Case Study

Meeting the Contractual Requirements of a $6 Billion Renewable Energy Transmission Line Project

  • Financing for a significant international hydroelectric project.
  • Stringent insurance requirements.
  • Challenging marketplace.
  • Advanced financial and actuarial modeling.
  • Utilization of domestic and international insurance providers to establish a comprehensive multi-year risk management program.
  • Helped secure financing for the client.

The Challenge

A client sought financing for a 339-mile fully buried transmission line project delivering 1,250 megawatts of clean hydroelectric power from Canada to the U.S. To secure debt financing, the lenders imposed specific insurance requirements. The initial cost estimates, made over five years prior to finalizing financing, appeared reasonable. However, subsequent changes in the insurance marketplace, particularly regarding natural catastrophe perils, significantly increased the premiums.

The Solution

Symphony Energy professionals meticulously analyzed project details and insurance requirements, employing advanced financial and actuarial modeling to create a more robust risk profile. They collaborated with insurance and risk management advisors to identify potential obstacles throughout the project lifecycle. Utilizing insurance providers from North America, Bermuda, London, Germany, Australia, and Switzerland, they established a comprehensive multi-year risk management program covering risks from initial site preparation through construction to operational liability post-project completion.

The Outcome

Symphony Energy professionals constructed a customized risk management program for the client, unanimously approved by all lenders and still in use for their current project operations.