Upload
hoangtruc
View
219
Download
0
Embed Size (px)
Citation preview
By David Grant Head of Property Underwriting
Migdal Insurance CompanyMigdal Insurance Company
AndAnd
Assicurazioni Generali SpAAssicurazioni Generali SpA
UK Branch UK Branch -- LondonLondon
Tel Aviv – 12 November 2009
1
Table of contentsTable of contents
Renewable Energies
1.1. IntroductionIntroduction
2.2. The workings of PhotovoltaicThe workings of Photovoltaic
3.3. Market Trends and Israel situationMarket Trends and Israel situation
4.4. Risks and Insurance IssuesRisks and Insurance Issues
5.5. Migdal Migdal –– Generali Global WordingGenerali Global Wording
6.6. Lack Of SunLack Of Sun
7.7. Questions?Questions?
Renewable EnergiesRenewable Energies
3
Renewable EnergiesRenewable Energies
Electrical Energy Electrical Energy –– a big problema big problem
Electrical energy cannot easily be stored in quantities large enElectrical energy cannot easily be stored in quantities large enough to meet ough to meet
national demands, it must be produced as it is requirednational demands, it must be produced as it is required
Introduction
4
Renewable EnergiesRenewable Energies
Electrical Energy Electrical Energy –– a big problema big problemCould be possible to replace fossil fuels with renewable energieCould be possible to replace fossil fuels with renewable energies sources?s sources?
Introduction
A David versus Goliath issue?A David versus Goliath issue?
Source :Source :
International Energy AgencyInternational Energy Agency
5
The workings of PhotovoltaicThe workings of Photovoltaic
Direct conversion from Solar Radiation to Electric EnergyDirect conversion from Solar Radiation to Electric Energy
Renewable EnergiesRenewable Energies The workings of Photovoltaic
6
.kWh..kWh.
PV Panels
Inverter Meter
Converts Solar Radiation Converts Solar Radiation
into Electric Energyinto Electric Energy
DC AC
Records the Records the
amount of energy amount of energy
fed into the grid fed into the grid
Solar Solar
radiationradiation
Converts Converts
DirectDirect--Current Current
into into
AlternateAlternate--CurrentCurrent
Renewable Energies The workings of Photovoltaic
From Sun to ElectricityFrom Sun to Electricity
Solar Cells operate like Solar Cells operate like
batteries, with variable power batteries, with variable power
output , depending on solar output , depending on solar
radiation intensity radiation intensity
7
Renewable Energies The workings of Photovoltaic
Panels Technology and Plant TypesPanels Technology and Plant Types
IntegratedIntegratedOn GroundOn Ground Semi IntegratedSemi Integrated
PolyPoly MonoMono AmorphousAmorphous
PhotovoltaicPhotovoltaic
8
Renewable Energies The workings of Photovoltaic
Plant size to meet a family needsPlant size to meet a family needs
Standard Family, living in a 3 bedroom house needs Standard Family, living in a 3 bedroom house needs 3000 kWh to 4000 kWh3000 kWh to 4000 kWh
of Electric Energy per yearof Electric Energy per year
According to Israel yearly Solar Radiation averages, circa 1600kAccording to Israel yearly Solar Radiation averages, circa 1600kWh/mWh/m22 the the
installed power could be installed power could be 3kW corresponding to circa 20 square meters.3kW corresponding to circa 20 square meters.
9
Renewable Energies The workings of Photovoltaic
Performance EvaluationPerformance Evaluation
For performance estimation of a Photovoltaic Power Plant, the JRC web
application could be used as reference
1. Go to
http://re.jrc.ec.europa.eu/pvgis/
2. Select the location of the plant
3. Fulfill the module, with the
information requested
4. Execute the application to obtain:
1. Optimum Orientation
2. Yearly production
3. Productivity
ConsiderationsConsiderations
1.1. High installation costsHigh installation costs
2.2. High investments neededHigh investments needed
3.3. Discontinuous ProductionDiscontinuous Production
4.4. High surfacesHigh surfaces
5.5. Lack of economical efficient storage Lack of economical efficient storage
system.system.
