Power Generation

The issues that exist within power industry losses can be very complicated due to Power Purchase Agreements (PPAs), forward selling and hedging of power, and the operational profiles of the units.

Insurance Policy issues are common, as there are often concurrent causes of financial losses at play. PPAs in particular can result in revenue losses that materialise a considerable time after a generation loss has occurred. Dependent on the form of energy production, subsidies and carbon taxes also need to be factored in.

The concepts above primarily only relate to production of electricity, before the differing and complex systems of financing and distribution throughout the world are factored in. Capacity payments and the differing country parameters add additional considerations.

Our team have a wealth of experience in analysing and quantifying power generation losses and have been involved in countless power industry instructions throughout the world.