Insurers plan to cover withdrawal of wind and solar subsidies.

FT: “Insurers are developing plans to protect investors in solar and wind power projects against the sudden withdrawal of crucial state subsidies that have battered the European renewable energy industry.”
“Willis, the world’s third largest insurance broker, is in advanced discussions with insurers including at Lloyd’s of London to put together such a policy and hopes to begin offering it next year.
Backers say the cover, to be provided to project financiers, would provide a much-needed boost to the renewable sector after governments across Europe cut funding for schemes following the financial crisis.
Authorities have cited a sharp fall in the cost of solar panels for lowering support levels. Several have guaranteed subsidies for the lifetime of existing projects, typically around 20 years, but reduced those for new schemes completed after a certain date.
However, Spain and several other countries have angered investors by making what companies say are retrospective subsidy cuts that endanger the viability of existing projects.
….Spanish solar PV plants have suffered an average 30 to 40 per cent cut in income, which amounts to about €2bn of losses compared with the initial investors’ expectations, the EPIA says.
Solar companies in France, the UK, Greece, Bulgaria and the Czech Republic have also been hit by cuts or chaotic changes, according to the association.”