations.
“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.”
“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.
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