Since 2021, Soligent and Sungage have made it easy for installers nationwide to provide flexible financing and reliable equipment to homeowners looking to go solar through their Direct Pay partnership.
Soligent and Sungage are teaming up to launch PowerUp, an enhanced Direct Pay program that will be unveiled at SolarCon, a North American solar networking conference hosted in Salt Lake City, Utah. This program will provide additional volume-based discounts on solar system hardware and financing to solar installation companies enrolled in Direct Pay.
With PowerUp, partners can ease equipment capital burdens while unlocking thousands of dollars in potential savings on both financing fees and equipment. At the same time, they can help more homeowners realize the benefits of going solar by offering the lowest possible monthly payments paired with trusted solar equipment.
“We know margins are tight for our partners given the recent fluctuation in financing rates and escalating business expenses,” said Michael Gilroy, CEO of Sungage Financial. “We are constantly looking for ways to help our partners save money and streamline their business operations, which is why we’re excited to launch PowerUp.”
"We are thrilled to expand our collaboration with Sungage Financial through the PowerUp program. This initiative marks a significant advancement in our commitment to empowering solar installation companies with more robust tools and opportunities. By enhancing our Direct Pay program, we are not only able to offer substantial savings but also facilitate a smoother, more efficient way for homeowners to adopt solar energy," stated Luke Hutchins, Vice-President of Sales and Marketing at Soligent.
How it Works:
Solar installation companies partnered with and approved for both Soligent and Sungage can take advantage of PowerUp. Discounts are based on monthly funding volume and are available to partners funding at least $250,000 a month. Reach out to [email protected] or fill out this form to learn more and get started.
Head to the Sungage blog to learn more about how Direct Pay works and if it’s right for your business.
Soligent Distribution | soligent.net/dealer/
Sungage | https://www.sungage.com/
Mads Kirkegaard will be stepping down as CEO after 12 years of service. Effective July 1, 2024, he will become a Member of the Board of Polytech. Allan JF Kristensen will take over as the new CEO from June 1, 2024.
Mads Kirkegaard, who joined Polytech as R&D Manager in 2007, became the company’s CEO in 2012. Under Kirkegaard’s leadership, Polytech has achieved remarkable milestones including the expansion of solution offerings from two to now six solution areas, establishing production facilities in China and Mexico, increasing market share and global customer base, and gaining significant technological expertise in the past 12 years.
Allan JF Kristensen
“I am proud of what we have achieved at Polytech during my time as CEO,” says Mads Kirkegaard. “We have attracted so much talent and built solid expertise over the years, bringing us forward as the undisputed market leader in our fields. It has been a great journey with ups and downs, but we have successfully navigated through all that. And this would not have been possible without the excellent teams at Polytech, and the outstanding collaboration across the entire organization, our customers, and business partners. It has been an honor to serve as CEO of Polytech, and I am excited to follow Polytech’s future journey as a Member of the Board. I am confident that Allan JF Kristensen will continue to lead the company to even greater success.”
Søren F. Knudsen, Polytech’s Chairman of the Board, comments on the CEO transition. “We are grateful for Mads Kirkegaard’s leadership and contributions to Polytech over the past 12 years and welcome him as a Member of the Polytech Board. Without doubt, Mads Kirkegaard leaves the company in a strong state, ready for further growth. We are therefore pleased that he continues to play a vital role in Polytech as a Member of the Board, and at the same, welcome Allan JF Kristensen as Polytech’s new CEO, who will build on this strong foundation and continue to drive the company forward. We are confident that Allan JF Kristensen will lead Polytech with the same passion, integrity, and ambitions that have defined Polytech under Mads Kirkegaard’s leadership.”
Allan JF Kristensen joins Polytech with over 20 years of executive leadership experience from global, high-tech manufacturing companies. He has most recently been the CEO of the Frontmatec Group, where he led the profitable transformation of the company. Prior to the Frontmatec Group, he held different executive roles at Howden Group.
Allan’s extensive experience includes working internationally within complex project sales, executing large, specialized technical engineering projects, and building up customer-focused organizations in many different industrial segments. His key focus has been to deliver high customer satisfaction, supported by skilled and motivated people. He now joins Polytech and the wind industry with a unique profile and background built on his previous roles, where he has focused on providing holistic solutions for the benefit of customers and whole industries.
Allan JF Kristensen is looking forward to coming on board. “Polytech is a truly unique partner to the wind industry. As a supplier that is solely dedicated to wind, Polytech has an extensive toolbox and expertise that addresses the most pressing challenges in the sector. It is imperative that we continue to advance this expertise, broadening our array of solutions and deepening our knowledge base. I am excited and proud to be taking over the role of CEO and working together with Polytech’s skillful workforce to reach further successes.”
