Weather-related risk worries 43% of industry

WORLDWIDE: Concerns about risk from a lack of wind is second only to concerns about the risk of not being able to access finance, according to research published today.

A survey of renewable plant operators, designers, distributors and financiers across the globe found that 43% of wind industry respondents were worried about weather-related risk, compared to 56% who were worried about access to finance.

Wind volumes may deviate by 25% from normal values in any given year. This means that output, and therefore revenue, can be volatile through the life of projects, threatening their economic viability.

Tobias Reichmuth, CEO and co-founder of SUSI Partners Sustainable Investments pointed out that some projects are financed with up to 80% debt, the interest on which remains payable every year, whether there is wind or not.

Other respondents reported actual output falling short of pre-construction estimations so that revenue is below projections for the life of the project.

Many interviewees anticipated greater availability of products relating specifically to weather, including weather derivatives.