Battery energy storage is a critical technology to reducing our dependence on fossil fuels and build a low carbon future. Renewable energy generation is fundamentally different from traditional fossil fuel energy generation in that energy cannot be produced on demand. Coal can be burned whenever power is needed—wind and solar energy rely on the wind blowing and the sun shining. Solar energy presents a particular problem in that it cannot be pro....
As technological advancements occur through new developments in the offshore wind energy industry, there will be times where these large projects may impact the cultural heritage of humanity's past in our waters. Federal, State, and Tribal government agencies in the United States have regulations in place to protect archaeological cultural resources within and outside their territorial boundaries. The success of offshore projects relies on buildi....
The growth and rapid evolution of the offshore wind industry and the introduction of new, US Jones Act-compliant offshore wind vessels mean that wind operations may involve the use of Jones Act seamen, maritime employees, and other non-maritime employees. Such workers variously fall under the purview of the Jones Act, the Longshore and Harbor Workers’ Compensation Act (LHWCA), and other laws that determine their rights and remedies in cases of ....
Identifying trees, grasslands, and wetlands on landscape-scale project sites has never been simple or clear-cut.
Aerial photos are subject to divergent interpretations. Field surveys incur higher costs from hours spent documenting and mapping observations, and datasets such as the National Land Cover Database can be too coarse to capture nuances in the terrain.
While landscapes change constantly, regulatory officials request informati....
T.R. Ludwig, CEO of Brooklyn SolarWorks and treasurer for New York State’s Solar Energy Industry Association (NYSEIA), was recognized for his contributions to New York State’s transition to renewable energy at City & State’s inaugural Trailblazers: Clean Energy Awards ceremony.
Ludwig was recognized for his commitment to making renewable energy accessible for New York City residents, both technically and financially.
T.R. is a key advocate and advisor for policies that support the development of solar in New York City. Notably, T.R. worked alongside New York City’s mayor, Eric Adams, tailoring his City of Yes Carbon Neutrality amendments to relax restrictive zoning regulations that have historically impeded the installation of solar.
In addition, Brooklyn SolarWorks was commended for their patented solar canopy, which is specifically designed to maximize system sizes throughout New York City and other urban environments, by optimizing solar development on flat roofs and parking lots.
City & State’s Trailblazers: Clean Energy Awards highlight a cross-section of leaders at the forefront of the clean energy transition, operating in a variety of fields including renewable energy, finance, engineering, and education
It’s been 10 years since windtest north-america opened its doors for the first time in Estherville, Iowa. Since then the company has worked on more than 100 wind energy projects in North America to prove, improve and enhance the validity, quality, efficiency and long-term return on investment of wind energy companies.
Germany-based windtest grevenbroich gmbh had already been serving renewable energy clients in North America since 2007. Increasing wind energy development and demand for precision testing and measurement drove its decision to locate a subsidiary in the USA. In May 2014, windtest north-america began operating at the Sustainable Energy Resources and Technologies (S.E.R.T.) Center of Iowa Lakes Community College.
Monika Krämer, windtest grevenbroich managing director and windtest north-america president, said the company considered multiple locations on the East and West Coasts, but Estherville stood out.
“Rapidly expanding wind energy development in the area at the time, pro-wind state government policies, the centralized location and the potential for cooperation with the Iowa Lakes Community College Wind Energy and Turbine Technology Program were all significant advantages,” Krämer recalls. “All of that, along with the exceptional assistance and support from the Iowa Lakes Corridor Development Corporation and many others in the area made Estherville an obvious choice.”
Kathy Evert, the former ILCDC president & CEO, was instrumental in windtest’s decision to locate in Iowa. “The potential synergies between windtest, Iowa Lakes Community College and Estherville were clear from the beginning,” she said. “The company’s commitment to making a long-term investment in Iowa has been mutually beneficial, to say the least. I’m delighted to be able to congratulate windtest – and by extension the college and community – on 10 successful years of co-location and cooperation, and I look forward to their continuing success.”