6.6. Efficiency degradation 1% per yearEfficiency degradation 1% per year
7.7. Need Feed in tariffsNeed Feed in tariffs
PhotovoltaicPhotovoltaic
10
Renewable Energies
Solar resource are abundant and cannot be monopolized by one couSolar resource are abundant and cannot be monopolized by one countryntry
BenefitsBenefits
1.1. Free and unlimited Free and unlimited ““fuelfuel””
2.2. Ambient temperature operationAmbient temperature operation
3.3. High reliability in modules (> 20 years)High reliability in modules (> 20 years)
4.4. Can be integrated into existing Can be integrated into existing
buildingsbuildings
5.5. High public acceptanceHigh public acceptance
6.6. Low maintenance, low HR needsLow maintenance, low HR needs
7.7. Quick to InstallQuick to Install
The workings of Photovoltaic
Renewable Energies
12
Renewable Energies
Present Situation for Photovoltaic Present Situation for Photovoltaic –– Feed In TariffsFeed In Tariffs
Feed In TariffsFeed In Tariffs
LongLong--term, stable, feedterm, stable, feed--in tariffs have been proven the most efficient in tariffs have been proven the most efficient
instrument for sustainable market penetrationinstrument for sustainable market penetration
Italian ExampleItalian Example Plant type
Nominal Power in kW On Ground Semi Building Integrated Building Integrated
A) 1 ≤ P ≤ 3 €/kWh 0,392 €/kWh 0,431 €/kWh 0,480
B) 3 < P ≤ 20 €/kWh 0,372 €/kWh 0,412 €/kWh 0,451
C) P > 20 €/kWh 0,353 €/kWh 0,392 €/kWh 0,431
Feed-In Tariffs
Subsidy paid, for a defined time (15 to 20 years), for every kwhSubsidy paid, for a defined time (15 to 20 years), for every kwh
produced by the plant. produced by the plant.
13
Renewable Energies
Good ExampleGood Example
ItalyItaly
Present Situation for Photovoltaic Present Situation for Photovoltaic –– Feed In TariffsFeed In Tariffs
Market Trends
Present Situation for Photovoltaic MarketPresent Situation for Photovoltaic Market
14
Renewable Energies
In just one year, utility-scale Photovoltaic
tripled to 3 GW.
Spain, added 2.6 GW
Germany added 1.5 GW
US added 340 MW
Italy 300 MW
South Korea 270 MW
Japan 240 MW
Europe in 2008 had a cumulative installed
capacity of 9.5 GW
Market Trends
Present Situation for Photovoltaic MarketPresent Situation for Photovoltaic Market
15
Renewable Energies
The world-wide installed capacity
reached 16.0 GW by 2008.
Market Trends
According to the electric energy needs for
a standard house the installed power is
capable to feed 5,300,000 houses
This represented 0.15% of global demand
at the time.
16
Renewable Energies
•• The intendedThe intended feedfeed--in tariff is about 2.01 NIS per kWh produced by PV system. in tariff is about 2.01 NIS per kWh produced by PV system.
•• Limited to a total installation of 50MW during 7 years, whicheveLimited to a total installation of 50MW during 7 years, whichever comes first.r comes first.
•• FeedFeed--in tariff for 20 yearsin tariff for 20 years
•• A maximum of 15 kW for the domestic sector and a maximum of 50kWA maximum of 15 kW for the domestic sector and a maximum of 50kW for the for the
business sector.business sector.
•• Systems must be installed on aSystems must be installed on a built structure. built structure.
•• 20% of program must be from private individuals.20% of program must be from private individuals.
