Wind park construction in Brazil is gaining force as the demand for electric power increases. Allianz subsidiary, AGF Brasil Seguros has the windwards position when it comes to insuring the construction and operations of Brazilian wind parks.
 | The massive Itaipu dam contains the world's second biggest power plant. But with growing energy demand, alternative energy sources like wind power become increasingly important for Brazil (Photo: Reuters) |
Brazil is a world leader in renewable energy; nearly 80 percent of its electricity demand is met with hydropower. Wind energy, however, has not been a big issue so far currently supplying a mere 0.5 percent of the national electricity grid. But the country's energy demand is far outstripping the supply – so much so that real supply problems are expected by 2010. Wind-derived energy is forecast to increase to five percent in the next five to ten years.
AGF Brasil Seguros is covering this growth. Building on in-house expertise within the Allianz Group, the Allianz subsidiary has become the leading insurer of wind farms in Brazil. AGF Brasil covers both the building and the operation of wind farms.
Fifteen wind farms – eight of them covered by AGF Brasil Seguros – currently dot the Brazilian landscape, mostly in coastal areas. The company's loss record on wind farms has been excellent. The technology for building and maintaining wind farms has improved tremendously since they were first introduced in Europe approximately ten years ago.
“The construction phase is the most dangerous,” says Luciano Calheiros, head of Large Risks at AGF Brasil, “but, once the farm is up and running, it’s the normal events you worry about – fire, lightening, wind storms, mechanical breakdown or a short circuit in the generator.”
Abundant hydro power
But Calheieros intends to take it further aiming at new hydropower projects as well. Brazil’s long rivers and many lakes offer abundant opportunities for dams to be erected. Even tough the country produces more than three quarters of its energy with hydrodams, only 28 percent of its hydro potential is currently being utilized.
“With the existing [electricity] demand, there is no time to wait for large hydroelectric plants to be built,” says Calheiros [some are planned but are delayed pending environmental licenses], “so many smaller plants are under construction.” AGF Brasil Seguros is insuring 30 percent of these.
editor: Breda O'Hara, article first published in the "Allianz Journal"
publishing date: November , 2007
