Hydro Insurance



HydroPower Insurance

Northern Alliance has a wealth of experience in placing hydro insurance and have provided insurance solutions for micro, medium & larger hydro power projects. The projects have been both community funded and privately funded and have involved both the development of new sites and the renovation of existing water mills or former hydro sites. 

We are also members of the British Hydropower Association. The British Hydropower Association (BHA) is the professional trade membership organisation representing the interests of the UK hydropower industry and its associated stakeholders at regional, national and global levels.

Our hydro insurance cover offers bespoke cover from pre planning through to the site being fully operational. We can arrange hydro insurance for the following types of hydro projects –

  • Run-of-the-river:  the natural flow and elevation drop (head) of a river are used to generate electricity. Power stations of this type are built on rivers with a consistent and steady flow.
  • Diversion:  the supply of water is taken from a dammed river or lake to a remote powerhouse containing the turbine and generator. A Canal or low-pressure tunnel transports the water to this end point and then back to the river to continue its course.
  • Pumped Storage: water is pumped using reversible pumping/generating units from a lower reservoir to an upper reservoir when demand for electricity is low. During periods of high electricity demand, the water from the upper reservoir is released back to the lower reservoir through the reversible units to generate power.
  • Impoundment: river water is stored in a reservoir behind an impounding structure, typically a dam or a weir. The water is  released as needed to meet energy requirements.

Hydro Insurance for Construction / Erection Phase

Hydro Insurance for Operational Phase

  • All Risks Insurance Cover for Plant / Equipment
  • Loss of Revenue Insurance (Business Interruption cover)
  • Public Liability Insurance
  • Legal Expenses

Insurance considerations for hydro power

  • As with wind power the proposed sites for hydro tend to be in remote/rural locations, this can lead to logistic problems with getting replacement parts to the hydro site and subsequently increasing the disruption to the hydro plant.
  • Hydro plants have a tendency to breakdown with the costs of labour and parts to repair expensive to insurance companies.
  • The risks of natural perils damaging and interrupting a hydro plant are high with the increased danger landslide, snow slide and flooding in the immediate vicinity of the hydro plant. These events are increasingly more likely in winter months.
  • Whilst  the replacement/repair costs of other renewable technologies are reducing, the cost of hydro is still very high compared with other renewables. The development of a hydro site is very labour intensive with major civil works often required.