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Renewable Power Exposures – What Can Go Wrong? Thursday, July 25, 2013, 8:00 a.m.
Ronald G. Behrens, ALCM, ARe, CEA, PE (inactive) Director of Risk Management Services Hartford Steam Boiler Inspection & Insurance Company Lisle, Ill. Ronald Behrens is the director of risk management services for the Hartford Steam Boiler Inspection & Insurance Company and works as the liaison between reinsured companies and the various HSB technical service units. He has more than 30 years of experience in equipment breakdown insurance and loss control. Prior to HSB, he was the engineering team manager for the Chicago branch of Kemper Insurance. Ron earned an electrical engineering degree from Valparaiso University. Ron received the Associate in Loss Control Management and Associate in Reinsurance designations from the Insurance Institute of America. He is also a certified Level I Infrared Thermographer member of the Institute of Electrical and Electronics Engineers. Ron was a licensed professional engineer in Illinois for more than 20 years, but currently is inactive. He holds a National Board of Boiler and Pressure Vessel Inspectors Inservice Commission and an Illinois Special Inspector Commission. Session Description: How does renewable energy technology change traditional farm exposures? Attendees will be provided an overview of photovoltaic solar panels and wind turbine energy. The scope will include: incentives, key equipment, systems, and applications, including “Net Metering”. The session will also cover property and liability exposures and typical loss experience.
Top Three Session Ideas Tools or tips you learned from this session and can apply back at the office.
1. ______________________________________________________________________
2. _______________________________________________________________________
3. ________________________________________________________________________
Renewable Power Exposures – What Can Go Wrong? Session Outline
Overview Basic Energy Terminology
• Electrical Power o Units of Power o Units of Energy o Types of Energy
• System Configurations • Grid Integration • Hybrid Power System
Renewable Energy Incentives
• Why Now? • Financial Incentives
o Federal o State
Solar Power
• Solar Radiant/Intensity Map • Solar Power
o Solar Thermal Solar Thermal Heating Thermal Solar Systems & Power Plants Concentrating Solar Thermal (CST) Farm Solar Power Applications
o Solar Photovoltaic Overview Installations Components
• PV Hardware Inverter (PCU) • PV Panels • Building Integrated PV (BIPV) • Energy Storage • Concentrated Solar Power (CSP)
Insurance Considerations o Solar Hazards and Perils o Solar Trackers
Wind Power
• U.S. Onshore Wind Resource Potential • U.S. Wind Capacity • Installed Wind Across the U.S. in MW • Small Wind vs. Large Wind
o Wind Turbine Size o How Are Wind Turbines Measured?
• U.S. Small Wind Power Growth
o Barriers to Small Wind Growth o Small Wind Turbines End Users
• Wind Turbine Overview • Small Wind Turbines • Wind Turbine System Additional Components • Advancements in Technology - Tilt-Down Tower Design • Towers, Turbulence & Durability • Small Wind Turbine Types
o Examples • Wind Turbine Power Generation
o Farm Applications Additional Insurance Issues
• Wind Turbine – Loss Experience • Wind Turbine – Equipment Breakdown Exposures • Wind Turbine Property Exposures • Small Wind Turbine Insurance Considerations
o Property Exposure – Fire o Lightning
• Wind Hazards and Perils o Foundation Cracking o Loss Examples
• Wind Farm on Farmers Property Exposures o Contractual Exposures o Indirect Exposures (Wind or Solar)
Typical Loss Control Recommendations
• Basic Maintenance Objectives • Keys to Reducing Exposure • Insurance & Underwriting Considerations
Q & A
RENEWABLE POWER EXPOSURES -WHAT CAN GO WRONG?
July 25, 2013Ron Behrens, HSB
Agenda
1. Basic Energy Terminology
2. Renewable Energy Incentives
3. Solar Power
Photovoltaic or Thermal
Key components
Insurance Considerations
4. Wind Power (Small)
Key components
Insurance Considerations
5. Typical Loss Control Recommendations
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 1 of 37
Renewable Energy
Source: UTCPowerPhoto Courtesy DOE/NREL
Source: U.S. Department of EnergySource: Capstone Turbine Corp.
