“The cold ironing of Italian ports is a hot topic and is making waves even on the banks of the Thames, attracting interest not only from top figures in the international maritime cluster, but also from several representatives of investment funds drawn to the methods and possible financial implications of Italy’s ongoing process of electrifying its quays.”
This is what Aon / Aon Re and the law firm Advant -Nctm report regarding the workshop “Cold ironing, powering the ports of the future”, hosted by the Italian Embassy in London. In the audience, representatives of the maritime cluster, delegates to the IMO from several maritime countries, insurers, and investment funds specializing in infrastructure discussed the development of shore power activities, the challenges related to port electrification, and specifically the coverage of risks associated with these activities. Particular attention was therefore paid to investment opportunities, risk allocation, and insurance solutions connected to this complex energy transition.
After the welcome from Embassy Counselor Umberto Bernardo, who conveyed the greetings of Ambassador Fabio Cassese, and the introductions by Andrea Parisi and Pietro Toffanello, respectively CEO of Aon for Italy and CEO of Aon Reinsurance Italia, Benedetta Scotti, Director of the General Directorate for Ports, Logistics and Intermodality, presented the quay electrification project implemented by the Ministry of Infrastructure and Transport (Mit).
Speeches then followed from Alberto Rossi, Coordinator of the Shipping Department at Advant-Nctm and Secretary General of Assarmatori, Giorgio Moroni from Aon Spa, and Riccardo Barelli from Aon Re. Moderating was Giuseppe Spera, Deputy Permanent Representative of Italy to the IMO, who highlighted how “the evolution of ports into energy hubs opens up significant investment opportunities, while requiring substantial capital and close cooperation between port authorities, shipowners, and energy suppliers against the backdrop of European policy initiatives and the IMO’s climate agenda. The success of port electrification represents both a challenge and a strategic opportunity. Its realization depends on a combination of solid regulatory support, capital investments, technological innovation, and effective risk management.”
“Effective infrastructure development must necessarily take into account legal and insurance aspects, first and foremost to avoid risks related to so-called climate litigation. What would happen, in fact, if the shipowner, whose vessel is equipped with the ‘plug’, could not obtain energy from shore due to a lack of or malfunction in the system? Who would be responsible? The regulatory framework is broad and unfortunately not always unambiguous; moreover, we are talking about a novelty, in which Italy has been able to act with foresight and with a significant investment. Discussing these aspects, and insurance ones, means placing potential investors in a position of greater awareness, thus helping the development of the country system,” added Alberto Rossi of Advant-Nctm, also in his capacity as Secretary General of Assarmatori.
“With the systematic and widespread adoption of shore power systems, the management of operational risks associated with connecting ships to high-voltage terrestrial electrical networks, including equipment malfunctions, voltage spikes, and potential fires, is becoming increasingly important.”
“We have focused on identifying the necessary integrations and amendments to the liability coverages currently available to cover new potential risks, without the support of statistical data and experience,” stated Giorgio Moroni of Aon Spa.
“We have concentrated heavily on seeking insurance capacity from various markets to meet the likely demand for high policy limits for concessionaires’ liability policies. The insurance sector indeed plays a central role, that of ensuring the compatibility of the new system from every angle, protecting all operators from economic losses and consolidating trust in the safety and effectiveness of cold ironing,” concluded Riccardo Barelli of Aon Re.
