GCube Insurance’s Post

Excellent and important article on hail stow from Darren Askari of GCube Insurance. Some additional points and clarifications: 1. Trackers are typically not stowed flat for wind, but rather at a slight angle, to prevent tortional galloping (which can cause microcracking / damage in the panels). There is also a flood stow position that is flat.  2. The table of losses in the document represent insured losses. There would be more events of >$50m here if not for hail sublimits in place on insurance policies. 3. While some projects have intentionally stowed for wind in advance of hailstorms, several others attempted to stow for hail but the stowing protocol did not fully work. Not defensively stowing for hail resulted in more damage than would have occurred for a fully stowed project. 4. As Darren notes, project operators must decide whether or not they stow for wind or hail. However, hail is the far greater threat, as the GCube data clearly notes (2% of the loss events but 55% of the damage). When there is a chance of hail, hail stow measures should be taken. Sites need to be built to withstand accompanying winds when stowing for hail. Training and weather monitoring measures are needed to assure sites stow early and often so there are no false positives (hail events occurring without defensive stow). Without these steps, solar risks in hail-prone zones will become more and more challenging to insure at commercially reasonable terms. 5. Hail sensors can be provided on sites to capture the size and frequency of hail impact. Such information is useful post-event in understanding how well hail mitigation efforts worked. Sites are often unmanned, so this hailstone size and impact energy may not otherwise be known. 6. In addition to the hail mitigation points Darren mentioned, solar panel manufacturers are also exploring using chemically-treated glass, which is 5-10x stronger than glass used in solar farms today. This chemically-treated glass is more expensive than existing glass, but the cost of the modules is expected to be only modestly more expensive, given that glass represents a small portion of the cost of the module. More resilient panels will help, but hail stow remains necessary. Insurers, banks, clients, OEMs, operators, owners and others all need to better understand the others' issues around hail exposure for solar farms. Insurance costs have risen for projects subject to hail exposure, and coverage reduced, impacting viability of these and future projects. Measures to mitigate hail risk - more resilient design, effective hail stow measures, etc. - can add costs to the project, also potentially impacting project viability. So there is a balance. Collaborative efforts are needed so all parties better understand their related concerns and find solutions to help make projects built more resiliently while also being financially viable. In some cases, this may require redesign or relocation of future projects. #resilience

Is your wind farm prepared for the unexpected? Learn from Iowa's recent tornado disaster. A powerful tornado recently struck a wind farm in Iowa, causing significant damage to several wind turbines. This rare direct hit resulted in the crumpling of wind towers, highlighting the vulnerability of renewable energy infrastructure to extreme weather events. The incident underscores the need for robust risk management strategies in the renewable energy sector. Impact on Industry Executives For industry executives, this event is a stark reminder of the potential risks associated with renewable energy investments: (1) Financial Losses: The damage to the wind farm could lead to substantial financial losses and operational disruptions. (2) Strategic Decision-Making: Consider the implications for site selection, infrastructure resilience, and investment in advanced weather forecasting technologies. (3) Innovation Needs: Emphasizes the importance of innovation in designing more resilient wind turbines and other renewable energy infrastructure. Risk Management & Insurance Considerations The tornado's impact on the Iowa wind farm is highly relevant for professionals focused on risk management and insurance. Key considerations include: (1) Comprehensive Risk Assessments: Account for extreme weather events. (2) Tailored Insurance Solutions: Ensure wind farms and other renewable energy projects are adequately protected. (3) Risk Transfer Strategies: Explore catastrophe bonds or parametric insurance to mitigate financial exposure from similar future events. Here is the full article: https://apnews[com]/article/tornado-iowa-wind-farm-turbines-feb9913c3d53915ffa420e277af4bb6d [Copy this link, paste it on the Google search bar, and replace "[com]" with just ".com" #RiskManagement #Insurance #EnterpriseRiskManagement #RenewableEnergy #WindFarms #ExtremeWeather #DisasterPreparedness #InfrastructureResilience #ParametricInsurance #CatBonds #WeatherForecasting #TornadoImpact #EnergySector #RiskAssessment #RegulatoryCompliance #IndustryInnovation #ClimateChange