Photo Courtesy DOE/NREL
It’s Headed Your Way
Geothermal
Wind
Microturbines
Fuel Cells
Solar
BASIC ENERGY TERMINOLOGY
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 2 of 37
Electrical Power
Units of Power
Watt (W) 1
Kilowatt (kW) 1,000
Megawatt (MW) 1,000,000
Gigawatt (GW) 1,000,000,000
Units of Power
Watt (W) 1
Kilowatt (kW) 1,000
Megawatt (MW) 1,000,000
Gigawatt (GW) 1,000,000,000
Terminology
Electrical Power
Units of Energy
Watt-hour (Wh)
Kilowatt-hour (kWh)
Megawatt-hour (MWh)
Units of Energy
Watt-hour (Wh)
Kilowatt-hour (kWh)
Megawatt-hour (MWh)
Terminology
× =
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 3 of 37
Clean
Generates no harmful emissions – can be fossil
Clean
Generates no harmful emissions – can be fossil
Electrical PowerTerminology
Alternative Energy
Non-fossil fuel based
Alternative Energy
Non-fossil fuel based
Renewable Energy
Fuel sources never depleted or constantly renewed
Renewable Energy
Fuel sources never depleted or constantly renewed
Green Energy
Renewable and environmentally preferable
Green Energy
Renewable and environmentally preferable
System Configurations
Stand-Alone System
8© 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
DC Interfaceand Regulation
Battery Bank
Load (DC)
PV Module
Source: http://www.1.eere.energy.gov
Farm water pump PV system
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 4 of 37
Equipment may be installed as stand-alone or connected to the utility grid, requiring approval of the utility. Technical and other requirements vary state by state, as do metering arrangements
Grid Integration
Grid-Connected Systems
Source: USDOE
Wind
Wind Turbine
Meter
InverterAC Load
A hybrid system combines several types of systems, such as a wind system with a solar and/or diesel engine-generator, and can provide reliable off-grid power around the clock.
Source: USDOE
Hybrid Power System
Hybrid Power Systems – Off-Grid
Combine multiple sources to delivernon-intermittent electric power
PV Modules
Wind
Wind Turbine
Battery Bank
AC or DC
Load
Generator (Farmer-Owned)
Regulationand Conversion
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 5 of 37
RENEWABLE ENERGY INCENTIVES
Incentives
Fuel Costs RisingFuel Costs Rising
Rising Energy DemandRising Energy Demand
Available TechnologyAvailable Technology
Aging of the GridAging of the Grid
Global Climate ChangeGlobal Climate Change
Why Now?
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 6 of 37
Financial Incentives
Production Tax Credit (PTC) renewed through 2013
Investment taxcredits = 30%
Modified Accelerated Cost Recovery (tax deduction)
50% depreciation bonus (tax deduction)
Federal grant programs
Federal loan guarantees
Production Tax Credit (PTC) renewed through 2013
Investment taxcredits = 30%
Modified Accelerated Cost Recovery (tax deduction)
50% depreciation bonus (tax deduction)
Federal grant programs
Federal loan guarantees
Federal
Financial Incentives
Renewable Portfolio Standards (RPS)
Renewable Energy Certificates (RECs)
Feed-in-Tariff (FiT)
Net Metering
State and/or Utility Loan Programs
http://www.dsireusa.org
Renewable Portfolio Standards (RPS)
Renewable Energy Certificates (RECs)
Feed-in-Tariff (FiT)
Net Metering
State and/or Utility Loan Programs
http://www.dsireusa.org
State
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 7 of 37
SOLAR POWER
Solar Radiant/Intensity Map
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 8 of 37
Solar Power
Solar Thermal
Hot Water
Electricity (large scale)
Solar Thermal
Hot Water
Electricity (large scale)
Two Types of Solar Power
Solar Photovoltaic Solar Photovoltaic
Solar Thermal Heating
Collector Types
Flat Plate
Integral Collector-Storage (ICS)
Evacuated-Tube
Active Systems
Pumps
Direct vs.. Indirect Circulation
Passive Systems
No Pumps
Natural Circulation
Collector Types
Flat Plate
Integral Collector-Storage (ICS)
Evacuated-Tube
Active Systems
Pumps
Direct vs.. Indirect Circulation
Passive Systems
No Pumps
Natural Circulation
Solar Water Heating Panels. Courtesy of DOE/NREL
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 9 of 37
Thermal Solar Systems & Power PlantsSun’s Radiation Energy is Converted into Heat
HVAC Collector Systems
Use of air or water to transfer heat
HVAC Collector Systems
Use of air or water to transfer heat
Parabolic Trough Systems
Most proven & deployed
Parabolic Trough Systems
Most proven & deployed
Solar Power Towers
More efficient vs. trough systems
Better energy storage capability
Solar Power Towers
More efficient vs. trough systems
Better energy storage capability
Source: Stiebel Eltron GmbH & Co. KG
1. Collector2. Solar control3. Hot-water store4. Follow-on heating with a heater unit
Concentrating Solar Thermal (CST)
Windstorms
Impact
Hail, Flying Objects, Vandalism
Fire
Molten Salt Freeze
Theft
Windstorms
Impact
Hail, Flying Objects, Vandalism
Fire
Molten Salt Freeze
Theft
Property Exposures
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 10 of 37
On-the-farm solar thermal heating not widespread
More popular is Photovoltaic (PV); converts sunlight to direct current (DC)
PV-charged batteries operate: pumps, gates, lighting systems, security systems, portable electronic equipment, etc.