Mads Kirkegaard will work closely with Allan JF Kristensen during the upcoming period to ensure a smooth transition and handover of responsibilities.
Polytech | https://www.polytech.com/
Nexamp celebrated reaching the milestone of 100 MWh of operational energy storage capacity at the end of 2023. This operating portfolio comprises 22 projects across Massachusetts and New York and the milestone comes as Nexamp plans to add even more energy storage to its fleet in 2024 across multiple national markets. The company offers a variety of energy storage project applications ranging from commercial through distributed generation and to utility scale, covering grid services, microgrid, and behind-the-meter projects among other opportunities.
“Energy storage is increasingly important in adding value and resilience to solar energy generation, and with the addition of energy storage, each project is better able to serve the needs of the grid,” notes Mark Frigo, Vice President of Energy Storage, Nexamp. “We are seeing a vast improvement in the performance and efficiency of storage technology and expect this to continue, making it a key component of many of our projects in the future. Storage is certainly critical in making the availability of all forms of renewable energy seamless and reliable.”
“Integrating batteries is the next logical step in renewable energy deployment, but it also adds complexity to an already demanding process,” says Chris Perron, Senior Vice President of Clean Energy Deployment. “Our team has worked hard to develop a series of best practices that make it easier for our internal design, storage, and construction teams to work hand-in-hand throughout the process.”
These first 22 projects cover a range of inverter providers, energy storage systems, and control schemes, which is why Nexamp has invested heavily in its commissioning capabilities to ensure smooth integration and operation going forward. Few companies in the Northeast have reached this operational energy storage milestone.
Nexamp is continuing to develop and implement additional storage resources, both with and without solar. The company has more than 5 GWh of storage under development or in construction across the country.
Nexamp | www.nexamp.com
TeraWatt Technology Inc., a next-generation battery pioneer is pleased to announce the appointment of below four external advisors.
"We are delighted to announce that with the appointment of four external advisors, who bring exceptional experience and achievements to our team, we are poised to accelerate our growth to the next stage," said Dr. Ken Ogata, founder and CEO of TeraWatt Technology.
TeraWatt Technology views external advisors' participation as a very important step to accelerate our growth, leveraging their experiences and deep expertise to facilitate further product/business development to realize our mission, "Electrifying All for the Sustainable Future".
TeraWatt Technology I https://www.terawatt-technology.com/
Stargate Hydrogen, manufacturer of electrolysers for green hydrogen production, announces the launch of their new Alkaline Electrolysis Stack during the World Hydrogen Summit from 13thto 15th May 2024 in Rotterdam.
Green hydrogen, or H2 produced from water via renewable electricity, is an effective way to drastically cut industrial CO2emissions in industries which until now rely on fossil fuels.
An electrolysis stack is the heart of a system for hydrogen production. The electrolysis stack, named Stellar 100, is manufactured in Europe and has a production capacity of up to 100Nm3/h, which means that every hour it produces enough energy to power a car for 1000 km.
Its patented design was developed by Stargate in cooperation with leading European suppliers and tested by ZSW, a renowned German research institute.
Thomas Ottitsch, Manager of the Electrolysis test field (ElyLab) at ZSW said: "It was a pleasure working together with Stargate Hydrogen's team to test their stack technology at our test facility in Stuttgart. Our independence and scientific approach ensures that the test results compare to other tests with high confidence. We measured the average cell voltage in the stack to be lower than 1.85V (at 0.5 A/cm², 15 barg, 70°C), corresponding to a stack-level efficiency of 80% (HHV)."
The results put the Stellar100 among the most efficient electrolyser stacks available on the market.
Jan Grolig, the Stargate's COO said: – "Launching Stellar 100 is a major milestone for Stargate, we ceased a unique opportunity to develop a new alkaline stack generation avoiding known issues in current alkaline stack design. What makes me most proud was the collective team effort which has made this possible."
The new product is available to the market with the first two stacks earmarked for a 1 MW project in Estonia, followed by a 1 MW delivery to a project in Germany
Stargate Hydrogen | www.stargatehydrogen.com
ZSW | www.zsw-bw.de/
World Hydrogen Summit | www.world-hydrogen-summit.com/
Geotab has launched its report "Taking Charge: On the road to the EV Future" on fleet electrification, offering unique insights into the power of electric vehicles (EVs) in commercial fleets. With aggregated data sourced from over 2 million vehicles globally, this comprehensive study looks at the potential for electrification to make fleet operations more efficient, improve cost management and meet established sustainability goals. In the subset of light-duty fleet vehicles, EVs could prevent the use of 2.2 billion gallons of fuel while avoiding approximately 19 million metric tons of CO2 emissions over the next seven years.
