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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.
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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 advisors, 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.
  • Tunneling 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 maximising 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.

Download now

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 advisors, risk engineers, brokers, claims advocates, project finance specialists, and former industry risk managers. Contact one of our hydropower specialists for support.

Michael Kolodner

Energy & Power Leader

  • United States

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