Hydro, wind, and solar power are variable renewable energy (VRE) resources that can be substantially reduced by major droughts, floods, or prolonged periods of insufficient wind or sun. The USAID-funded Climate Economic Analysis for Development, Investment, and Resilience (CEADIR) Activity assessed opportunities for domestic insurance companies and international reinsurance companies to offer parametric insurance for utility-scale VRE in Central America. Parametric insurance reduces the financial risks to large, utility-scale VRE investments from extreme weather or climate events that have a major impact on resource availability for power generation.
During this next event in a series of joint Climatelinks-CEADIR webinars, the author of this assessment will present findings and opportunities. Representatives of global reinsurance companies SwissRe and MunichRe will also join to discuss their experiences with parametric insurance for utility-scale VRE in Latin America and beyond.
Santiago Enriquez has 20 years of experience designing and implementing clean energy, sustainable landscapes, and environmental projects in more than 15 developing countries. His work for CEADIR has included technical assistance to commercial banks on clean energy lending in Central America, cost-benefit analyses on charcoal use and its alternatives in Malawi and Zambia, and a cost-benefit analysis of climate-smart cacao production practices in Ghana. He holds a Master’s degree in Public Policy from Harvard University.