Block ip Trap
Apr 24, 2024
SolaTrue Merges with Southern Solar: Pioneering Brands Unite to Lead the Solar Industry Forward

SolaTrue, a leading national solar brand, proudly announces its merger with Southern Solar. This strategic merger represents a transformative step forward in the journey toward a future powered by sustainable innovation. "Through the merger of SolaTrue and Southern Solar, we’ve embarked on a future powered by sustainable innovation," said Shane Lynch, President of SolaTrue. "This merger reinforces our commitment to delivering cutting-edge solar solutions while staying true to the values of transparency and honesty we hold at SolaTrue. Together, we are not just shaping an industry; we are pioneering a path where integrity meets innovation, setting new standards for a brighter, more sustainable tomorrow."

Effective Jan. 1, 2024, SolaTrue merged with Southern Solar, consolidating operations under the SolaTrue name. This strategic decision signifies an advancement in its dedication to sustainable energy solutions and strengthening its position in the renewable energy sector.

"At SolaTrue, we believe in the power of solar energy to transform the way we generate and consume power," commented Shane. "This merger brings together the expertise and resources of Southern Solar and SolaTrue, creating a force in the renewable energy industry. Our shared vision is to contribute to a greener and more sustainable future by harnessing the potential of solar power."

SolaTrue is poised to emerge as a leader in the renewable energy landscape, equipped with the combined strengths of both organizations. Together, we will continue to explore new technologies, expand our reach, and play a pivotal role in shaping a cleaner and more sustainable energy future.

SolaTrue | https://www.solatrue.com/

Apr 24, 2024
Stryten Energy Awarded Department of Defense Funding for Lithium-Ion Battery Prototype

Stryten Energy LLC, a U.S.-based energy storage solutions provider, has received a contract award from the Defense Innovation Unit’s (DIU) FAStBat project to develop and evaluate a prototype 6T lithium-ion battery and potentially extend the technology to other cross-service platforms. Stryten Energy has proven expertise in designing, manufacturing and deploying lithium-ion technology to the commercial, industrial and military markets, which is strategically vital to the domestic battery manufacturing base.

The DIU’s Family of Advanced Standard Batteries (FAStBat) program seeks to address the supply chain, cost, and life cycle challenges that are barriers to the widespread adoption of lithium-ion technology in the Department of Defense. The program seeks to support the domestic growth of manufacturing capacity to underpin the United States defense industrial base.

“Stryten Energy is developing domestically owned, cutting-edge technology to improve ground vehicle reliability and efficiency,” said Scott Childers, Vice President of Essential Power at Stryten Energy. “Through this contract award, we will strengthen U.S. supply chains and provide reliable energy storage technology for the warfighter.”

Stryten Energy will launch a new lithium battery assembly plant in the Metro Atlanta area later this year to support the production of lithium batteries for military and commercial applications.

Stryten Energy | www.stryten.com

Apr 24, 2024
ICYMI: Secretary Haaland Announces New Five-Year Offshore Wind Leasing Schedule

In remarks at the International Partnering Forum conference in New Orleans, Louisiana, Secretary of the Interior Deb Haaland announced a new five-year offshore wind leasing schedule, which includes up to 12 potential offshore wind energy lease sales through 2028. Future offshore wind energy lease sales from the Bureau of Ocean Energy Management (BOEM) are anticipated in the Atlantic, Gulf of Mexico, Pacific, and the waters offshore of the U.S. territories in the next five years. The leasing schedule includes four potential offshore lease sales in 2024, one each in 2025 and 2026, two in 2027, and four in 2028. More information can be found on BOEM's website.

Bureau of Ocean Energy Management | www.boem.gov

 

Apr 24, 2024
C-FER Technologies Working with Taiwan R&D Centre to Ensure Hydrogen Pipeline Safety

C-FER Technologies has signed a memorandum of understanding (MOU) with Metal Industries Research and Development Center (MIRDC) in Taiwan to work together to advance technologies and expertise related to pipeline material performance and integrity, with a focus on pipelines transporting hydrogen.

