TABLE 1
FROM:
Challenges of the Renewable Energy Industry Generate New Demands for Risk Advisory: How to Value an Insurance Package from a Financing Perspective?
Emmanuel Leblanc
BACK TO ARTICLETable 1. Insurance benefits on key risk indicators
| Optimized debt/equity ratio | No insurance 60/40 | Standard – BI 66/34 | Standard 66/34 | Political risk 70/30 | CER option 66/34 | Wind derivative 66/34 | PolR+CER option 70/30 | PolR+Wind D+CER option 66/34 |
|---|---|---|---|---|---|---|---|---|
| Default rate (%) | 3.380 | 1.72 | 1.16 | 2.20 | 1.06 | 3.04 | 1.98 | 2.04 |
| Indicative rating | Baa2 | A3 | A2 | A3 | A2 | Baa1 | A3 | A3 |
| Average DSCR | 2.00 | 1.87 | 1.91 | 1.78 | 1.87 | 1.82 | 1.73 | 1.78 |
| Minimum DSCR | 1.50 | 1.37 | 1.37 | 1.29 | 1.37 | 1.29 | 1.27 | 1.29 |
