Wind Energy Productivity
A solar panel distributor in Rajasthan wanted to provide an energy production guarantee to its customers. They purchased a solar irradiance index insurance cover that pays out if total solar irradiance falls below a trigger level.
Who Can Benefit
- Wind Farm Operators
- Power Distribution Companies
- Wind Turbine Manufacturers
- Energy Traders
- Institutions Financing Wind Projects
Wind Speed
Sample Policy
A wind energy operator can take an index cover where payouts are linked to cumulative wind generation falling below a trigger level during the period.
Coverage Terms
POLICYHOLDERWind Energy Farm Operator
LOCATIONKalpa, Kinnaur, Himachal Pradesh
DATA SOURCE10m u-component & 10m v-component of wind, ECMWF ERA-5 Land (Geo Reference: 31.6°N 78.2°E)
PAYOUT BASED ONTransformed ERA5 wind → Generation
COVERAGE PERIOD1st January to 31st December (Quarterly payout)
PAYOUT CALCULATION(Trigger Level - Cumulative wind energy generation) × (Cost of kWh energy production/sq. mt.)
TRIGGER LEVEL80% of Expected Production
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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