First Title has adapted and consolidated its suite of tailored legal indemnity policies for the renewable sector under the new umbrella of ‘Green Title’.
The move comes in the wake of increasing demand for bespoke title insurance policies from growing numbers of developers and funders involved in renewable development projects. This rise in activity is a direct response to national and international government commitments to reduce carbon emissions by securing viable alternative sources of energy supply.
The Green Title offering covers a range of policies such as ‘Known Risks’, ‘Good Title’ and the ‘Developer’s Policy’. These policies have been fine-tuned from standard title insurance policies in conjunction with individual First Title clients, to address the specific challenges and potential losses inherent in renewable energy development. They are generally applicable to onshore and offshore wind farms, solar, hydroelectric and biomass projects.
General risks associated with renewable energy development include access and servicing issues where, for example, developers could encounter difficulties trying to access the site or to connect to the national grid; and ‘ransom value’ for trespass on mines and minerals rights. Other more specific risks could include the so-called ‘shadow flicker’ from wind turbine sails, which might constitute a breach of a restrictive covenant.
“Renewable energy is a critical issue for the UK. Energy companies and developers are focused on investing in, and expanding this market. It’s a sector in growth but it’s expensive and risky,” said Reema Mannah, head of business development for Scotland & Northern Ireland and senior underwriter specialising in renewable energy projects at First Title Insurance plc.
“We’ve been working with our clients to create a range of policies that help to mitigate the development risk involved in renewable energy projects. We’ve brought together these policies under the Green Title banner to emphasize their relevance and effectiveness.”
Green Title is believed to be the first branded package of legal indemnity policies for renewable energy developers available on the market. Take-up has been swift and First Title’s clients in this new market include both renewable energy teams within Legal 500 law firms as well as in-house legal departments within large energy generation companies.
This initiative reinforces First Title’s position as the UK’s leading provider of legal indemnities and an innovator in the commercial real estate sector.