ISRAELISRAEL started in started in 20082008 with feedwith feed--in tariffsin tariffs
Israel Market
Present Situation for Photovoltaic Present Situation for Photovoltaic –– IsraelIsrael
17
Renewable Energies Israel Market
Present Situation for Photovoltaic Present Situation for Photovoltaic –– IsraelIsrael
50 MW50 MW
1,000,000,000 NIS 1,000,000,000 NIS
10 MW 10 MW
200,000,000 NIS200,000,000 NIS
2000 plants2000 plants
15 kW15 kW
350,000 NIS350,000 NIS
30,000 NIS30,000 NIS
3 kW3 kW
75,000 NIS75,000 NIS
7,000 NIS7,000 NIS
Private Private InstallationsInstallations
Commercial Commercial InstallationsInstallations
Total ValueTotal Value
Max. InstallationMax. Installation
Plant ValuePlant Value
Year Production Year Production ValueValue
18
Renewable Energies
The National Infrastructures Ministry is evaluating a feedThe National Infrastructures Ministry is evaluating a feed--in tariff scheme for in tariff scheme for
mediummedium--sized solarsized solar--power stations ranging from 50 kilowatts to 5 megawatts.power stations ranging from 50 kilowatts to 5 megawatts.
The proposedThe proposed feedfeed--in tariff is about 1.58 NIS per kWh producedin tariff is about 1.58 NIS per kWh produced
NEGEV DESERTNEGEV DESERT
Future for Photovoltaic in Israel ?Future for Photovoltaic in Israel ?
Israel Market
Renewable Energies
Construction Construction -- On GroundOn Ground
Renewable Energies Risks & Insurance Issues
20
Construction Construction -- Building IntegratedBuilding Integrated
Renewable Energies Risks & Insurance Issues
21
Construction Construction
Renewable Energies Risks & Insurance Issues
• Damage during construction
• Vandalism and theft due to incomplete protection systems
• Lightning
• Short circuit
• Bad Workmanship
• Electrical damages during testing
Ris
ks
Ris
ks Design ErrorsDesign Errors
Material, Fusion, Material, Fusion, Product DefectsProduct Defects
22
Operational Risks Operational Risks
Renewable Energies Risks & Insurance Issues
• Vandalism and theft
• Lightening
• Short circuit
• Machinery Breakdown
• Inverter damages – High BI
• Earthquake damages
• Electrical damages during testing
• Fire within the building on which the PV is installed
Theft, inverter Theft, inverter breakdown, breakdown, structural structural damagesdamages
Ris
ks
Ris
ks NatCat, NatCat,
Vandalism,Vandalism,Machinery Machinery
Breackdown Breackdown
23
Damages examplesDamages examples
Renewable Energies Risks & Insurance Issues
24
25
Number of LossesNumber of Losses
2004/20072004/2007
Renewable Energies
snow
pressure
14%
overvoltage
26%
windstorm
9%theft
2%
hail
2%
malicious
damage
3%
fire
2%
other
causes
42%
Renewable Energies Munich ReRenewable Energies Munich ReGerman Insurance AssociationGerman Insurance AssociationBerlin 2008Berlin 2008
Risks & Insurance Issues
26
Claims Expenditure Claims Expenditure
2004/20072004/2007
Renewable Energies
snow
pressure
12%
overvoltage
14%
windstorm
25%theft
8%
hail
3%
malicious
damage
1%
fire
26%
other
causes
11%
Renewable Energies Munich ReRenewable Energies Munich ReGerman Insurance AssociationGerman Insurance AssociationBerlin 2008Berlin 2008
Risks & Insurance Issues
27
Renewable Energies
28
Renewable Energies Policy Wording
PropertyProperty
All RisksAll Risks Property wording adapted to Photovoltaic Plants.Property wording adapted to Photovoltaic Plants.
The Insurer will indemnify The Insured for Damage to the InsuredThe Insurer will indemnify The Insured for Damage to the Insured Property if:Property if:
1.1. The Insured Property being, where appropriate:The Insured Property being, where appropriate:
1.1. securely fixed to an appropriate support, securely fixed to an appropriate support,
2.2. tested and connected to the National Grid or network,tested and connected to the National Grid or network,
3.3. situated in the Locations as stated in the Policy Schedule.situated in the Locations as stated in the Policy Schedule.
