Gamankov: Insurance key to success of green energy corridors

The success of green energy corridors will depend not only on governments, engineers, and investors, but also on proper risk assessment and management, according to Dmytro Gamankov, Senior Underwriter for Central and Eastern Europe and International Markets at VIG Re, Report informs.

Speaking at a panel discussion during the 11th Azerbaijan International Insurance Forum (AIIF-2026), Gamankov stressed that future green energy corridors must be built on identifying, structuring, evaluating, and transferring risks.

"Insurance and reinsurance companies will not be passive observers. They will become key players explaining why and how projects are attractive for investment and bank financing," he said.

He noted that while the concept of a green energy corridor is usually associated with renewable energy sources, transmission infrastructure, and cross-border cooperation, the insurance sector views these projects more broadly.

"As insurers, we see not only energy production facilities but also their interconnections, dependencies, value concentrations, and regulatory mechanisms across different countries. Contractual changes and legal frameworks spanning multiple jurisdictions can create numerous risks within a single value chain. That is why such projects must be assessed as whole systems, not piecemeal," he emphasized.

The expert pointed out that in modern energy connectivity projects, the main risk often lies not in generation facilities but in interconnectors and cable infrastructure linking national energy systems.

"A corridor is not just one asset but an entire system. It must be treated as an independent risk ecosystem," Gamankov said.

He argued that insurers and reinsurers should be involved from the earliest stages of project development, not only after contract structures are finalized. Responsibilities, rights, and obligations of all parties must be clearly defined in advance.

Potential losses, business interruptions, and repair logistics should be modeled early, he added, stressing that uncertainty over liability allocation must be eliminated from the outset to ensure financial stability and investment attractiveness.

Gamankov concluded that as the energy transition accelerates and cross-border integration deepens, the insurance sector will evolve from a risk-compensation mechanism into a strategic partner enabling the implementation of large-scale infrastructure projects.