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Hydro power insurance

Supporting your hydro power project

As members of the British Hydropower Association, we represent the interests of the UK hydropower industry and its associated stakeholders at regional, national and global levels.

Our hydro insurance cover offers bespoke cover from planning through to the site being fully operational including:

  • Run-of-the-river: the natural flow and elevation drop (head) of a river are used to generate electricity.
  • Diversion: the supply of water is taken from a dammed river or lake to a remote powerhouse containing the turbine and generator. 
  • Pumped Storage: water is pumped using reversible pumping/generating units from a lower reservoir to an upper reservoir when demand for electricity is low. 
  • Impoundment: river water is stored in a reservoir behind an impounding structure, typically a dam or a weir.

How we can help

We have a wealth of experience in proving insurance solutions for micro, medium and larger hydro power projects.

These projects have been both community and privately funded and have involved the development of sites and renovation of existing water mills or former hydro sites.

Considerations for hydro power 

  • As with wind power the proposed sites for hydro tend to be in remote/rural locations, this can lead to logistic problems with getting replacement parts to the hydro site and subsequently increasing the disruption to the hydro plant
  • Hydro plants have a tendency to breakdown with the costs of labour and parts to repair expensive to insurance companies
  • The risks of natural perils damaging and interrupting a hydro plant are high with the increased danger landslide, snow slide and flooding in the immediate vicinity of the hydro plant. These events are increasingly more likely in winter months
  • Whilst the replacement/repair costs of other renewable technologies are reducing, the cost of hydro is still very high compared with other renewables. The development of a hydro site is very labour intensive with major civil works often required

Hydro insurance for the construction phase

  • Employers Liability Insurance
  • Public Liability Insurance
  • Professional Indemnity Insurance
  • Contractors All Risks insurance including Contract Works Insurance
  • Delay in Start Up/ Advanced Profits Insurance
  • Goods in Transit Insurance / Marine Insurance
  • Environmental Liability Insurance
  • Legal Expenses
  • Reinstatement/ Decommissioning Insurance – Alternative to a bond

Hydro insurance for the operational phase

  • All Risks Insurance Cover for Plant/ Equipment
  • Loss of Revenue Insurance (Business Interruption cover)
  • Public Liability Insurance
  • Legal Expenses