2.2. It is hereby Warranted that Insured holds a It is hereby Warranted that Insured holds a current certificate of suitability issued by current certificate of suitability issued by
the national or local authoritythe national or local authority stating that the installation meets with all the stating that the installation meets with all the
necessary legal requirements and the certificate is updated whennecessary legal requirements and the certificate is updated when required to required to
include any variants, upgrades and extensions. include any variants, upgrades and extensions.
29
Renewable Energies Policy Wording
PropertyProperty
All RisksAll Risks Property wording adapted to Photovoltaic Plants.Property wording adapted to Photovoltaic Plants.
The Insured Property must be: The Insured Property must be:
Tested and connected to Tested and connected to
the National Grid or the National Grid or
networknetwork
Subsidized with FeedSubsidized with Feed--In In
Tariffs Tariffs Securely fixed to an Securely fixed to an
appropriate supportappropriate support
Certified by a national or Certified by a national or
local authority local authority
(e.g. PUA or IEC)(e.g. PUA or IEC)
30
Renewable Energies Policy Wording
PropertyProperty
Particular conditionsParticular conditions
The Insurer will indemnify The Insured in respect of installations on roofs of buildings which are not Unoccupied.
All ground installations must be secured by:
1. All bolts and or screws must be welded to its support, etc etc.
2. A microchip must be inserted inside each panel and programmed only to ’recognize’ the inverter used with the plant;
3. Each panel must be fitted with an internal Anti-theft GPS tracking system.
4. CCTV for commercial and / or On Ground Plants
Unoccupied means: any part of an Insured Location which is not used or visited by
The Insured on a day to day or regular basis for the purpose of the Business.
TheftTheft
31
Renewable Energies Policy Wording
Property and Machinery BreakdownProperty and Machinery Breakdown
Information the be provided by the InsuredInformation the be provided by the Insured
Questionnaire to be completed with, but not limited to:Questionnaire to be completed with, but not limited to:
1.1. Plant LocationPlant Location
•• Location and type of the BuildingLocation and type of the Building
•• Owner of the building, activity performed inside.Owner of the building, activity performed inside.
2.2. Plant Characteristics Plant Characteristics
•• Nominal total Power of the plant expressed in kW [PNominal total Power of the plant expressed in kW [PNN].].
•• Panel Technology, Tilt and Azimuth, With or without Tracking SysPanel Technology, Tilt and Azimuth, With or without Tracking System.tem.
•• Annual Expected Production expressed in kWh/year [PAnnual Expected Production expressed in kWh/year [PEXPEXP]]
3.3. Signed Contract with Israel Electric Corporation for Incentives Signed Contract with Israel Electric Corporation for Incentives and Feedand Feed--in tariffs in tariffs
32
Renewable Energies
33
Lack of SunLack of Sun
Renewable Energies Lack of Sun
The Insurer will indemnify The Insured in respect of a Loss resuThe Insurer will indemnify The Insured in respect of a Loss resulting from the lting from the
reduction in Gross Revenue caused by reduction in Gross Revenue caused by Lack of Solar Radiation or lightLack of Solar Radiation or light
The validity of the Guarantee is subject to:The validity of the Guarantee is subject to:
1.1. Complete coverage of the plant with Property and Machinery BreakComplete coverage of the plant with Property and Machinery Breakdown including down including
Business Interruption. Business Interruption.
2.2. Installation of a Installation of a Certified Photovoltaic Monitoring System (Black Box)Certified Photovoltaic Monitoring System (Black Box) which contains but which contains but
is not limited to:is not limited to:
a.a. Solar Irradiation sensorSolar Irradiation sensor and and temperature sensorstemperature sensors, ,
b.b. Inverter Monitoring SystemInverter Monitoring System,,
c.c. Power output measuring equipmentPower output measuring equipment, ,
d.d. Communications system, Ethernet or GSM / GPRS / UMTSCommunications system, Ethernet or GSM / GPRS / UMTS with web portal with web portal
showing all recorder data. showing all recorder data.
