Category: Renewable energy insurance · Reviewed by Amy Price, Account Executive · Last reviewed 2026-06-10
Tidal energy insurance is the marine-energy hybrid programme placed for tidal stream and (prospectively) tidal range generation assets, covering installation vessel operations, subsea turbines and onshore conversion equipment.
Category: Renewable energy insurance Also known as: Tidal stream insurance, Marine energy insurance, Tidal turbine insurance Typical UK market form: Marine CAR (WELCAR variants) + Marine Cargo + DSU + OAR + BI + Liability Related concepts: Offshore wind insurance, Marine cargo insurance, Hydroelectric insurance
Tidal energy insurance covers two principal asset classes: tidal stream generation, in which submerged turbines convert the kinetic energy of fast-flowing tidal currents (typically in the Pentland Firth, west of Orkney, the Channel Islands and the Strangford Lough area); and tidal range generation, in which water is impounded behind a barrage or lagoon and released through turbines on the falling tide. As of the mid-2020s the operational UK fleet is tidal stream only, including the MeyGen project in the Pentland Firth, with no operational tidal range schemes in the UK although the proposed Swansea Bay tidal lagoon and Mersey tidal scheme remain at development stages.
Tidal stream assets comprise the turbine and nacelle, foundation (typically a gravity base or pin-piled structure), subsea cabling, an onshore substation and grid connection. Project scales are small by offshore wind standards — typically in the single-digit to low double-digit MW range — but capital intensity per MW is high reflecting the early stage of technology maturity.
Construction is placed on a marine construction all risks form, often a variant of WELCAR 2001 adapted for the smaller asset envelope and the specific marine operations involved. Marine Cargo cover follows turbine and nacelle components from manufacturer to site; Delay in Start Up cover is sized to the contracted commercial operation date and the CfD revenue stream where applicable. Insurers typically require a Marine Warranty Surveyor review of installation methodology and weather windows, with installation operations restricted to defined sea-state and tidal-flow envelopes.
Operational placements combine an OAR section covering property damage and machinery breakdown to the subsea turbines and onshore plant, with business interruption on a gross revenue basis tied to CfD or merchant exposure. Public Liability is placed as a stand-alone tower, with explicit reference to marine third-party exposure (other vessel collision, snagging of fishing gear) which is largely unique to this class. Environmental Impairment Liability addresses transformer oil and lubricant release exposures.
Marine installation operations are the dominant construction-phase severity peril. Tidal stream sites are by definition located in extreme tidal current environments — the Pentland Firth experiences peak currents in excess of 5 m/s — which restricts vessel operating windows to short slack-water periods. Lift drop, anchor drag and cable damage during installation are recurring concerns, and insurers typically require demonstrated experience with the specific vessel and methodology.
Operational claims drivers are dominated by blade fatigue damage, debris strike (marine mammals, fishing gear, dropped objects), bearing and seal failure, cable damage and biofouling-related performance degradation. Recovery operations for failed turbines are materially more expensive than equivalent offshore wind operations because the marine conditions restricting installation also restrict recovery. The class also carries a meaningful environmental exposure profile around marine mammal interaction and the requirement for environmental monitoring under licence conditions.
Marine licensing in Scotland is administered by Marine Directorate (formerly Marine Scotland), in England and Wales by the Marine Management Organisation, and in Northern Ireland by DAERA. Seabed leasing is granted by Crown Estate Scotland (for Scottish waters), where the bulk of UK tidal capacity is located, and by The Crown Estate elsewhere. Specific environmental conditions including marine mammal monitoring, fisheries co-existence and noise impact assessment are central to operating licences.
Revenue support has been provided through the Contracts for Difference scheme administered by the Low Carbon Contracts Company under the Energy Act 2013. From AR4 (July 2022) a ring-fenced budget was created for tidal stream within Pot 2, securing contracts at strike prices materially higher than offshore wind reflecting the early stage of technology maturity. AR5 (September 2023) and AR6 (September 2024) each maintained ring-fenced tidal stream allocations. Generators must hold an Ofgem generation licence or rely on an applicable exemption.
Tidal stream is a niche underwriting class with capacity available from a small group of specialist marine and renewable energy insurers principally in the London market. GCube (Tokio Marine HCC), Munich Re, Swiss Re Corporate Solutions and a number of Lloyd’s marine and energy syndicates have written tidal projects. Total insured values are modest by offshore wind standards but capacity terms remain selective, particularly for first-of-a-kind technology deployment.
Broker placement is concentrated among Marsh, Aon, WTW and a small number of specialist marine renewables intermediaries. As the operational fleet grows and loss experience accumulates, capacity and pricing terms are expected to converge gradually with mainstream offshore wind market practice.
A 28 MW tidal stream array in the Pentland Firth comprising fourteen 2 MW turbines on gravity-base foundations, with a 15-year ring-fenced tidal stream CfD awarded in AR5 at the relevant administrative strike price, would typically be insured during construction under a £80–£120 million marine CAR programme with strict marine warranty survey conditions and DSU cover sized to a 12 to 24 month indemnity period. On commissioning the operator would place an OAR/BI policy with significant subsea repair sub-limits and a public liability tower addressing the marine third-party exposure.
This entry is part of the Apex Insurance Wiki. Last reviewed by Matt Bartlett on 2026-06-10. Next review: 2026-12-10.
Apex Insurance Brokers Limited. Authorised and regulated by the Financial Conduct Authority, FRN 724952. Registered in England and Wales, Companies House 07014570. This entry provides general information about UK insurance concepts and is not regulated advice. Consult your insurance broker on your specific position.
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