Unusual equipment – exposed to the elements
Farm Solar Power Applications
© 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Solar Photovoltaic
Fixed vs.. Tracking
Rigid vs.. Flexible
Concentrating
Fixed vs.. Tracking
Rigid vs.. Flexible
Concentrating
Overview
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 11 of 37
Solar Photovoltaic
Overview Cost Depends of Size: Residential: $5 -$6 per wattCommercial: $4 per wattUtility: $2.40 per watt
Output: 15 W/ft²
Size: Farm/Residential: 4-10 kWRooftop: 200 kW to 5 MWUtility: 10 MW to 100 MW+
Inverter
Cost: US $4,000/kWLife: 10–12 years
Cost Depends of Size: Residential: $5 -$6 per wattCommercial: $4 per wattUtility: $2.40 per watt
Output: 15 W/ft²
Size: Farm/Residential: 4-10 kWRooftop: 200 kW to 5 MWUtility: 10 MW to 100 MW+
Inverter
Cost: US $4,000/kWLife: 10–12 years
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
UtilityNon-ResidentialResidential
Solar Photovoltaic
Installations
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 12 of 37
Solar Photovoltaic
Inverter (power conditioning unit) –convert DC electricity to AC
Panel mount – keep the panel oriented toward the sun
Combiner boxes –consolidates strings
Storage – store extra energy (batteries)
Disconnects, fuses, and diodes
Inverter (power conditioning unit) –convert DC electricity to AC
Panel mount – keep the panel oriented toward the sun
Combiner boxes –consolidates strings
Storage – store extra energy (batteries)
Disconnects, fuses, and diodes
Components
PV HardwareInverter (PCU)
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Large Inverter Microinverter
Used to convert DC to AC
Should be at least 90% efficient
10-year life expectancy
Microinverter alternative
Photos Courtesy of DOE/NREL
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 13 of 37
PV Panels
Proven technology
Commercially used
13–19% efficient
Proven technology
Commercially used
13–19% efficient
27 © 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Selection of Modules Photo Courtesy of DOE/NREL
Building Integrated PV (BIPV)
PV systems are being integrated into building components and materials
PV integrated into building awnings, windows, and rooftop shingles
PV systems are being integrated into building components and materials
PV integrated into building awnings, windows, and rooftop shingles
28 © 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Shingles
Awning
Windows
Photos Courtesy of DOE/NREL
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 14 of 37
Energy Storage
Battery banks
Mainly used in stand-alone systems
Additional hardware required
Charge controller
Battery banks
Mainly used in stand-alone systems
Additional hardware required
Charge controller
29 © 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Battery Bank Installations
Photo Courtesy of DOE/NREL
Concentrated Solar Power (CSP)
Concentrating Solar Photovoltaic (CPV)
Uses mirrors, parabolic dish systems, or Fresnel lenses to concentrated sunlight onto a high-efficiency PV cell
Concentrating Solar Thermal (CST)
Uses mirrors, parabolic dish systems, or parabolic trough systems to heat a working fluid which is then used to generate electricity
Concentrating Solar Photovoltaic (CPV)
Uses mirrors, parabolic dish systems, or Fresnel lenses to concentrated sunlight onto a high-efficiency PV cell
Concentrating Solar Thermal (CST)
Uses mirrors, parabolic dish systems, or parabolic trough systems to heat a working fluid which is then used to generate electricity
Configurations
Photo Courtesy of DOE/NREL
Two primary concentrating solar
technologies
Photovoltaic Concentrator
Two primary concentrating solar technologies
Photovoltaic Concentrator
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 15 of 37
Solar Photovoltaic
Inverter
Impact Damage
Wind Damage
Fire Loss Potential
Roof Penetrations
Lightning
Inverter
Impact Damage
Wind Damage
Fire Loss Potential
Roof Penetrations
Lightning
Insurance Considerations
Solar Hazards and Perils
32
Example of Snow Exposure
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 16 of 37
Solar Trackers
Pinion gear missing/sheared.