"By leveraging real-world data insights, we can demonstrate the operational and economic viability of EVs across a wide range of fleet applications," notes Eric Mallia, Geotab's Vice President of Sustainability Solutions. "The opportunities for fleets to electrify will continue to grow with better data insights spotlighting challenges and solutions to accelerating adoption, ultimately improving outcomes for business and the planet."
The report explores the feasibility of transitioning from internal combustion engine (ICE) vehicles to EVs in light-duty fleets, analyzing global daily vehicle usage patterns and aggregating data from Europe and North America. It expands on the electrification opportunities by characterizing today's medium- and heavy-duty vehicle usage in US and Canada, offering high-level insights into zero-emission commercial transportation opportunities.
The report consists of three key studies on light-duty EV suitability assessment; medium/heavy duty electrification potential; and charging behavior analysis from aggregate data. Among the key findings:
"These analyses have shown that many fleet applications and fleet duty cycles could be fulfilled by an EV, reinforcing our belief that EVs are key to unlocking sustainable fleet operations today," notes Charlotte Argue, Geotab's Senior Manager of Sustainable Mobility. "We have uncovered a roadmap for fleet electrification that aligns with sustainability objectives, and presents a compelling case for a zero emission transition."
As the transportation industry continues its shift toward sustainability, Geotab remains committed to driving innovation and providing actionable insights to help fleets navigate to more sustainable operations. This report is one more tool to empower fleet managers with the knowledge and resources they need to embrace a cleaner, more efficient future.
For more information and to explore the full report, visit here. To learn more about the Geotab EV Suitability Assessment (EVSA), visit: geotab.com/fleet-management-solutions/evsa/ and read the latest Geotab Sustainability and Impact Report at: geotab.com/about/corporate-sustainability/.
Geotab | www.geotab.com
Yokogawa Electric Corporation (TOKYO: 6841) and energy IT solutions provider GridBeyond of Ireland announce that they have concluded a strategic partnership agreement. Furthermore, Yokogawa has participated in GridBeyond's Series C funding round.
GridBeyond leverages its own unique AI services, robotic trading, and other capabilities to provide an efficient electricity aggregation service that identifies suitable opportunities in the wholesale electricity market, where actually generated electricity is sold, ancillary service markets, where future electricity supply capacity is sold, and capacity markets, where short-term demand and supply balancing capacity is sold. The company has the know-how to help its customers maximize profits by taking market prices and other forecast data, facility constraints, and market opportunities into consideration to determine the best transaction plan for their facilities, and then automatically perform real-time bidding in these three markets. GridBeyond has more than 900 client sites in Ireland, the UK, the US, and Australia, and a track record in managing loads exceeding 1.7 gigawatts. Based on the knowledge gained through these activities and the latest information on electricity market conditions, it ensures trading strategies are always kept in an optimum state.
Soaring electricity prices can have a large impact on businesses, especially those with manufacturing facilities that use large volumes of electricity. Through a demand-response mechanism whereby users refrain from power use in times when there is a tight balance in power supply and demand, electricity trading allows businesses to generate additional income while helping to fulfill their responsibilities to society by stabilizing power supply and demand.
On the basis of this strategic partnership agreement, Yokogawa and GridBeyond will work together to provide consulting and operational services for the implementation of electricity trading, and thereby help customers use electricity more efficiently. With GridBeyond's distinctive know-how and achievements in providing virtual power plant solutions and Yokogawa's extensive experience in providing consulting services to manufacturers, the two companies will be able to propose and assist in the implementation of effective measures that will help customers maximize profitability.
Mark Davis, GridBeyond's Chief Commercial Officer, commented: "We are delighted to announce our collaboration with Yokogawa Electric. This partnership not only supports our ongoing expansion in Japan by supporting Japanese businesses towards their net zero goals, but will also allow GridBeyond and Yokogawa to work together in other global markets too. Yokogawa Electric is a leading company in Japan and internationally, and we look forward to this new collaboration."
Koji Nakaoka, a Senior Vice President of Yokogawa Electric and Head of the company's Energy & Sustainability Business Headquarters, said: “Yokogawa has gained the trust of its customers by leveraging its knowledge and innovative, high-quality technologies to provide measurement, control, and information solutions that contribute to stable operations and streamline operations at manufacturing sites. Going forward, we shall help our customers increase their profits and implement ESG management by combining Yokogawa's specialization in operational improvement with the energy management solutions of our Group company PXiSE Energy Solutions and the electricity trading services of the globally-proven GridBeyond to provide one-stop solutions for the streamlining of electricity use.”
GridBeyond | www.gridbeyond.com
Yokogawa | www.yokogawa.com
Alternative Energies May 15, 2023
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 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.
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 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
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.
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.
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.
Spinergie | www.spinergie.com
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.
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).
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.
ABS Group | www.abs-group.com
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