Top stories today Weekend press: Energy firms can force-fit prepayment meters again https://buff.ly/48McT7Q In the latest weekend press round-up Ofgem has granted three energy providers permission to begin forced installations of prepayment meters; the nation's climate policy led a senior Tory to quit; and the spotlight remains firmly on Thames Water as its new boss joins. 📈 PPM self-disconnections rise by 650% since crisis began https://buff.ly/3H8yj2S The number of customers self-disconnecting from their prepayment meter (PPM) has risen by more than 650% since the start of the energy crisis. In total, there were almost 22,000 cases of PPM customers reporting they had self-disconnected from their energy supply last year, Citizens Advice figures show. That represents a 42% year-on-year increase and is 657% higher compared to 2021 when just over 2,900 self-disconnections were reported. 🪁 Gas CCGTs to be kept online to cover offshore wind delays https://buff.ly/48nJ11r More gas CCGTs (combined cycle power plants) are forecast to remain online in 2030 than previously anticipated because the UK will fall short of its target to roll out 50GW of offshore wind generation by then. CCGTs will be needed to cover delays to the rollout of offshore wind which largely results from the failure of the last contracts for difference (CfD) auction round. 💧 Thames Water shareholder backs firm despite devaluation https://buff.ly/41RcbUz Thames Water’s second largest shareholder, Universities Superannuation Scheme (Ltd) (USS), has reaffirmed its support of the water company and its turnaround plan. USS, which holds a 20% stake in Thames, said it still sees the utility as a long-term investment opportunity, and itself as a “patient” investor. That is despite slashing £600 million off of the valuation of its stake.

The #RenewableEnergy market is looking for new solutions to mitigate the persistent issue of #hail to #solar farms, so that #insurance protection can continue to support the energy transition. That’s the conclusion of Insurance Insider’s latest article on the topic, reporting by Samuel Casey, which features comments from GCube’s CEO, Fraser McLachlan. The issue of hail has been brought to light after a further major loss to a solar project in Texas. One of the main issues with hail is that solar farms are now being built in more remote, hail-prone areas than before, which is compounded by newer and thinner solar panel glass. Another key interrelated challenge for the market is the lack of historical climate data, which helps model the risk. “I think that a more practical physical solution like that [netting] is going to be the way to go. This will allow people to buy up their sub-limit at probably a more reasonable cost than if these projects weren’t protected”, said Fraser. To read the full article click here: https://lnkd.in/ejN99rCX

Solar Panel Leak, Daniel the Adjuster  https://lnkd.in/eJrbwqz2 How do I get on a 2 story House? Do solar panels leak? Insurance adjuster tips #solar #Insurance #adjuster

California, Texas, and North Carolina are among the top states for solar and wind energy, but they are also susceptible to wildfires, hurricanes, and flooding. Explore the challenges of catastrophic risk in the #RenewableEnergy sector. #CATRisk

SOLAR PANELS: RISK & INSURANCE CONSIDERATIONS __ Rising energy costs, green energy targets and financial incentives offered by the government have driven an uplift in the use of solar power. Yesterday's fire at Sydney Olympic Park Aquatic Centre serves as a poignant reminder of the potential liabilities associated with solar panels. The fire, seemingly caused by an electrical fault in a solar panel fixed to the roof of the building, resulted in the emergency evacuation of thousands of people attending a swimming carnival. In our recent article below, we outline some of the risks and insurance implications which should be considered before installing Photovoltaic (PV) panels on the facades and roofs of commercial assets. https://lnkd.in/grNsWCdw Please reach out to the Bellrock Team if you require advice on this topic. #PVPanels #SolarPanels #PropertyInsurance #SolarPowerRisks #RiskAdvisory #InsuranceNews

Xcel Energy on Thursday filed a $1.9 billion wildfire mitigation plan with the Colorado Public Utilities Commission that includes adding hundreds of weather stations near power lines, updating pole and equipment inspection schedules in high-risk areas, and expanding its vegetation management program. If the plan is approved, incremental bi-annual changes would increase a typical residential bill approximately 9.56%, or almost $9 per month, by 2028. Xcel has been named in almost 300 lawsuits in Colorado alleging its power lines helped spark the Marshall fire which started in 2021 and caused more than $2 billion in damages. Xcel’s Southwestern Public Service also faces lawsuits in connection with the Smokehouse Creek Fire in the Texas Panhandle this year. Xcel Energy Colorado Public Utilities Commission Blog – ESG – Climate Change – Lahaina Fire – Hawaiian Electric and Maui County - https://lnkd.in/g_5sJzxw

California, Texas, and North Carolina are among the top states for solar and wind energy, but they are also susceptible to wildfires, hurricanes, and flooding. Explore the challenges of catastrophic risk in the #RenewableEnergy sector. #CATRisk