Pinion gear missing/sheared.
Failure of axis drive machinery
WIND POWER
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 17 of 37
Wind Power
US Onshore Wind Resource Potential
Data Source: AWS Truewind, LLC, for windNavigator® for the National Renewable Energy Laboratory
U.S. Wind Capacity
Megawatt
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
7/1/2013 36© 2011 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 18 of 37
Installed Wind Across the US in MW
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Small Wind vs. Large Wind
38 © 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
70 ft, 1.8 kW Wind Turbine 224 ft, 1,000 kW Wind TurbinePhoto Courtesy of DOE/NREL
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 19 of 37
50 ft
301 ft
Wind Turbine Size
Small Wind vs. Large Wind
How are Wind Turbines Measured?
Size = OutputSmall Wind is 100 kW
Size = OutputSmall Wind is 100 kW
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 20 of 37
0
5,000
10,000
15,000
20,000
25,000
30,000
Small Wind UnitsSold
Capacity Sold (kW) Sales of Units Sold($U.S. x 10,000)
U.S. Small Wind Power Growth
U.S. is world’s largest market for small wind
7,303 small wind turbines sold in U.S. in 2011
80% were manufactured in U.S.
© 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved. 41
2,1003,1003,2004,6714,3248,3309,102
10,3869,8207,8117,303
2,1003,1003,2004,8783,2858,5659,748
17,37420,37525,61819,033
(not avail.)(not avail.)(not avail.)
1,7191,1053,5814,3057,3519,096
13,92211,498
Year Units kW Sales, US, $k
Growth of U.S. Small Wind Market
Source: American Wind Energy Association (AWEA)
20012002200320042005200620072008200920102011
Zoning
Performance
Supply chain
National net metering policy
Permitting and regulations
Fossil fuel prices
Intermittent power generation
Energy storage as a solution?
Back-up power generation?
Zoning
Performance
Supply chain
National net metering policy
Permitting and regulations
Fossil fuel prices
Intermittent power generation
Energy storage as a solution?
Back-up power generation?
Barriers to Small Wind Growth
42 © 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 21 of 37
Small Wind Turbines End Users
Homes, farms, schools, communities, and small factories – generally in rural areas
Owned by facility – located on site
Supplements the electrical needs:
Homes and battery chargers (
Overview
Small Wind Turbines
Blades
Tail
Nacelle
Tower
Generator
Rotor
Shaft
Photo Courtesy of DOE/NREL
Wind Turbine System Additional Components
Foundation Gearbox Power control
Blade pitch Yaw (orientation
to the wind)
Transformer
Power Electronics
Foundation Gearbox Power control
Blade pitch Yaw (orientation
to the wind)
Transformer
Power Electronics
46
Photo Courtesy of DOE/NREL
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 23 of 37
Small Wind Turbines
Installed cost range is $2,300/kW to $10,000/kWAverage is $6,300/kW
Types:
Direct Drive
Gear Box
AC vs. DC
Upwind vs. Downwind
Size: up to 100 kW
Installation:
Free Standing vs.. Guyed
Installed cost range is $2,300/kW to $10,000/kWAverage is $6,300/kW
Types:
Direct Drive
Gear Box
AC vs. DC
Upwind vs. Downwind
Size: up to 100 kW
Installation:
Free Standing vs.. Guyed
Overview
Photo Courtesy of DOE/NREL
Advancements in TechnologyTilt-Down Tower Design
48
Tilt-up tower in the normal operating position
Tilt-up tower in the lowered position formaintenance or hurricanes
© 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 24 of 37
Towers, Turbulence & Durability
Short towers result in:
Reduced wind speeds, and less electricity
Compromised reliability – more wear and tear from turbulence
30’ Rule – rotor should be 30’ above any obstacles to get above turbulentwind shear
49 © 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Wind TurbulenceWind Turbulence Turbulence slows and degrades the wind resource, both upwind and downwind of obstructions. Note the height (H) and distance of turbulence behind an obstruction—an unsuitable area for a wind turbine.
