Alternative energy
Parametric insurance for energy
Protection against financial effects of weather and natural factors that impact production, consumption, and energy-business revenue.
Structural principle
Parametric insurance is based not on assessing actual damage, but on a predefined weather or energy index. If the indicator reaches an agreed level — for example wind speed, temperature, solar radiation, precipitation, or water level — payout follows the policy terms. This protects not only physical assets, but also revenue, generation volumes, margin, and cash flow.
Which energy risks can be insured?
Solar generation
Protect solar parks from seasonal insolation deficit.
Wind generation
Protect wind farms from wind anomalies.
Temperature risks
Manage demand-shift risk under abnormal temperatures.
Hydropower and water
Hedge water inflow and reservoir levels for HPP cascades.
How it works
Step 1. Define the risk
For example, a PV farm loses revenue when solar radiation is insufficient.
Step 2. Define the index
For example, solar radiation over a period or a forecast generation index.
Step 3. Set the threshold
If the indicator falls below the agreed level, a payout right arises.
Step 4. Payout amount
The payout depends on index deviation and the agreed notional, and has a limit.
Who parametric solutions are for
PV and wind farm owners
Hedge profitability and debt burden toward banks.
Asset operators
Manage technical risk and forecast generation.
Producers and traders
Protect margin on the wholesale day-ahead market.
Energy suppliers
Smooth peak price imbalances during anomaly periods.
Companies with PPAs
Hedge obligations under bilateral purchase agreements.
Industrial majors
Large energy consumption sensitive to demand and tariff swings.
Hydropower
Cascade HPPs and small plants during drought and low water.
Weather-dependent businesses
Infrastructure operators whose revenue depends on weather.
"Shark Insurance helps structure parametric cover for a specific business exposure and select the right index, period, threshold, and limit."
Parametric insurance — is a way to define in advance which weather factor creates financial risk for your business and tie payout directly to that indicator.
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