Jasmin Holzinger, windtest north-america chief operating officer, said, “We’re tremendously grateful to the citizens, businesses and community leaders of Estherville, Emmet County and the state of Iowa. We’re excited for what the next 10 years will bring.”
windtest grevenbroich and windtest north-america provide a full slate of testing and technical consulting services for turbine manufacturers, investors, lenders, developers, wind farm owners and grid operators, including precision measurement, analysis and validation for power performance, mechanical load, sound emission, acoustic vibration, blade alignment, grid integration and performance assessment. Their clients include turbine manufacturers, investors, lenders, developers, wind farm owners and grid operators, as well as businesses manufacturing, aviation and other industries where test bench and field measurements are necessary. Over the course of more than 27 years in the international wind energy industry, windtest grevenbroich has participated in various large projects in the United States as well as Europe, India, China and other countries.
The U.S. Department of Energy (DOE) Solar Energy Technologies Office (SETO) announced the 10 teams selected to advance to the final phase of the multi-million dollar American-Made Solar Prize Round 7. The finalists will each receive $100,000 in cash and compete in the next stage of the competition. Three of the finalists also split a $50,000 bonus cash prize for winning the Justice, Equity, Diversity, and Inclusion (JEDI) Contest, which encourages solutions that enable underserved communities to overcome systemic barriers to solar deployment.
Illumination Solar Training (Jefferson, WI) – JEDI Contest Winner
NC Solar Inverters (Cary, NC)
Pavilion Solar (Miami, FL)
Solar Unsoiled (Durham, NC)
In the coming months, finalists will bring their concepts closer to commercialization and present their innovations at the Go! Demo Day at the RE+ conference in September 2024. Two teams will then be named grand prize winners, each earning $500,000 in cash and additional support vouchers. Select teams may also be awarded additional funds through their participation in the JEDI contest.
SCHMID GmbH (the "Company" or "SCHMID," and together with its consolidated subsidiaries, the "SCHMID Group" or "Group"), a global solutions provider for the high-tech electronic, photovoltaics, glass, and energy systems industries, and Pegasus Digital Mobility Acquisition Corp. ("Pegasus") (NYSE: PGSS) announced the completion of their business combination. As a result, starting April 30, 2024 the existing company’s legal name is SCHMID Group N.V. Today, SCHMID Group N.V.'s shares will begin trading on the Nasdaq Global Select Market under the ticker symbol “SHMD”.
The business combination, first announced on May 31, 2023, has resulted in the initial listing of SCHMID on NASDAQ in New York. SCHMID believes that the completion of the business combination and public listing further enables SCHMID to win large scale deploymentcontracts,attract top talent andprovide a currency for targeted acquisitions.
SCHMID is a 160-year-old technology company in its fifth generation of family ownership and management. SCHMID focuses on developing customized equipment and process solutions for multiple industries including high-tech electronics, photovoltaics, glass and energy systems.
With expertise in applying & connecting technical layer stacks paired with being a supplier of capital equipment – SCHMID provides solutions for advanced packaging on panel level size, high-end printed circuit boards as well as PV & Glass manufacturing and energy storage. SCHMID solutions are underpinned by a commitment to sustainable innovation.
R&D is geared to help customers achieve their CO2 neutrality targets and greener manufacturing.
SCHMID signed non-redemption and investment agreement for approximately USD 26 million in committed capital with the business combination including from various institutional investors as well as USD 8 million from Pegasus Digital Mobility Sponsor LLC, the sponsor of Pegasus.
Christian Schmid, CEO of the SCHMID Group N.V., commented, "Today marks a major milestone for SCHMID Group and the future of our company. As a fifth-generation family business, we’ve been innovating for over 160 years. Today, we solve for the most-pressing challenges in Electronics – our solutions help unlock the future of AI. By taking SCHMID public, we strengthen our global position and accelerate our sustainable innovation for the benefit of all stakeholders."
Sir Ralf Speth, CEO and Chairman of Pegasus, added, “Seeing this deal come to a close brings me great excitement for the future. I look forward to joining SCHMID’s Board of Directors to leverage my deep expertise in the Automotive sector to support SCHMID’s growth and expansion into new markets.”
Advisors
Clifford Chanceis acting as U.S., German and international legal counsel to Pegasus, and Appleby is acting as Cayman counsel to Pegasus. Gleiss Lutz, Stibbe and Fenwick & West are advising SCHMID as legal counsel.BizLove is advising SCHMID on investor relations.
The N.C. Clean Energy Technology Center (NCCETC) released its Q1 2024 edition of The 50 States of Grid Modernization. The quarterly series provides insights on state regulatory and legislative discussions and actions on grid modernization, utility business model and rate reforms, energy storage, microgrids, and demand response.
