GCube Underwriting Ltd. secured a new underwriting facility, led by reinsurer Trust Re, for the Middle Eastern clean energy markets. GCube, supported by Trust Re and in partnership with two other influential regional backers, has developed an additional $95 million of underwriting capacity for new wind and solar projects in the region, which includes Egypt.
The first development to be completed under the new facility is a project forming part of the 1.8GW Ben Ban scheme, the largest PV development area in the world at 37km squared. The site, situated in the governorate of Aswan, comprises 41 plots, each with a power generation capacity of between 20 and 50MW.
The development of the facility has been significantly driven by domestic policy in the Middle East; Egypt is seeking to source 20% of its energy from renewable sources by 2022, while Saudi Arabia has a target of 9GW of installed capacity by 2023. These targets owe their existence to the international movement to reduce dependence on fossil fuels, as well as the recognition of the need to diversify away from low oil prices.
In turn, foreign investors and project developers drawn to the region by this target growth form a major driving force behind the facility. Ambitious targets, combined with the region’s limited track record in developing utility-scale solar projects, have created demand from developers for comprehensive insurance solutions.
GCube’s facility will be deployed to manage project risks during construction and operations.