Energy projects fail because they can’t get insurance

Energy projects are failing to get off the ground because it is so difficult to get insurance, according to Julius Brinkworth, Director at Power Efficiency. Mr Brinkworth said that the […]

By Vicky Ellis

Energy projects are failing to get off the ground because it is so difficult to get insurance, according to Julius Brinkworth, Director at Power Efficiency.

Mr Brinkworth said that the problem had been uncovered during research for an energy efficiency report.

At the launch this week for Carbon Connect’s new report, ‘Energy Efficiency: The Untapped Business Opportunity’ he told a business audience: “Lots of the big projects that we looked at, the funding around those projects was quite difficult. We assumed that was because people wouldn’t put capital up. Actually, some of the projects failed because we couldn’t insure them. The infrastructure around insurance for large energy projects is quite vague and actually difficult to organise.”

Mr Brinkworth added that removing this hurdle for energy projects was a key suggestion of the new report:

“We need some support to manage standard insurance contracts around large energy efficiency projects. Going forward, that is one of our really strong recommendations.”