kWh Analytics

At kWh Analytics, 'Always Be Learning' is one of our core values. Collaboration across industries is crucial for advancing renewable energy solutions and improving risk assessment. Last week, our team had a chance to meet with Susie Martin and her colleagues at Praedictix, a group of expert meteorologists working on enhanced weather prediction and analysis. They joined us for a weekly All-Hands meeting to discuss the intersection of meteorology, climatology, and renewable energy. Taking the long view, Paul Douglas educated us that there is still debate on whether we really are seeing an increase in hail severity and frequency, or if the increase is due to better widespread data collection and more Instagram tornado chasers. Over the long term, the data is still out. Beyond hail, we discussed the broader implications of technological advancements in weather prediction. Since much of meteorology is pattern recognition, the potential of AI in improving weather detection and warnings is significant. As Praedictix and even the National Weather Service start to incorporate AI, we can hope to see more accurate and timely alerts for severe weather events in the future. We're grateful to Susie and the entire Praedictix team for sharing their expertise and look forward to applying these insights to better serve our clients.

At kWh Analytics, we're privileged to collaborate with the industry's finest minds in renewable energy insurance. We recently convened our inaugural Broker Council, bringing together leading experts to discuss the latest trends and challenges in renewable energy risk transfer. Their insights on our 2024 Solar Risk Assessment report are invaluable for anyone in the field. Key topics covered: - Equipment resiliency in extreme weather - Challenges for pure play developers - Navigating BESS risks and opportunities - Alternative risk transfer solutions - Pricing and terms variability Thank you to the broker council for their insight and support! Read the report in the Powering Progress newsletter by Jason Kaminsky Michael Cosgrave, CIC, CRM, CLTC RenewableGuard, Sara Kane CAC Specialty, Matthew Giambagno Marsh, Todd Burack, ARM, CRIS McGriff, Alex Morris WTW, Stephanie Coveney Brown & Brown Insurance, Rob Battenfield Amwins

The Inflation Reduction Act has supercharged renewable energy growth, and as Darryl C. Harding, Director of Technical Underwriting at kWh Analytics, writes in this PC360 article, we have our work cut out for us. As solar installations are projected to surge 48% in the next decade, we're seeing projects pop up in areas prone to severe weather risks. Darryl spoke with Brendan Fountain of Alliant Insurance Services about how states like Texas, attractive for development, have also seen significant natural catastrophe claims. On the bright side, Molly Lovelette noted the industry's push for more resilient projects and improved technology to tackle these challenges. Developers who are taking a vested interest in the design, construction, and maintenance of these assets deserve to be rewarded - and this is where collaboration between insurers, brokers, and asset owners is key. Proving this resilience to the right carrier should result in improved terms! Another great one by Darryl! Love seeing our team be thought leaders in climate insurance https://lnkd.in/gzQu_-J4

In the solar industry, up until about two years ago, the singular focus has been, how do you get electrons to be cheaper? Solar, storage and wind have been incredible deflationary asset classes. I’ve been in this industry for 17 years, and this is the first time that I’m hearing people say “Maybe we should invest in making assets more robust, more resilient, because the losses that we’re seeing out in the field are just so large.” But they currently lack the tools to make those macroeconomic decisions. So we’re still at a point that I call the first inning of resilient asset construction — from a research perspective, from an economic analysis perspective — and giving developers the tools they need to make these decisions. But it’s the right trend; these are 30- or 40-year infrastructure assets, and the Solar Risk Assessment is one of many avenues to help push the industry forward to say, “We do want to build more robust assets that are going to withstand the useful life of that technology.” *** Quote taken from this great interview with David Agnew in Risk & Insurance https://lnkd.in/grAQKAkN

Jason Kaminsky, CEO of kWh Analytics, breaks down how the first-of-its-kind Parametric Wind Proxy Hedge structure works, and, most importantly, how sponsor Greenbacker was able to raise roughly 20% more debt capital as a result of including the structure in project financing. Read Powering Progress here:

🚨 Exciting News! Today, we have announced the successful close of a parametric wind proxy hedge for a 59MW wind project, partnering with Greenbacker , Munich Re, and MUFG. This innovative structure mitigates wind speed volatility by providing investment-grade cash flow above the P99 wind speed, significantly improving the project's risk profile for lenders. Key benefits include: ▶ Combines a parametric wind hedge with our Indifference Structure ▶ Enhances the project's P99 scenario ▶ Enabled ~20% more debt capital for the sponsor Our Head of US Accounts, Geoffrey Lehv, puts it best: "This is about more than just financial engineering – it's about accelerating the transition to clean energy by making wind projects more bankable and attractive to investors." Read the full press release to learn more: https://lnkd.in/gsyEAdhJ

I joined the solar industry because it intersects with so many global issues- energy, politics, land use, climate change, economics, and even war. I am in London and decided to spend the afternoon in a very British fashion- at a pub, reading the Economist. Imagine my surprise that the editorial on the massive growth of solar was followed immediately by an editorial on the growing use of AI by the military. I dearly hope the former mitigates some risk of the latter. It will relax our need to align with Petro states and spend military resources protecting the oil supply chain. I try to be an optimist, but unfortunately it seems that as a species we can always find a reason to fight. It doesn't mean we won't stop trying! Solar has so many cobenefits that are all worth pursuing independently and is such an elegant solution to so many problems.

Our team recently participated in a workshop hosted by the U.S. Department of Energy (DOE) on the intersection of AI, data, and Energy Storage. In this post, we summarize Adam Shinn's take aways and insights from the event!

With the passage of the Inflation Reduction Act and development of tax transfer markets, we're going to see a longer tail of owners of renewable energy assets. For more traditional property brokers, this presents an opportunity and a challenge. I spoke to Danny Wood at Insurance Business America about this emerging theme. When any $tn industry grows 20% YoY, it's going to pop up everywhere. It also presents a challenge for insurance carriers who may start taking on solar and battery storage risks that they are not directly underwriting, or have expertise in covering. More in the article: https://lnkd.in/gBQ2raMi

If you're looking for some portable solar insights this holiday weekend, try... The Solar Risk Assessment: Audiobook Edition 🎶 The full report, including insights on extreme weather risk, operational risk, and battery risks, is now available in audio format. Find it wherever you listen to the Currents podcast by Norton Rose Fulbright (Apple Podcasts, Spotify): https://lnkd.in/gEz6tBJ3