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Solutions

Hydropower

Supporting more than 650 gigawatts of renewable energy projects worldwide, our team of global specialists understands the challenges you face and offers tailored risk management solutions at every stage of your project.

Comprehensive solutions

Access to global insurance markets, bespoke policy wording, and risk allocation strategies that suit your project partners and stakeholders.

Sophisticated risk modelling

Insightful data and proven proprietary modelling tools give you control, and help optimise your total cost of risk.

Deep expertise

Our advisers, engineers, brokers, claims advocates, and finance and commercial specialists will help you manage complexity and stay in control of your project.

Large-scale hydropower plants are an important source of electricity in many countries. As a sustainable, reliable, and low-carbon electricity generation source, hydropower can aid energy transition plans on a utility scale and via ”mini-hydro” schemes within communities.

Key risks for hydropower projects vary depending on the type of dam, its related components, and whether the project is operational or under construction. The key risk focus areas for investors and insurance markets include:

  • Location and on-site conditions. The power generation potential of a plant, the type and form of structures that need to be built, and the associated civil works that are required are all determined by the landscape and the geological conditions. Construction, operation, and ongoing maintenance of a plant and related infrastructure may be hampered by climatic and hydrogeological conditions, natural hazards, and site accessibility.
  • Tunnelling risks. During construction, the risk considerations relate to the complexity of the underground structures associated with the main aqueducts and diversion tunnels. Throughout the operational period, the key risks relate primarily to any unlined sections of the underground elements.
  • Natural hazards and seasonality. Project management and scheduling are key to maximizing construction activity, as some components require dry weather conditions. Sufficient flood design protection levels should be considered.
  • Equipment losses. High-value equipment, such as generators and turbines housed in a confined space, may be at risk of being damaged by a fire incident. Reduced generation due to extensive repairs or delays in replacement equipment increase the risk of business interruption and may cause significant financial impact for operators.
  • Environmental impact. Environmental impacts during the construction and operation of hydropower projects must be considered. For example, the project could affect the ecosystem of local flora and fauna, or exacerbate existing geological or tectonic risks. All of these risks should be captured in the environmental impact studies.

Read our full guide on risk management solutions for hydropower projects.

Marsh provides you with a tailored approach and comprehensive solutions

We understand that every project is unique. Our team will support you through each project milestone to optimise your risk management strategy.

Design

Position your project for success

  • Engineering support
  • Technology analysis
  • Loss modelling
  • Stakeholder management
  • Insurance budgeting

Construction

Get it built

  • Supply chain analysis
  • Health & safety strategy
  • Operational insurances
  • Hand-over to operations

Operation

Protect your assets and your business

  • Risk management framework
  • Captive strategy
  • Loss limit reviews
  • Specialist claims services
  • Decommissioning planning

Decommissioning

Close it out responsibly

  • Risk and liability review
  • Ongoing insurance

Our people

Our global renewable energy team includes insurance advisers, risk engineers, brokers, claims advocates, project finance specialists, and former industry risk managers. Contact one of our hydropower specialists for support.

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Jane Smith

Head of Energy and Power, Pacific

  • Australia

Jane Smith is the head of Marsh’s Energy and Power Practice in the Pacific. She has more than 36 years’ experience in the insurance industry and has worked with some of Marsh’s largest Australian and global clients. She has spent the majority of her career working in the energy, power, and utilities industry and has an excellent understanding of the issues and complexities in the sector. She spends the majority of her time utilizing her experience and expertise to help our major clients drive strategic outcomes. She is the recipient of multiple industry awards.

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Gemma Claase

Head of Renewable Energy, Energy & Power Practice

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA 23/205

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”