C-FER is excited to be working with MIRDC. Both organizations have a corporate vision to contribute to the advancement of the global metal and energy industries. Brian Wagg, Director of Business Development and Strategic Planning for C-FER says, “We see a great benefit to our two companies and our clients by sharing our expertise in metallurgy and equipment performance for pipelines transporting hydrogen.”

The collaboration opportunities enabled by the MOU are expected to include:

  • Training to research staff and industry and government stakeholders on hydrogen related challenges;
  • Testing and analytical services to industry clients using C-FER’s new testing systems established with support of the Alberta Hydrogen Centre of Excellence and Prairies Economic Development Canada;
  • Assistance in the development of local standards and regulations; and
  • Support for technical conferences to share the new knowledge with local industry and government stakeholders.

For hydrogen to be successfully adopted in a reasonable time frame, existing infrastructure such as natural gas pipelines and underground storage will have to be repurposed. This agreement focuses on adapting traditional pipeline management approaches to the transportation of hydrogen in Taiwan’s existing infrastructure.

Bringing Alberta-based Expertise to the World
This agreement will enable projects that will use Alberta and Canadian engineering, testing and analysis expertise to address challenges in Taiwan and will increase the exposure of Alberta supply chain companies in the Asian marketplace.

Complementary Areas of Expertise
C-FER and MIRDC’s complimentary areas of expertise will facilitate the sharing of knowledge and technologies from each organization and create opportunities for further technology advancement.

MIRDC’s focus is on improving metal performance and metal forming technologies over a broad range of applications from energy transportation and storage to medical devices.

C-FER’s reputation as experts in evaluating equipment performance, managing safety, and maintaining the integrity of natural gas pipeline systems, positions us to play a key role in ensuring the safe, reliable transportation and storage of hydrogen.

C-FER’s expertise includes:

  • Validating the structural performance of equipment using full-scale tests in simulated operating environments including hydrogen, hydrogen sulfide and other severe environments
  • Performing quantitative risk assessments of pipeline systems including underground storage facilities. This includes evaluating a broad range of threats to pipeline reliability and modeling the consequences of releases.
  • Developing advanced pipeline design methods that employ techniques such as reliability-based and strain-based design
  • Helping industry and regulators to revise codes and standards to incorporate new analysis and engineering techniques to account for changes in operating conditions and products such as hydrogen and carbon dioxide

C-FER Technologies is working with industry to evaluate, de-risk and implement technologies that enable the widespread use of hydrogen. C-FER is helping industry develop new standards for hydrogen-ready equipment and update industry codes and standards to ensure the safe transition to hydrogen. C-FER’s engineering consulting services and testing facilities can recreate real-world conditions at full-scale. We are helping industry in the areas of safe CO2 and hydrogen transportation, design and construction of hydrogen storage wells, and managing risk, reliability, integrity management and maintenance of equipment. In addition, C-FER assembles Joint Industry Projects that leverage resources, experience and data from industry and government agencies to develop comprehensive solutions that impact the entire industry.

C-FER Technologies | https://www.cfertech.com/

Alberta Innovates | https://albertainnovates.ca/

 

Apr 24, 2024
ALCEA and LRG Inc. Announce Security Partnership

ALCEA, the brand formerly known as ASSA ABLOY Global Solutions - Critical Infrastructure, has announced an agreement with Houston-based LRG Inc., an independent regional manufacturer’s representative company serving the electronic security and access control industry. 

As the internal systems integrator partner across the ASSA ABLOY ecosystem, ALCEA offers a comprehensive assortment of security solutions and access management systems. Ranging from security hardware, locks, and devices, to key management and access control systems, these solutions can be customized, digitalized and integrated to enhance security and operational efficiency.

