SOURCE: GCube Insurance Services, Inc.
NEW YORK, NY--(Marketwire - Nov 7, 2012) - GCube, the leading provider of underwriting services for renewable energy projects, has launched an insurance solution to cover losses incurred by wind energy developers or contractors in the event of the cancellation of the Production Tax Credit (PTC).
A key Presidential election issue, the potential non-renewal of the PTC for wind energy projects has caused the US wind energy industry to see a substantial slowdown in equipment orders and new projects slated for 2013. With investors increasingly nervous, project capital for new developments has become progressively harder to secure. GCube's latest offering is designed to bolster market confidence for the remaining projects currently under development.
The PTC is scheduled to expire on December 31, 2012. In order to qualify for the incentive before the deadline, a developer must have each qualifying turbine in operational status.
GCube's PTC Coverage solution will provide operators with coverage if their projects face delays that cause them to miss the December 31st deadline, and the tax credit is not renewed; insureds will be reimbursed for the loss of the tax credit for the ten year period. Project delays that will be covered by the policy include, but are not limited to, force majeure, weather delay, inability of turbine suppliers to deliver on time, contractors' delay or third party default on supply contracts.
GCube offered similar PTC coverage in 2004, when the industry faced the same uncertainty of the PTC renewal and insured several projects under its program.
"The political uncertainty surrounding the continuation of the PTC has decimated US wind market confidence," said John McLane, President, GCube Insurance Services, Inc.
"By providing this additional security for wind energy developers, GCube looks to ensure that the market does not witness a capital flight, which would prohibit the future growth of the industry," added McLane.
AWEA estimates that without the continuation of the PTC, up to 37,000 jobs in the US wind industry will be at risk. Developers, investors, equipment manufacturers and the wider supply chain therefore need to have some safeguards for their future operations.
To learn more about the GCube PTC Coverage program, please visit our website at www.gcube-insurance.com/ptc or contact Michael Durning, Executive Vice President of Business Development at 610-563-4216 or email@example.com
GCube is the leading provider of insurance services for renewable energy projects in wind, solar, biofuel and biomass, wave, tidal, hydro and geothermal around the globe.
Its specialized focus and robust underwriting authority offers unparalleled property and liability insurance coverage for all construction and operational risks. With over 25 years of experience in the renewable energy sector, GCube understands the unique exposures of these power generation projects and assists its clients in identifying, quantifying and mitigating risk efficiently and economically while helping them achieve their business objectives.
To learn more about how we can support your insurance coverage requirements, please visit our website at www.gcube-insurance.com.