First Title - Green Title - Title Insurance for the Renewables Sector Brochure

Green Title

Title Insurance for the Renewables Sector Forward thinking insurance for a forward thinking industry.

Leading Title Insurance

What is Green Title?

Green Title is a suite of bespoke insurance policies, specifically designed by First Title Insurance plc, to transfer title and planning risks associated with the development of renewable energy sites, from project developers and managers onto the insurer.

Title and planning risks constitute a large proportion of overall project risk.

Failure to mitigate such risks can impact severely on the costs and timing of a project and in many cases thwart the development entirely.

What are the Risks?

There are five main categories of risk for renewables projects: Lack of Rights

Judicial Review A judicial review challenge may be made to the grant of planning permission which frustrates the project.

Often required to create access/ servicing roads and for the installation of grid connection infrastructure.

Restrictions on Title

A burden in historic titles to the site which limits the use of the land for specific purposes and may be enforced by the party with the benefit of that burden.

Reserved Rights The site may be burdened by historic sporting, minerals, access and servicing rights, which benefit third parties but are not being exercised.

Title Issues over ownership of the land due to inadequacies of historic title descriptions, missing or inadequate plans, changing land topography and boundary features.

What are the Implications?

What are the implications of inadequate title and planning risk management?

A well-executed claim can be catastrophic for a project and may result in: ■■

An injunction/interdict which prevents development.

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An order quashing existing planning permissions.

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An adverse impact on initial development costs or cash flow, where a ransom payment is required to be made to a third party.

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Project failure or delay if the title or planning risks cannot be resolved.

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Additional costs associated with legal defence of claims or settlement negotiations.

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Mandatory decommissioning of renewable energy systems and associated infrastructure.

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Liability for bank interest and other contractual payments while the project is delayed.

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Penalty payments due to missed grid connection/switch on deadlines.

Why Green Title?

At First Title Insurance plc, our renewable energy underwriting team works closely with the renewable energy sector to deliver creative title insurance solutions for project developers and funders.

We have designed the following bespoke products to ensure that no viable project is aborted as a result of a title risk: ■■

A specialist known risk policy which captures specific losses.

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A specialist developer policy which offers effective premium spreading solutions for option to lease project structures.

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A good title policy which provides a viable alternative to onerous title due diligence for operational projects.

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Loss of profits cover to enable microgeneration projects to access funding.

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Consequential loss cover for exposures in the event of delay.

We are constantly refreshing our product offering to ensure we can meet the demands of this rapidly evolving sector. Our specialist underwriting team will work with project developers and reinsurers to ensure that our policy is an exact fit for their project every time.

Who is Covered by these Policies?

Who is First Title Insurance plc?

All policies provide cover for successors in title, including lenders, purchasers and special purpose vehicles for all known title defects covered by way of endorsement on the policy.

Where the developer/manager is willing to accept the risks, we can provide lender only cover at a reduced rate to indemnify the lender for the loan amount.

With consistent A ratings* from the major rating agencies and the security and financial strength of our parent company First American Financial Corporation behind us, both you and your clients can be safe in the knowledge that you are working with a solid and dependable business partner.

Call: +44 (0)20 7160 8666 Email: comm.team@firsttitle.eu Visit: www.firsttitle.eu *Please refer to our website for further information.

First Title Insurance plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. First Title Insurance plc is registered in England under company number 01112603. Registered office: First Title Insurance plc, ECA Court, 24-26 South Park, Sevenoaks, Kent TN13 1DU.