“LRG Inc. will be a key partner to bring our vision of ensuring that life goes on and customers’ operations are kept uninterrupted,” said Jerry Burhans, managing director of ALCEA. “We know that leveraging a professional selling force like John Swinford’s team at LRG can accelerate our growth and will have an enormous impact on our brand development.”   

Veteran owned and operated, LRG was founded in 2001 and specializes in access control, intrusion, surveillance, audio/video, and IP solutions from industry leading manufacturers for the central United States. Services include pre-sales assistance, technical training, and project registration support.

“This partnership is a natural fit that leverages each of our respective strengths, and expands ALCEA’s ability to serve a broader customer base,” states John Swinford, CEO of LRG Inc. “Our mission is to expand their market share beyond what their exceptional team has already accomplished throughout the U.S.”

Swinford points outs that ALCEA’s solutions portfolio also fills a gap in LRG’s current access management product portfolio.

“What is really unique about ALCEA is they are offering critical infrastructure customers compliance at the edge. Utilities, telecom, oil and gas firms, they all struggle with key management, audit trails, and controlling physical access at remote sites across wide geographies. We are excited to show customers that ALCEA is really the only company whose edge locking devices can interface with your access control systems, so that you have a seamless top to bottom security solution. And you can achieve compliance with the latest critical infrastructure protection standards.”

ALCEA | https://www.alceaglobal.com/en

Apr 24, 2024
Energy Policy Design Institute Team to Help Maryland Reach Ambitious Energy Storage Goal

Co-founders of the Energy Policy Design Institute (EPDI), which supports decision-makers with tools for better, faster policymaking, announced they will provide the Maryland Public Service Commission (Maryland PSC) with critical policy design and stakeholder facilitation services in support of the state’s first-ever energy storage goal. The contract with a small business reserve company follows a successful pilot of EPDI’s expedited policy development model, which helped stakeholders and policy staff in the Maryland Energy Storage Program (MESP) achieve crucial milestones under tight time pressure. 

In May 2023, Maryland became the 10th U.S. state to establish an energy storage target, with legislation requiring 3 gigawatts (GW) of storage within a decade. Between October and December, EPDI worked intensively with the MESP workgroup leader and diverse stakeholder participants to address critical program design questions, build broad consensus, and file an essential interim report. 

“The EPDI team’s expertise and facilitation have quickened the process of addressing Maryland's key policy design questions needed to achieve our MESP goals,” said John Borkoski, MESP workgroup leader for the Maryland PSC.

“Maryland’s energy storage target is excellent news for its clean energy economy, but responding to new targets is often very demanding,” said Ted Ko, EPDI Co-Founder and Executive Director. “Helping states respond quickly and effectively to new policy priorities is our core competency at EPDI, and we are thrilled to continue working with the Maryland PSC after the success we achieved together last year.”

EPDI guided the workgroup to establish a shared objective and then identify and prioritize the key policy design questions that must be addressed to achieve it. The workgroup’s interim report, written primarily by EPDI, reflects input from over 50 stakeholders across industry, utilities, ratepayer advocates, and community and environmental justice groups, and provides a strong foundation for the workgroup’s ongoing efforts to design Maryland’s energy storage program.

“EPDI’s expert facilitation has been instrumental in helping Maryland stakeholders work together efficiently,” said Greg Geller, CEO of Stack Energy Consulting and MESP workgroup participant. “EPDI’s approach has allowed us to capitalize on lessons learned in other states and focus the group’s attention on critical design questions that can help Maryland maximize its investment in energy storage.”

“Well-designed state policies and programs are crucial for deploying clean technologies at scale,” said Tyler Wakefield, EPDI Co-Founder and Associate Executive Director. “EPDI’s work helps state agencies develop large, complex policies on short timeframes and maintain progress toward climate goals.”

