The Geneva Papers on Risk and Insurance Issues and Practice

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

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Table 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 (%)3.3801.721.162.201.063.041.982.04
Indicative ratingBaa2A3A2A3A2Baa1A3A3
Average DSCR2.001.871.911.781.871.821.731.78
Minimum DSCR1.501.371.371.291.371.291.271.29
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