Munich Re provides the first Japanese solar panel warranty insurance to thin-film manufacturer Solar Frontier for installations worldwide. Munich Re’s global insurance solutions for the renewable energy sector redefine the industry’s project bankability and are major stepping stones in the financing of large-scale installations.
Solar Frontier’s proprietary CIS thin-film technology has been developed since 1993 in order to overtake the crystalline silicon market standard. The company became the world’s largest CIS thin-film and one of the world’s largest photovoltaic module manufacturers, after opening its new 900MW plant in Miyazaki prefecture, Japan, in early 2011. Prior to the agreement being signed, Munich Re had conducted an in-depth review of Solar Frontier’s product quality control and manufacturing processes.
The new insurance solution covers the long-term technology performance risk of Solar Frontier’s “CIS” photovoltaic modules. In the event of an unexpectedly large performance loss below guaranteed performance specification, Munich Re covers the insured manufacturers’ performance warranty obligations for up to 20 years. By providing this insurance, Munich Re allows solar plant operators and investors greater planning security. The innovative insurance solution is an important milestone in the implementation of photovoltaic projects, offering critical financial protection while significantly mitigating the long-term, technical guarantee risk for module manufacturers. In order to realise the insurance solution, Munich Re has worked closely with a primary insurer in Japan.
“Munich Re’s solution offers Solar Frontier’s solar panels an even further competitive advantage,” said Atsuhiko Hirano, Solar Frontier’s Vice President of Global Marketing and Power Generation. “It adds a great deal of clarity to the process of developing projects with results-focused power producers.”
“We are delighted to have concluded the first contract of this kind on the Japanese solar market and to support Solar Frontier in their ambitious global growth plan. With our expertise, we can assume very special renewable energy risks and help provide greater investment security,” said Thomas Blunck, member of Munich Re’s Board of Management. “We see considerable growth potential in risk transfer solutions for renewable energy. This market will gain in importance considering the change in the worldwide energy mix due to climate change.”
Source : Munich Re