The report finds that 49 states, as well as the District of Columbia and Puerto Rico, took actions related to grid modernization during Q1 2024 (see figure below), with the greatest number of actions relating to energy storage deployment (52), overall utility business model reforms (49), performance-based regulation (26), interconnection rules (24), distribution system planning (23), and time-varying rates (23).
A total of 567 grid modernization actions were taken during Q1 2024. New York, Massachusetts, Michigan, California, Connecticut, and New Jersey took the greatest number of actions during the quarter, followed by Hawaii, Minnesota, Illinois, Missouri, Maine, New Hampshire, and Ohio.
Q1 2024 Legislative and Regulatory Action on Grid Modernization
The report discusses three trends in grid modernization actions taken in Q1 2024: (1) states considering the use of grid-enhancing technologies, (2) states establishing frameworks to develop virtual power plants, and (3) states evaluating microgrid potential and program design.
"This quarter there continued to be a lot of activity focusing on distribution system enhancement,” noted Vincent Potter, Senior Policy Analyst at NCCETC. “Deployment of advanced management systems, microgrid systems, and smart grid enhancements were proposed or underway in several states, as well as investigations into customer and grid benefits of these technologies.”
The report notes the top five policy developments of Q1 2024 were:
Maryland lawmakers passing legislation advancing virtual power plants;
Massachusetts utilities filing final electric sector modernization plans;
Connecticut regulators moving forward on AMI and performance incentive mechanisms;
The Colorado Public Utilities Commission approving guidelines for a virtual power plant pilot; and
Maine releasing studies on long-duration energy storage and utility ownership of storage.
“More and more states are researching virtual power plants, aggregated distributed energy resources, and distributed energy resource management systems for alternative sources of generation and load control, and a few have even reached the program deployment,” observed Rebekah de la Mora, Senior Policy Analyst at NCCETC. “Progress varies across states, from supporting legislation and initial investigations, to stakeholder engagement and tariff development.”
Volt Lithium Corp. (TSXV: VLT | OTCQB: VLTLF) (“Volt” or the “Company”) is pleased to announce that it has closed its previously announced non-brokered private placement of 6,818,182 units of Volt (“Units”) issued to a strategic investor (the “Investor”) at a price of US$0.22 per Unit for aggregate consideration of US$1,500,000 (the “Strategic Investment”) effective May 1, 2024. Each Unit consisted of one common share in the capital of the Company (each, a “Common Share”) and one-half of one Common Share purchase warrant (each whole warrant, a “Warrant”), with each Warrant exercisable into one Common Share (a “Warrant Share”) at a price of US$0.35 per Warrant Share until May 1, 2026. The securities issued under the Strategic Investment are subject to a hold period equal to four months and a day from the date of closing of the Strategic Investment, which expires on September 2, 2026.
The proceeds of the Strategic Investment will be used by Volt for the deployment of a field unit in the Delaware Basin in West Texas, USA and for other general corporate purposes. This field unit will produce lithium hydroxide monohydrate using Volt’s proprietary direct lithium extraction technology, building on the work done to date by Volt at the Company’s permanent demonstration plant in Calgary, Alberta (the “Demonstration Plant”).
The securities referred to herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”), or any U.S. state securities laws and may not be offered or sold in the United States absent registration or an available exemption from the registration requirement of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful.
UGE International Ltd. (TSXV: UGE) (OTCQB: UGEIF) (the "Company" or "UGE"), a leader in commercial and community solar, announces that it has signed a national service agreement with MaxSolar, a nation-wide renewable energy project operations & maintenance provider.
UGE, which had a decade of experience providing EPC (engineering, procurement, and construction) services, transformed into a full-lifecycle developer and IPP (independent power producer) starting in 2020. Since commencing the transition, UGE has built an operating portfolio of 12 projects totaling 6.6MW, with an additional nine projects totaling 18.6MW under construction. Inclusive of its projects under construction, UGE's portfolio spans six states. The Company now has roughly 1GW of projects with site control in its development pipeline, with plans to scale its operating portfolio significantly in the coming years.
As UGE's operating portfolio has begun to grow, with an expectation of 5X growth in 2024 alone, UGE recognized a need to enhance its portfolio operations and maintenance (O&M) strategy to ensure the optimal performance of all projects.
After a rigorous selection process, UGE has chosen MaxSolar to provide nationwide O&M services for its portfolio. MaxSolar will support UGE to ensure the long-term ROI of its renewable energy assets by providing preventative and corrective maintenance, system monitoring, emergency response services, and array cleaning.