Energy Policy Design Institute | epdiusa.org

Apr 24, 2024
9 Minnesota Cities Earn Nation’s First “EV-Ready” Designation from DOE-Funded Charging Smart Program

On Wednesday, April 17, a group of Minnesota local governments became the first communities to achieve Charging Smart designation, a public recognition of their status as electric vehicle-friendly communities. Charging Smart is a national program funded by the U.S. Department of Energy that works to accelerate the deployment of electric vehicles (EVs) across the country. Nine local governments from across Minnesota—from rural communities to metropolitan Minneapolis—earned Bronze and Silver designations in recognition of their work to accelerate the equitable expansion of EVs and EV charging infrastructure. 

“We are so proud that Minnesota cities are the first in the nation to earn this much-deserved recognition. We worked closely with the Interstate Renewable Energy Council (IREC) to develop Charging Smart, and designation through the program means a community has taken critically important steps to accelerate EV readiness,” said Lola Schoenrich, Vice President, Communities at the Great Plains Institute (GPI).

On Wednesday, two communities—Hopkins and La Crescent, Minnesota—received Charging Smart Silver designations. An additional seven communities received Charging Smart Bronze designation: Eden Prairie, Falcon Heights, Faribault, Inver Grove Heights, Oakdale, Roseville, and St. James, Minnesota.

Charging Smart offers free technical assistance to help municipalities set and achieve policies that align with nationally recognized best practices to advance EV adoption. By helping local governments streamline and improve their policies, Charging Smart aims to reduce EV charger costs and increase the number of EVs in the community. In addition, the program emphasizes the importance of equity, leading to concrete benefits in EV access for all jurisdiction residents. Learn more and join the program at ChargingSmart.org

The program launched earlier this year in a pilot phase. It currently operates in Colorado, Minnesota, Michigan, Ohio, and Virginia, along with the regions of North Texas, Northern Illinois, and Southern California. Charging Smart plans to expand the program’s geographic reach beginning this summer. 

Charging Smart is led by IREC, with GPI serving as lead partner on the project. GPI worked closely with the seven Minnesota communities to earn designation on Wednesday. 

“We are thrilled to welcome our first group of Charging Smart designees just a few months after the program’s launch,” said Ed Gilliland, Senior Director, Strategic Initiatives at IREC. “This group of communities demonstrates both the significant impact that local governments can have on EV adoption, and underscores the potential of this program as we prepare to expand it nationally.” 

Full details on the Charging Smart program, along with information on how eligible communities can participate, are available at ChargingSmart.org.

Interstate Renewable Energy Council | www.irecusa.org 

Great Plains Institute | www.betterenergy.org

Alternative Energies May 15, 2023

Mobilizing to Win

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 ....

Alternative Energies Jun 26, 2023
8 min read
Investing in the Future: Mobilizing capital and partnerships for a sustainable energy transition

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.

stocksInterestingly, 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.

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.

sunset

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.

electric little car

Variations in country-to-country deployment creates disparities in energy transition progress. For instance, the 2022 Inflation 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.

GHD | www.ghd.com

Dr. Tej Gidda

Wind Sep 15, 2023
6 min read
Lessons Learned: The first case of heavy maintenance on floating wind

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. 

floating yellow

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. 

offshore

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.

yellow and blue

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.

Spinergie | www.spinergie.com

Sarah Mclean

Alternative Energies Jul 15, 2023
7 min read
Choosing the Right Partner Mitigates Project Risk

According to the Energy Information Administration (EIA), developers plan to add 54.5 gigawatts (GW) of new utility-scale electric generating capacity to the U.S. power grid in 2023. More than half of this capacity will be solar. Wind power and battery storage are expected to account for roughly 11 percent and 17 percent, respectively.

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.

chart

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. 

The evolving threat of natural disasters

Over the past decade, the financial impact of natural hazard events globally has been almost three trillion dollars. In the U.S. alone, the 10-year average annual cost of natural disaster events exceeding $1 billion increased more than fourfold between the 1980s ($18.4 billion) and the 2010s ($84.5 billion).

forest fire

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. 

submerged cars

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 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.

ABS Group | www.abs-group.com

 

 

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