The new coverage combines Descartes' parametric risk modelling capabilities with real-time wind speed data collected through Nextpower's on-site meteorological stations. By using site-specific measurements to trigger payouts, the solution aims to significantly reduce basis risk while providing rapid liquidity following severe wind events.
Available globally through commercial (re)insurance brokers, the product offers limits of up to USD 80 million per policy worldwide and up to USD 100 million in the United States. It can also be combined with Descartes' existing tornado and hail parametric solutions to provide broader protection against severe convective storms.
According to the partners, the solution is designed to help solar power plant owners and operators address the financial consequences of extreme weather events, supporting business continuity, reconstruction efforts, debt servicing obligations, and power purchase agreement commitments.
"As severe weather risks intensify, solar operators need faster, more precise ways to protect project economics and keep critical clean energy assets online," said Andrew Griffiths, Vice President, Asset Management at Nextpower.
The initiative reflects the growing use of project-specific data and parametric insurance solutions to strengthen the resilience of renewable energy infrastructure as global solar capacity continues to expand.
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