2H 20H
H
Wind Direction2H
Source: Home Power magazine
Horizontal Axis Wind Turbine (HAWT):
Requires smooth wind
Requires a tail or yaw control
Horizontal Axis Wind Turbine (HAWT):
Requires smooth wind
Requires a tail or yaw control
Small Wind Turbine Types
Vertical Axis Wind turbine (VAWT):
Functions in shifty wind
Functions in gusty wind
Quiet and bird friendly
Current limited capacity
Vertical Axis Wind turbine (VAWT):
Functions in shifty wind
Functions in gusty wind
Quiet and bird friendly
Current limited capacity
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 25 of 37
Small Wind Turbine Examples
Bergley 10 kW BWC Excel America's best selling residential wind turbine(3-bladed)
Horizontal Axis Wind Turbine(HAWT)
Horizontal Axis Wind Turbine(HAWT)
Home Energy Ball 0.50 kW V100 residential turbine
Helix 1 kW D361 residential wind turbine
Vertical AxisWind Turbine(VAWT)
Vertical AxisWind Turbine(VAWT)
Mariah 1.2 kW Windspireresidential turbine
Wind Turbine Power GenerationFarm Applications – Responsibilities and Liabilities
52 © 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Who owns the equipment ?
Owner / Operator
Lease
No ownership by Farmer
Who owns the footprint/land ?
Owner / Operator
Lease with production %
Lease with no production
Who owns the equipment ?
Owner / Operator
Lease
No ownership by Farmer
Who owns the footprint/land ?
Owner / Operator
Lease with production %
Lease with no production
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 26 of 37
Wind Turbine Power GenerationFarm Applications
© 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Far too many “do-it-yourself” installations
Too many “marginal” manufacturers & installers
Many “pole mounted” and “roof top” units seem to have serious issues
Far too many “do-it-yourself” installations
Too many “marginal” manufacturers & installers
Many “pole mounted” and “roof top” units seem to have serious issues
Wind Turbine Power GenerationFarm Applications
© 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Photo Courtesy of USDA
Additional insurance issues:
Unusual machinery and electrical equipment
Outside contractors
Business interruption and grid obligations
Liability ?? – electrical, noise, FOD, ice, etc.
Additional insurance issues:
Unusual machinery and electrical equipment
Outside contractors
Business interruption and grid obligations
Liability ?? – electrical, noise, FOD, ice, etc.
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 27 of 37
Image 16177 Courtesy DOE/NREL
16 135
25
0
5
10
15
20
25
Lightning Breakdown Wind Damage Unknown
Cause of Loss, %
2722
125 4
048
1216202428
Gearbox Blade Generator MEA Transformer
Cause by Component, %
Wind Turbine – Loss Experience
Note: These losses were for mostly large wind turbines
Wind Turbine Equipment Breakdown Exposures
56
3.5 kW
© 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Blade damage
Foreign object impact
Erosion of leading edge
Blade tip deflection hitting tower
Cracks and fatigue failure
Tower collapse – structural fatigue
Overspeed damage
Rotor/generator bearing failures
Gearbox – lubrication viscosity and cleanliness
Miscellaneous electrical apparatus: slip rings, brushes, inverter, controls
Blade damage
Foreign object impact
Erosion of leading edge
Blade tip deflection hitting tower
Cracks and fatigue failure
Tower collapse – structural fatigue
Overspeed damage
Rotor/generator bearing failures
Gearbox – lubrication viscosity and cleanliness
Miscellaneous electrical apparatus: slip rings, brushes, inverter, controls
Image Source: Photo by J.D. Redinger
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 28 of 37
Wind Turbine Property Exposures
Weather
Icing/hail
High winds
Lightning
Earth movement and flood
Weather
Icing/hail
High winds
Lightning
Earth movement and flood
57
Small Wind Turbine
Maintenance
Size
Fire
Vandalism
Theft
Tower Collapse
Maintenance
Size
Fire
Vandalism
Theft
Tower Collapse
Insurance Considerations
Photo Courtesy of DOE/NREL
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 29 of 37
Property Exposures – Fire
59
Lightning
60
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 30 of 37
Wind Turbine
Loss Cause: 25% “Unknown”.
