The Insurance-Debt Nexus: Can risk policy make tidal power bankable?

Joe Hulm: All-Energy, SECC Glasgow, 4th May 2016

• MSc Energy, Environmental Technology and Economics• Over 8 years in tidal power project development

joe.hulm@oceanenergyadvisors.comM: +44 777 55 22 913

Mind The Gap

• Think outside the equity box

• OEM v Project Developer

• Can risk policy make tidal power bankable?

Post-Crash Debt

• Gramm-Leach-Bliley Act 1999

• Transactional Insurance Products

• CDS + CDO = WMD

• Need risk policy for productive lending

Policy

Insurance

Debt

Equity

The Insurance-Debt Nexus

“Variable Annuity”

Loss of revenue is offset by business interruption insurance

Predictable intermittency Variable baseload

Section 4.4 “Create an EU insurance fund to underwrite demonstration project risks”

Commissioned by DG MARE with Secretariat from Cefas

Finance Group Co-chairs from Ocean Energy Europe and The Crown Estate

30 MW multi-turbine commercial project – collaborative structure

Likely ‘case study’ project for MSc thesis

Discussing research methods and future impact on financing

Why Tidal?• Own area of expertise in project

development

• Physics of the fuel type provides “variable annuity”

• Contractually flexible and young market

• Application to other projects both on and offshore?

• Where is the problem?• What is the answer?• Who can deliver?

joe.hulm@oceanenergyadvisors.comM: +44 777 55 22 913