MaxSolar has grown to become a leading national provider of Operations & Maintenance, Asset Management and Technical Services for commercial and community solar asset owners across the United States. The company currently operates and maintains a portfolio of projects encompassing over 550 assets and 450 MW of capacity, across 20 states and the District of Columbia. MaxSolar programs ensure that asset owners receive the maximum energy, environmental, and financial benefits from their renewable energy assets.
Looking ahead, MaxSolar expects continued growth in the coming years and is excited to expand its portfolio with additional assets across the U.S.
"The MaxSolar team is excited to be expanding our partnership with UGE," said Peyton Boswell, Managing Director of MaxSolar, "and we welcome the opportunity to support UGE's aggressive growth plans in the distributed solar & storage marketplace."
"We look forward to a long and productive partnership with MaxSolar as we bring a growing number of projects to the communities we serve," said Nick Blitterswyk, UGE's Founder and CEO.
The United States is slow to anger, but relentlessly seeks victory once it enters a struggle, throwing all its resources into the conflict. “When we go to war, we should have a purpose that our people understand and support,” as former Secretary ....
Unleashing trillions of dollars for a resilient energy future is within our grasp — if we can successfully navigate investment risk and project uncertainties.
The money is there — so where are the projects?
A cleaner and more secure energy future will depend on tapping trillions of dollars of capital. The need to mobilize money and markets to enable the energy transition was one of the key findings of one of the largest studies ever conducted among the global energy sector C-suite. This will mean finding ways to reduce the barriers and uncertainties that prevent money from flowing into the projects and technologies that will transform the energy system. It will also mean fostering greater collaboration and alignment among key players in the energy space.
Interestingly, the study found that insufficient access to finance was notconsidered the primary cause of the current global energy crisis. In fact, capital was seen to be available — but not being unlocked. Why is that? The answer lies in the differing risk profiles of energy transition investments around the world. These risks manifest in multiple ways, including uncertainties relating to project planning, public education, stakeholder engagement, permitting, approvals, policy at national and local levels, funding and incentives, technology availability, and supply chains.
These risks need to be addressed to create more appealing investment opportunities for both public and private sector funders. This will require smart policy and regulatory frameworks that drive returns from long-term investment into energy infrastructure. It will also require investors to recognize that resilient energy infrastructure is more than an ESG play — it is a smart investment in the context of doing business in the 21st century.
Make de-risking investment profiles a number one priority
According to the study, 80 percent of respondents believe the lack of capital being deployed to accelerate the transition is the primary barrier to building the infrastructure required to improve energy security. At the same time, investors are looking for opportunities to invest in infrastructure that meets ESG and sustainability criteria. This suggests an imbalance between the supply and demand of capital for energy transition projects.
How can we close the gap?
One way is to link investors directly to energy companies. Not only would this enable true collaboration and non-traditional partnerships, but it would change the way project financing is conceived and structured — ultimately aiding in potentially satisfying the risk appetite of latent but hugely influential investors, such as pension funds. The current mismatch of investor appetite and investable projects reveals a need for improving risk profiles, as well as a mindset shift towards how we bring investment and developer stakeholders together for mutual benefit. The circular dilemma remains: one sector is looking for capital to undertake projects within their skill to deploy, while another sector wonders where the investable projects are.
This conflict is being played out around the world; promising project announcements are made, only to be followed by slow progress (or no action at all). This inertia results when risks are compounded and poorly understood. To encourage collaboration between project developers and investors with an ESG focus, more attractive investment opportunities can be created by pulling several levers: public and private investment strategies, green bonds and other sustainable finance instruments, and innovative financing models such as impact investing.
Expedite permitting to speed the adoption of new technologies
Another effective strategy to de-risk investment profiles is found in leveraging new technologies and approaches that reduce costs, increase efficiency, and enhance the reliability of energy supply. Research shows that 62 percent of respondents indicated a moderate or significant increase in investment in new and transitional technologies respectively, highlighting the growing interest in innovative solutions to drive the energy transition forward.
Hydrogen, carbon capture and storage, large-scale energy storage, and smart grids are some of the emerging technologies identified by survey respondents as having the greatest potential to transform the energy system and create new investment opportunities. However, these technologies face challenges such as long lag times between conception and implementation.
