GreenieRE, a reinsurance company that leverages commercial financial products to alleviate risks that are holding back new energy infrastructure, has partnered with United Casualty and Surety Insurance Company (UCS) to launch a Renewable Energy Surety Program. This new program will bring a suite of products to the market designed to provide bonds for renewable energy developers and utility owners in the event that contracted projects are not completed or unable to be fulfilled.
The first Renewable Energy Surety products issued under this program are for a community solar project in the Midwest, providing both interconnection bonds to cover the risk that the developer may fail to complete required interconnection upgrades, as well as decommissioning bonds to ensure that funds are available to properly remove and dispose of the solar equipment at the end of its useful life. Other products that will be offered under the Renewable Energy Surety Program include performance and power purchase agreement/virtual power purchase agreement (PPA/VPPA) bonds, construction bonds and site lease and permit bonds. All of these products target specific bottlenecks that prevent the building and deployment of new energy infrastructure.
“Our surety program directly supports the buildout of renewable energy assets, enabling capital efficient credit support for developers and utilities,” said Jeff McAulay, CEO of GreenieRE. “This partnership reflects our commitment to helping more domestic clean energy infrastructure get built quickly and responsibly. We are excited to partner with UCS and look forward to working with them to continue to drive innovation in risk transfer products.”
The release of GreenieRE’s surety product line represents a step forward in its goal of working alongside traditional risk financing institutions to support clean energy project development. The challenges renewable energy assets face are often greater for projects serving low-income and disadvantaged communities (LIDAC). With these surety products, GreenieRE and UCS are ensuring these communities have access to affordable clean energy, fostering private sector engagement, and driving the investment of additional capital.
UCS will share in risk, will provide a second underwriting and pricing review, and handle claims.
To ensure wide market access to the program and its products, GreenieRE is working with specialty surety brokers and renewable energy brokers.
News item from GreenieRE
