Energy Demand
A power distribution company wanted to protect its balance sheet against unexpected costs of buying energy during a demand surge during summers. They purchased a temperature index insurance cover against demand surge due to heat and cold waves.
Who Can Benefit
- Power Generation Companies
- Energy Traders
- Retail Power Distributors
- Industrial / Commercial Energy Consumers
- Government Energy Departments
Temperature
Sample Policy
A power distribution company purchased a temperature index cover against demand surge due to heat and cold waves.
Coverage Terms
POLICYHOLDERPower Distribution Company
LOCATIONNew Delhi, Delhi
DATA SOURCEIMD Gridded Temperature Data (Geo Reference: 28.5°N 77°E)
PAYOUT BASED ONDeviation in Monthly Average of Daily Mean Temperature
COVERAGE PERIOD1st January to 31st December
TRIGGER LEVELDeviation of 3°C
PAYOUT CALCULATION₹1,25,00,000 per 0.5°C deviation
MAXIMUM PAYOUT LEVEL5°C Deviation
MAXIMUM PAYOUT₹ 5,00,00,000
Payout Sheet
For illustration purposes, a sample of one cover is presented below. Generally, covers using multiple indices are offered for comprehensive coverage.
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