If the regulatory environment makes sense, then policy uncertainty is reduced, and the all-important permitting pathways are well understood and can be navigated. Currently, the lack of clear, timely, and fit-for-purpose permitting is a major roadblock to the energy transition. To truly unleash the potential of transitional technologies requires the acceleration of regulatory systems that better respond to the nuance and complexity of such technologies (rather than the current one-size-fits all approach). In addition, permitting processes must also be expedited to dramatically decrease the period between innovation, commercialization, and implementation. One of the key elements of faster permitting is effective consultation with stakeholders and engagement with communities where these projects will be housed for decades. This is a highly complex area that requires both technical and communication skills.
The power of collaboration, consistency, and systems thinking
The report also reveals the need for greater collaboration among companies in the energy space to build a more resilient system. The report shows that, in achieving net zero, there is a near-equal split between those increasing investment (47 percent of respondents), and those decreasing investment (39 percent of respondents). This illustrates the complexity and diversity of the system around the world. A more resilient system will require all its components – goals and actions – to be aligned towards a common outcome.
Another way to de-risk the energy transition is to establish consistent, transparent, and supportive policy frameworks that encourage investment and drive technological innovation. The energy transition depends on policy to guide its direction and speed by affecting how investors feel and how the markets behave. However, inconsistent or inadequate policy can also be a source of uncertainty and instability. For example, shifting political priorities, conflicting international standards, and the lack of market-based mechanisms can hinder the deployment of sustainable technologies, resulting in a reluctance to commit resources to long-term projects.
Variations in country-to-country deployment creates disparities in energy transition progress. For instance, the 2022Inflation Reduction Act in the US has posed challenges for the rest of the world, by potentially channeling energy transition investment away from other markets and into the US. This highlights the need for a globally unified approach to energy policy that balances various national interests while addressing a global problem.
To facilitate the energy transition, it is imperative to establish stable, cohesive, and forward-looking policies that align with global goals and standards. By harmonizing international standards, and providing clear and consistent signals, governments and policymakers can generate investor confidence, helping to foster a robust energy ecosystem that propels the sector forward.
Furthermore, substantive and far-reaching discussions at international events like the United Nations Conference of the Parties (COP), are essential to facilitate this global alignment. These events provide an opportunity to de-risk the energy transition through consistent policy that enables countries to work together, ensuring that the global community can tackle the challenges and opportunities of the energy transition as a united front.
Keeping net-zero ambitions on track
Despite the challenges faced by the energy sector, the latest research reveals a key positive: 91 percent of energy leaders surveyed are working towards achieving net zero. This demonstrates a strong commitment to the transition and clear recognition of its importance. It also emphasizes the need to accelerate our efforts, streamline processes, and reduce barriers to realizing net-zero ambitions — and further underscores the need to de-risk energy transition investment by removing uncertainties.
The solution is collaborating and harmonizing our goals with the main players in the energy sector across the private and public sectors, while establishing consistent, transparent, and supportive policy frameworks that encourage investment and drive technological innovation.
These tasks, while daunting, are achievable. They require vision, leadership, and action from all stakeholders involved. By adopting a new mindset about how we participate in the energy system and what our obligations are, we can stimulate the rapid progress needed on the road to net zero.
Dr. Tej Gidda (Ph.D., M.Sc., BSc Eng) is an educator and engineer with over 20 years of experience in the energy and environmental fields. As GHD Global Leader – Future Energy, Tej is passionate about moving society along the path towards a future of secure, reliable, and affordable low-carbon energy. His focus is on helping public and private sector clients set and deliver on decarbonization goals in order to achieve long-lasting positive change for customers, communities, and the climate. Tej enjoys fostering the next generation of clean energy champions as an Adjunct Professor at the University of Waterloo Department of Civil and Environmental Engineering.
The Kincardine floating wind farm, located off the east coast of Scotland, was a landmark development: the first commercial-scale project of its kind in the UK sector. Therefore, it has been closely watched by the industry throughout its installation. With two of the turbines now having gone through heavy maintenance, it has also provided valuable lessons into the O&M processes of floating wind projects.
In late May, the second floating wind turbine from the five-turbine development arrived in the port of Massvlakte, Rotterdam, for maintenance. An Anchor Handling Tug Supply (AHTS)
vessel was used to deliver the KIN-02 turbine two weeks after a Platform Supply Vessel (PSV) and AHTS had worked to disconnect the turbine from the wind farm site. The towing vessel became the third vessel used in the operation.
