Modern insurance solutions protect innovative technologies RENEWABLE ENERGY

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1 Modern insurance solutions protect innovative technologies RENEWABLE ENERGY

2 Your projects secure the future we ensure they happen Focus on the renewable energy sector has never been higher. Due to the increasing price of conventional energy, the importance of alternative energy sources has risen. The demand for renewable energy poses challenging risks for the power industry, for example, as a result of the use of innovative technology and the globalisation of projects. Global investment in renewable energy has soared over the past years, but parties will usually not invest in renewable energy projects unless they have detailed risk mitigation strategies in place. Insurance can rapidly develop into one of the largest costs items of a project but sophisticated risk management and insurance placement concepts reinforce confidence in the project and company. Aon has responded to this by creating a dedicated renewable energy team. We can support risk management and insurance programmes in wind (onshore and offshore), solar (photovoltaic and thermal), biomass, biofuel, small-scale hydro and geothermal. The team manages all facets of risk through the life cycle of a renewable energy asset, from development to construction and ultimately into operation. With our deep understanding of the market we are well placed to bring new, often prototypical, risks to interested insurers, ensuring our clients get the most comprehensive, innovative and cost-effective cover. Aon speaks the power industry s language. Our knowledge and understanding of the sector ensures that the best people engage with clients and the insurance markets. We make projects, technologies and risk mitigation comprehensible for all parties involved.

3 Aon the leading partner for risk management and insurance advice Our expertise Governments around the world are setting tough targets for the amount of energy provided by renewable energy, especially Germany where the government endeavours to phase nuclear energy out by Aon has been a specialist in this sector for more than 20 years. Aon s Power team has a dedicated resource of over 200 professionals servicing the power and utility sectors worldwide. Aon s renewable energy team is part of this global network that operates in more than 120 countries. Their expertise ranges from international covers, reinsurance solutions and equity protection instruments. Aon develops insurance solutions tailored to meet the specific requirements of the renewable energy industry, in collaboration with national and international risk carriers. Aon is a reliable partner and more than 1,500 clients from the power industry world-wide have placed their trust in Aon. The global power industry has insured approx. 100,000 megawatts through Aon. Aon provides expert support to project principals, contractors, suppliers and lenders throughout the life cycle of a power generation project. n A full time, well resourced team, dedicated to renewable energy projects and issues globally n Well known to lenders insurance advisors, banks and legal teams and engaged on numerous debtfinanced projects for both onshore and offshore wind and solar projects n Currently managing the renewable energy assets for several infrastructure funds and successfully achieving major cost savings on portfolio placements n A substantial project and client base with which to understand insurance premium trends, industry losses, coverage developments n Market leverage via substantial placement of premium annually n A dedicated claims resource, currently advising some of the major industry claims

4 Our specialists are at your side with the right concept For manufacturers so that you can guarantee your product s performance Whether you manufacture wind turbines, solar modules or gearboxes it is absolutely essential for you to have insurance solutions which go beyond the traditional liability and property damage insurance covers. The economic success of a project depends on adequate long term protection being in place which is frequently more extensive than what the legislator requires. For instance, performance guarantees of up to 20 years are required in the market for photovoltaic modules. Long term liability promises and guarantees can put a heavy burden on the manufacturer s balance sheet. Serial losses and business interruptions can put a company s liquidity under tremendous strain and could prove to be an economic threat for the entire company or project. n First class cover concepts through many years of experience with all kinds of manufacturers and knowledge of current developments in technology n Improved security, planning ability and creditworthiness through insurance solutions specifically tailored to your requirements, for example: - Difference in Deductibles facilities - Difference in Conditions facilities n The burden on your capital requirements is eased through guarantee/warranty options For investors to secure your investment throughout the whole project life cycle Renewable energy projects offer investors lucrative earnings. Each year billions are invested in this industry world-wide and high growth rates are still expected in the future. If the start-up of a project is delayed because there are supply bottlenecks or construction is interrupted due to a fire, this can mean the loss of calculated proceeds for investors and jeopardize the entire financing of a project. To mitigate losses caused by such risks the Aon team supports the projects from the beginning by giving preconstruction risk advice and liaising with all project parties to enable effective contract negotiation. There is also a demand to insure against reduced yields, for example, because of decreased sun irradiation or lack of wind. n Optimum insurance strategy for your project by providing reliable market information and detailed costs estimates n Protection of your profits because we always offer the latest insurance concepts which bear in mind dynamic changes in the projects n We help you in two steps: - Risk consulting (project life cycle risk management, Estimated Maximum Loss studies, claims history analysis) - Acting as insurance intermediary and advisor (general insurance advice, premium benchmarking, support with contract negotiations)

5 For project developers so time does not cost money Project developers and turnkey contractors know that every construction project is subject to immense time pressure. If loss or damage occurs, you want to avoid any construction delays and any increase in costs this will entail. Our cover concepts for project developers include a comprehensive range of services and they are unique in the German market. n Support you for the entire project life cycle starting at the planning phase n Strong relationships with the fast growing renewable energy underwriting market and look to encourage new entrants to ensure innovation and healthy competition that ultimately benefits our clients n Offer insurance concepts tailored to the specific requirements for all parties involved in the project n Examination of all insurance covers submitted by all parties involved (planners, main contractors and subcontractors) For banks to help you assess the risks Constant increases in the size of projects, lack of experience and the dynamic development in technology equate to increased risks for the renewable energy industry. These risks are often difficult to quantify for lenders. Standard solutions which bear in mind subsidized loans, easement registering and keeping a minimum liquidity reserve available are no longer adequate in the case of many new projects. n Creation of transparency within the project through detailed risk analysis and optimising measures so that your negotiating position is reinforced n Due diligence studies n Reliable advice given by our qualified experts For operations and management companies to guarantee you optimum protection in a competitive market The demand for professional operations and management companies is on the increase new suppliers are pushing their way on to the market. In order to survive, operations and management companies, servicing and maintenance companies are taking on more and more extensive risks in their contracts. What used to be a traditional operator s risk to be carried by the owner of a plant nowadays frequently becomes the service provider s risk and, therefore, has to include in his insurance. n Cover for commercial and technical operating and management risks n Optimum servicing and maintenance contracts to exclude risks for your company n Specialists are called in for co-operation at an early stage to ensure the best possible results in operations and management

6 Aon Risk Solutions Power Renewable Energy Caffamacherreihe Hamburg Germany Tel.: Fax: Aon Versicherungsmakler Deutschland GmbH Caffamacherreihe Hamburg Germany