Hydropower parametric insurance
Protects hydropower revenue when river flow or basin rainfall drops below what the turbines need to run at economic capacity.
Index, trigger and payout
Payout
How the cover works
What is measured, and when it pays.
- Risk covered
- Shortfall in river flow / basin precipitation below the level needed to run turbines at economic capacity.
- Parametric trigger
- River discharge or catchment precipitation vs. flow-duration curve.
- Payout
- Predefined payout compensating the loss, sized on an 11-tier trigger scale.
- Index resolution
- Grid cell, monthly
- Data and model
- Gumbel/GEV extreme-value distribution — river-discharge extremes (same family as Flood).
- Typically for
- Renewable energy producers
Bought by the same clients
Related covers.
Next step
Test the trigger on your own location.
We back-test the index at your site over its full history and come back with indicative terms, before anything is bound.