This is not the first turbine disconnected from the site and towed for maintenance. In the summer of 2022, KIN-03 became the world’s first-ever floating wind turbine that required heavy maintenance (i.e. being disconnected and towed for repair). It was also towed from Scotland to Massvlakte.
Each of these operations has provided valuable lessons for the ever-watchful industry in how to navigate the complexities of heavy maintenance in floating wind as the market segment grows.
The heavy maintenance process
When one of Kincardine’s five floating 9.5 MW turbines (KIN-03) suffered a technical failure in May 2022, a major technical component needed to be replaced. The heavy maintenance strategy selected by the developer and the offshore contractors consisted in disconnecting and towing the turbine and its floater to Rotterdam for maintenance, followed by a return tow and re-connection. All of the infrastructure, such as crane and tower access, remained at the quay following the construction phase. (Note, the following analysis only covers KIN-03, as details of the second turbine operation are not yet available).
Comparing the net vessel days for both the maintenance and the installation campaigns at this project highlights how using a dedicated marine spread can positively impact operations.
For this first-ever operation, a total of 17.2 net vessel days were required during turbine reconnection—only a slight increase on the 14.6 net vessel days that were required for the first hook-up operation performed during the initial installation in 2021. However, it exceeds the average of eight net vessel days during installation. The marine spread used in the heavy maintenance operation differed from that used during installation. Due to this, it did not benefit from the learning curve and experience gained throughout the initial installation, which ultimately led to the lower average vessel days.
The array cable re-connection operation encountered a similar effect. The process was performed by one AHTS that spent 10 net vessel days on the operation. This compares to the installation campaign, where the array cable second-end pull-in lasted a maximum of 23.7 hours using a cable layer.
Overall, the turbine shutdown duration can be broken up as 14 days at the quay for maintenance, 52 days from turbine disconnection to turbine reconnection, and 94 days from disconnection to the end of post-reconnection activities.
What developers should keep in mind for heavy maintenance operations
This analysis has uncovered two main lessons developers should consider when planning a floating wind project: the need to identify an appropriate O&M port, and to guarantee that a secure fleet is available.
Identification of the O&M port
Floating wind O&M operations require a port with both sufficient room and a deep-water quay. The port must also be equipped with a heavy crane with sufficient tip height to accommodate large floaters and reach turbine elevation. Distance to the wind farm should also be taken into account, as shorter distances will reduce towing time and, therefore, minimize transit and non-productive turbine time.
During the heavy maintenance period for KIN-03 and KIN-02, the selected quay (which had also been utilized in the initial installation phase of the wind farm project), was already busy as a marshalling area for other North Sea projects. This complicated the schedule significantly, as the availability of the quay and its facilities had to be navigated alongside these other projects. This highlights the importance of abundant quay availability both for installation (long-term planning) and maintenance that may be needed on short notice.
A secure fleet
At the time of the first turbine’s maintenance program (June 2022), the North Sea AHTS market was in an exceptional situation: the largest bollard pull AHTS units contracted at over $200,000 a day, the highest rate in over a decade.
During this time, the spot market was close to selling out due to medium-term commitments, alongside the demand for high bollard pull vessels for the installation phase at a Norwegian floating wind farm project. The Norwegian project required the use of four AHTS above a 200t bollard pull. With spot rates ranging from $63,000 to $210,000 for the vessels contracted for Kincardine’s maintenance, the total cost of the marine spread used in the first repair campaign was more than $4 million.
Developers should therefore consider the need to structure maintenance contracts with AHTS companies, either through frame agreements or long-term charters, to decrease their exposure to spot market day rates as the market tightens in the future.
While these lessons are relevant for floating wind developers now, new players are looking towards alternative heavy O&M maintenance options for the future. Two crane concepts are especially relevant in this instance. The first method is for a crane to be included in the turbine nacelle to be able to directly lift the component which requires repair from the floater, as is currently seen on onshore turbines. This method is already employed in onshore turbines and could be applicable for offshore. The second method is self-elevating cranes with several such solutions already in development.
The heavy maintenance operations conducted on floating turbines at the Kincardine wind farm have provided invaluable insights for industry players, especially developers. The complex process of disconnecting and towing turbines for repairs highlights the need for meticulous planning and exploration of alternative maintenance strategies, some of which are already in the pipeline. As the industry evolves, careful consideration of ports, and securing fleet contracts, will be crucial in driving efficient and cost-effective O&M practices for the floating wind market.
