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Nephila and AGCS develop index-linked product for Lightsource bp

Nephila’s climate unit and Allianz Global Corporate & Specialty’s capital solutions division have struck a deal to provide index-linked cover to renewable energy firm Lightsource bp.

The product covers a 153-megawatt solar farm in Texas, which is operated by the BP-owned company. It will pay out if the plant is unable to operate because of adverse weather conditions. Under the contract structure, the claims quantum will be determined by a proxy generation index, instead of metered generation.

Commenting on the contract, AGCS managing director Vijay Suchdev said: “AGCS is excited to collaborate with Lightsource bp on this novel renewable energy hedge structure and risk management tool.”

He added: “We are committed to working with our partners to achieve their sustainability goals and to supporting the long-term global growth of renewable energy.”

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