3.3. Signed Contract with Israel Electric CorporationSigned Contract with Israel Electric Corporation that certifies the plant admission to the that certifies the plant admission to the
FeedFeed--in tariff.in tariff.
Policy duration: 1 YearPolicy duration: 1 Year
1.1. Plant CharacteristicsPlant Characteristics
�� Nominal total Power of the plant expressed in kW [PNominal total Power of the plant expressed in kW [PNN].].
�� Modules technology, and manufacturer.Modules technology, and manufacturer.
�� Annual performance losses of the Silicon. Annual performance losses of the Silicon.
�� Tilt and Azimuth Tilt and Azimuth
�� With or without Tracking System.With or without Tracking System.
�� Location, Lat & Long.Location, Lat & Long.
2.2. Annual average solar radiation expected (PVGIS) expressed in kWhAnnual average solar radiation expected (PVGIS) expressed in kWh/m/m2 2 [I[IAA]]
3.3. Plant Losses [Plant Losses [ηη]]
4.4. Annual Expected Production expressed in kWh/year [PAnnual Expected Production expressed in kWh/year [PEXPEXP]]
34
Data to be provided by the InsuredData to be provided by the Insured
Lack of SunRenewable Energies
35
.kWh..kWh.
PV Panels
Inverter Meter
Sensor
Converts Solar Radiation into Electric Converts Solar Radiation into Electric
Energy according the formula:Energy according the formula:
PPESTEST = P= PN N * I* IMM * * ηη
DC AC
Measures Measures
solar radiationsolar radiation
IIMM
Records the Records the
amount of energy amount of energy
fed into the gridfed into the grid
PPEFFEFF
Solar Solar
radiationradiation
IIMM
Nominal Nominal
PowerPower
PPN N
LossesLosses
ηη
Renewable Energies Lack of Sun
36
Lack of SunLack of Sun
Renewable Energies Lack of Sun
At the end of each year, the insurer will send to the Insurance At the end of each year, the insurer will send to the Insurance Company the Company the
production value (Actual Production production value (Actual Production PPEFFEFF) and the data extracted from the Sensor ) and the data extracted from the Sensor
(Estimated Production (Estimated Production PPESTEST))
PVGISPVGIS InsurerInsurer
Threshold Production PThreshold Production PTHTHExpected Production PExpected Production PEXPEXP
Actual Production Actual Production PPEFFEFF
MeterMeter
Estimated Production PEstimated Production PESTEST
SensorSensor
The Insurer will set the Threshold Production The Insurer will set the Threshold Production PPTH TH as a percentage of the Expected as a percentage of the Expected
Production Production PPEXPEXP evaluated by the plant designer according to PVGIS websiteevaluated by the plant designer according to PVGIS website
37
Renewable Energies Lack of Sun
Actual Actual
Production Production
PPEFFEFF
Estimated Estimated
Production Production
PPESTEST
Threshold Threshold
Production Production
PPTHTH
Lack of Sun Lack of Sun -- ExampleExample
Expected Expected
Production Production
PPEXPEXP
TimeTime
[Years][Years]
Power Power
Production Production
[kWh/year][kWh/year]
YY11 YY33YY22 YY......
38
Misunderstandings Misunderstandings -- Lack of SunLack of Sun
Renewable Energies Lack of Sun
Lack of productionLack of production Lack of PerformancesLack of Performances
OverestimationOverestimation
of of
ProductionProductionWrong orientationWrong orientation
Designer and Designer and
Engineering Engineering
liability liability
Installer and Installer and
Engineering Engineering
liability liability
Photovoltaic Photovoltaic
Panels, and Panels, and
electronics electronics
ProductProduct
GuaranteeGuarantee
Cabling and Cabling and
Voltage Voltage
mismatchingmismatching
Installer liabilityInstaller liability
We donWe don’’t covert cover……
39
Renewable EnergiesRenewable Energies