Sarah McLean is Market Research Analyst at Spinergie, a maritime technology company specializing in emission, vessel performance, and operation optimization.
A large percentage of new installations are being developed in areas that are prone to extreme weather events and natural disasters (e.g., Texas and California), including high wind, tornadoes, hail, flooding, earthquakes, wildfires, etc. With the frequency and severity of many of these events increasing, project developers, asset owners, and tax equity partners are under growing pressure to better understand and mitigate risk.
Figure 1. The history of billion-dollar disasters in the United States each year from 1980 to 2022 (source: NOAA)
In terms of loss prevention, a Catastrophe (CAT) Modeling Study is the first step to understanding the exposure and potential financial loss from natural hazards or extreme weather events. CAT studies form the foundation for wider risk management strategies, and have significant implications for insurance costs and coverage.
Despite their importance, developers often view these studies as little more than a formality required for project financing. As a result, they are often conducted late in the development cycle, typically after a site has been selected. However, a strong case can be made for engaging early with an independent third party to perform a more rigorous site-specific technical assessment. Doing so can provide several advantages over traditional assessments conducted by insurance brokerage affiliates, who may not possess the specialty expertise or technical understanding needed to properly apply models or interpret the results they generate. One notable advantage of early-stage catastrophe studies is to help ensure that the range of insurance costs, which can vary from year to year with market forces, are adequately incorporated into the project financial projections.
Investors, insurers, and financiers of renewable projects have taken notice of this trend, and are subsequently adapting their behavior and standards accordingly. In the solar market, for example, insurance premiums increased roughly four-fold from 2019 to 2021. The impetus for this increase can largely be traced back to a severe storm in Texas in 2019, which resulted in an $80 million loss on 13,000 solar panels that were damaged by hail.
The event awakened the industry to the hazards severe storms present, particularly when it comes to large-scale solar arrays. Since then, the impact of convective weather on existing and planned installations has been more thoroughly evaluated during the underwriting process. However, far less attention has been given to the potential for other natural disasters; events like floods and earthquakes have not yet resulted in large losses and/or claims on renewable projects (including wind farms). The extraordinary and widespread effect of the recent Canadian wildfires may alter this behavior moving forward.
A thorough assessment, starting with a CAT study, is key to quantifying the probability of their occurrence — and estimating potential losses — so that appropriate measures can be taken to mitigate risk.
All models are not created equal
Industrywide, certain misconceptions persist around the use of CAT models to estimate losses from an extreme weather event or natural disaster.
Often, the perception is that risk assessors only need a handful of model inputs to arrive at an accurate figure, with the geographic location being the most important variable. While it’s true that many practitioners running models will pre-specify certain project characteristics regardless of the asset’s design (for example, the use of steel moment frames without trackers for all solar arrays in a given region or state), failure to account for even minor details can lead to loss estimates that are off by multiple orders of magnitude.
The evaluation process has recently become even more complex with the addition of battery energy storage. Relative to standalone solar and wind farms, very little real-world experience and data on the impact of extreme weather events has been accrued on these large-scale storage installations. Such projects require an even greater level of granularity to help ensure that all risks are identified and addressed.
Even when the most advanced modeling software tools are used (which allow for thousands of lines of inputs), there is still a great deal that is subject to interpretation. If the practitioner does not possess the expertise or technical ability needed to understand the model, the margin for error can increase substantially. Ultimately, this can lead to overpaying for insurance. Worse, you may end up with a policy with insufficient coverage. In both cases, the profitability of the asset is impacted.
Supplementing CAT studies
In certain instances, it may be necessary to supplement CAT models with an even more detailed analysis of the individual property, equipment, policies, and procedures. In this way, an unbundled risk assessment can be developed that is tailored to the project. Supplemental information (site-specific wind speed studies and hydrological studies, structural assessment, flood maps, etc.) can be considered to adjust vulnerability models.
This provides an added layer of assurance that goes beyond the pre-defined asset descriptions in the software used by traditional studies or assessments. By leveraging expert elicitations, onsite investigations, and rigorous engineering-based methods, it is possible to discretely evaluate asset-specific components as part of the typical financial loss estimate study: this includes Normal Expected Loss (NEL), also known as Scenario Expected Loss (SEL); Probable Maximum Loss (PML), also known as Scenario Upper Loss (SUL); and Probabilistic Loss (PL).