Series losses with blades and gear sets result from design, workmanship, and construction
Older units now obsolete and out of production
Loss Cause: 25% “Unknown”.
Series losses with blades and gear sets result from design, workmanship, and construction
Older units now obsolete and out of production
Considerations
61
Wind Turbine Power GenerationFarm Applications
Very expensive repair or replacement
Special expertise required
Special crane(s)
Very expensive repair or replacement
Special expertise required
Special crane(s)
© 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 31 of 37
Wind Hazards and Perils
63
Example of foundation Cracking
Wind Turbine Power GenerationLoss Example
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2013 NAMIC Agricultural Risk Inspection School - Behrens Page 32 of 37
Wind Turbine Power GenerationLoss Example
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Wind Farm on Farmer’s Property.Exposures?
66 © 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
1,600 kW
Photo Courtesy of DOE/NREL
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 33 of 37
Contractual Exposures
Time element exposures
Contingent exposures
Power company contracts
Service and maintenance agreement
Monitoring agreement
Jurisdictional incentive contracts
Time element exposures
Contingent exposures
Power company contracts
Service and maintenance agreement
Monitoring agreement
Jurisdictional incentive contracts
67
Know your contractual exposures!
Indirect Exposures(Wind or Solar)
Additional cost to purchase power
Utility Penalty?
Is there a “Power Purchase Agreement”?
Renewable Energy Certificates
Who owns the equipment?
Additional cost to purchase power
Utility Penalty?
Is there a “Power Purchase Agreement”?
Renewable Energy Certificates
Who owns the equipment?
Business Interruption
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 34 of 37
TYPICAL LOSS CONTROL RECOMMENDATIONSFOR WIND AND SOLAR EQUIPMENT
Basic Maintenance Objectives
Clean Cool
Dry Tight
KeepEquipment
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2013 NAMIC Agricultural Risk Inspection School - Behrens Page 35 of 37
Keys to Reducing Exposure
Experienced installers
Established manufacturers
No experimental, prototype
New equipment under warranty
Some sort of service agreement, regular inspection
Equipment is visible and accessible
Properly designed for climate (temperature, lightning, wind)
Experienced installers
Established manufacturers
No experimental, prototype
New equipment under warranty
Some sort of service agreement, regular inspection
Equipment is visible and accessible
Properly designed for climate (temperature, lightning, wind)
Manufacturer & model
Manufacturer & model Size (kW output)Size (kW output) Number of unitsNumber of units
Age(retrofit date?)
Age(retrofit date?)
WarrantyWarrantyService &
maintenance agreement
Service & maintenance agreement
Monitoring agreementMonitoring agreement
Loss history (serial loss
issues)
Loss history (serial loss
issues)Tower heightTower height TIV & valueper unit
TIV & valueper unit
Business Income & Extra ExpenseBusiness Income & Extra ExpenseAnnual power
productionValue
per unit
Insurance & Underwriting Considerations
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 36 of 37
QUESTIONS
THANK YOU VERY MUCH FOR YOUR ATTENTION25 July 2013Ron Behrens, HSB
2013 NAMIC Agricultural Risk Inspection School - Behrens Page 37 of 37
Renewable Power Exposures – What Can Go Wrong?
Recommended Resources
www.dsireusa.org
www.awea.org
DSIRE: Summary of Net Metering Policies in the U.S.
www.irecusa.org
The Impact of Rate Design and Net Metering on the Bill Savings from Distributed
PV for Residential Customers in California, Naïm Darghouth, Galen Barbose, and
Ryan Wiser, Lawrence Berkeley National Laboratory, April 2010.
www.gracelinks.org/835/energy-program
www.hsb.com
http://www.dsireusa.org/http://www.awea.org/http://www.dsireusa.org/incentives/index.cfm?SearchType=Net&&EE=0&RE=1http://www.irecusa.org/http://eetd.lbl.gov/ea/EMS/reports/lbnl-3276e.pdfhttp://eetd.lbl.gov/ea/EMS/reports/lbnl-3276e.pdfhttp://www.gracelinks.org/835/energy-programhttp://www.hsb.com/
Behrens FINALBehrens FINALSession Outline
Behrens FINAL