Understanding the specific vulnerabilities and consequences can afford project stakeholders unique insights into quantifying and prioritizing risks, as well as identifying proper mitigation recommendations.
Every project is unique
The increasing frequency and severity of natural disasters and extreme weather events globally is placing an added burden on the renewable industry, especially when it comes to project risk assessment and mitigation. Insurers have signaled that insurance may no longer be the main basis for transferring risk; traditional risk management, as well as site and technology selection, must be considered by developers, purchasers, and financiers.
As one of the first steps in understanding exposure and the potential capital loss from a given event, CAT studies are becoming an increasingly important piece of the risk management puzzle. Developers should treat them as such by engaging early in the project lifecycle with an independent third-party practitioner with the specialty knowledge, tools, and expertise to properly interpret models and quantify risk.
Hazards and potential losses can vary significantly depending on the project design and the specific location. Every asset should be evaluated rigorously and thoroughly to minimize the margin for error, and maximize profitability over its life.
Chris LeBoeuf is Global Head of the Extreme Loads and Structural Risk division of ABS Group, based in San Antonio, Texas. He leads a team of more than 60 engineers and scientists in the US, UK, and Singapore, specializing in management of risks to structures and equipment related to extreme loading events, including wind, flood, seismic and blast. Chris has more than 20 years of professional experience as an engineering consultant, and is a recognized expert in the study of blast effects and blast analysis, as well as design of buildings. He holds a Bachelor of Science in Civil Engineering from The University of Texas at San Antonio, and is a registered Professional Engineer in 12 states.
Throughout my life and career as a real estate developer in New York City, I’ve had many successes. In what is clearly one of my most unusual development projects in a long career filled with them, I initiated the building of a solar farm to help t....
I’m just going to say it, BIPV is dumb.
Hear me out….
Solar is the most affordable form of energy that has ever existed on the planet, but only because the industry has been working towards it for the past 15 years. Governments,....
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Wind turbines play a pivotal role in the global transition to sustainable energy sources. However, the harsh environmental conditions in which wind turbines operate, such as extreme temperatures, high humidity, and exposure to various contaminants, p....
Wind energy remains the leading non-hydro renewable technology, and one of the fastest-growing of all power generation technologies. The key to making wind even more competitive is maximizing energy production and efficiently maintaining the assets. ....
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Not enough people know that hydrogen fuel cells are a zero-emission energy technology. Even fewer know water vapor's outsized role in electrochemical processes and reactions.
Producing electricity through a clean electrochemical process with water....
In the ever-evolving landscape of sustainable transportation, a ground-breaking shift is here: 2024 ushers in a revolutionary change in Electric Vehicle (EV) tax credits in the United States. Under the Inflation Reduction Act (IRA), a transforma....
Now more than ever, it would be difficult to overstate the importance of the renewable energy industry. Indeed, it seems that few other industries depend as heavily on constant and rapid innovation. This industry, however, is somewhat unique in its e....
University of Toronto’s latest student residence welcomes the future of living with spaces that are warmed by laptops and shower water.
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For decades, demand response (DR) has proven a tried-and-true conservation tactic to mitigate energy usage during peak demand hours. Historically, those peak demand hours were relatively predictable, with increases in demand paralleling commuter and ....
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Monika Krämer, windtest grevenbroich managing director and windtest north-america president, said the company considered multiple locations on the East and West Coasts, but Estherville stood out.
Interestingly, the study found that insufficient access to finance was not considered the primary cause of the current global energy crisis. In fact, capital was seen to be available — but not being unlocked. Why is that? The answer lies in the differing risk profiles of energy transition investments around the world. These risks manifest in multiple ways, including uncertainties relating to project planning, public education, stakeholder engagement, permitting, approvals, policy at national and local levels, funding and incentives, technology availability, and supply chains.
Chris LeBoeuf is Global Head of the Extreme Loads and Structural Risk division of ABS Group, based in San Antonio, Texas. He leads a team of more than 60 engineers and scientists in the US, UK, and Singapore, specializing in management of risks to structures and equipment related to extreme loading events, including wind, flood, seismic and blast. Chris has more than 20 years of professional experience as an engineering consultant, and is a recognized expert in the study of blast effects and blast analysis, as well as design of buildings. He holds a Bachelor of Science in Civil Engineering from The University of Texas at San Antonio, and is a registered Professional Engineer in 12 states.
