Block ip Trap
Mar 28, 2024
Natural Power Supports DIF Capital Partners' Sale of UK Onshore Wind Farm

Leading renewable energy consultancy and service provider, Natural Power, has acted as vendor’s technical advisor on behalf of DIF Capital Partners to support the sale of the 13-turbine, 26MW, Wadlow Wind Farm in Cambridgeshire, England. Closing of the transaction is subject to customary conditions and approvals and is expected to take place in Q2 2024.

wind turbine

The due diligence assignment included a review of the key project agreements, design, operational review and life extension analysis. Natural Power also conducted a post-construction yield assessment as well as a site visit and wind turbine inspection. 

Gregory Dudziak, Head of Advisory (Europe) at Natural Power, said: “The UK needs more onshore wind if we are to meet and exceed COP28 expectations. It’s an area where we have extensive expertise as a team, and we’re delighted to be supporting our client DIF Capital Partners in moving this latest project to the next stage in its lifecycle.” 

Natural Power previously acted as technical advisor at Wadlow in 2016, and also completed operational reporting on the project from 2013 to 2018.

Natural Power | www.naturalpower.com 

Mar 28, 2024
Greenskies Clean Focus and Seminole Financial Services Celebrate 14 Years of Partnership to Accelerate Renewable Energy

Greenskies Clean Focus (Greenskies), a national leader in renewable energy solutions, and Seminole Financial Services (Seminole), a leading financial services firm that specializes in providing debt capital for renewable energy projects, are delighted to celebrate fourteen years of partnership.

This landmark underscores the enduring commitment of both organizations to drive the growth of renewable energy infrastructure and contribute to a more sustainable future.  While other solar developers and renewables lenders have come and gone, Greenskies and Seminole have consistently delivered exceptional results.

Over the years, Greenskies and Seminole have collaborated on several milestone projects, including:

2.2 MW of Commercial Rooftop Solar in Gainesville, FL

In 2010, Clean Focus deployed 2.2 MW of PV solar systems at six sites in Gainesville, FL – most notably 1.58 MW on top of Butler Plaza, the largest retail center in the Southeast.  The combined system was the largest project to date under the Gainesville Regional Utility (GRU) feed-in tariff program.  Seminole funded a $6.8 million construction loan.

22.16 MW of Ground Mount Solar across Cape Cod and Martha's Vineyard, MA

Three years later, in 2014, Clean Focus and Seminole worked together again on a 22.16 MW portfolio of ground-mounted solar for the Cape and Vineyard Electric Cooperative (CVEC).  Clean Focus installed nine systems, seven at closed/capped "brownfield" landfills, throughout Cape Cod and Martha's Vineyard, Massachusetts, ranging in size from 587 kW to 5.91 MW.  Seminole provided over $59 million in construction lending with another $29 million in permanent debt financing for these projects.

18.68 MW of Utility-Scale Solar in Waterford, CT

Greenskies and Seminole's most recent collaboration was last year on an 18.68 MW utility-scale project for Connecticut's Department of Energy and Environmental Protection (DEEP).  Seminole provided $41.7 million of Construction debt for the project.

“The longevity of our partnership with Seminole Financial Services is exceptional.  Founded in the same year, 2009, we quickly forged a partnership that endures today,” said Stanley Chin, President and CEO of Greenskies Clean Focus.  “The collaborative nature of our work has made Seminole an invaluable partner.  Greenskies proudly maintains ownership and operation of all our joint projects.  We look forward to continuing our partnership to achieve even greater success.”

Seminole has established its reputation in the Renewable Energy industry by prioritizing relationships with developers across the country that are in need of consistent and flexible capital.  “Our long-standing collaboration with Greenskies Clean Focus has only served to strengthen Seminole’s standing in the market,” said Chris Diaz, co-CEO of Seminole.  “We feel fortunate to work with the exceptional talent at Greenskies Clean Focus to further our collective impact in the Renewable Energy sector and the community as a whole.”

Greenskies and Seminole remain committed to their strategic partnership and look forward to continuing their work together to accelerate the adoption of renewable energy and create a more sustainable future for all.

Greenskies Clean Focus | www.greenskies.com.

Seminole Financial Services | www.seminolefs.com

Mar 28, 2024
SolarEdge Empowers Dallas Community with Sustainable Energy Hub at Restorative Farms in Dallas

SolarEdge Technologies, Inc., a global leader in smart energy technology announced that it has joined an initiative lead by Green Careers Texas and Restorative Farms, in which the former has built an 800 sq. ft. outdoor classroom, training roof and event space on urban farmland in Dallas powered by PV and battery components donated by SolarEdge. A community model for the use of resilient, renewable energy sources, the facility will allow Green Careers Texas to train individuals for jobs in residential and commercial solar installation, as well as create clean power for operations at Restorative Farms, which provides fresh produce to local neighbors in need.

“SolarEdge is proud to be a catalyst for positive change in Dallas through our collaboration with Green Careers Texas and Restorative Farms,” said Bertrand Vandewiele General Manager of SolarEdge, North America. “Our commitment to empowering communities with sustainable energy solutions aligns seamlessly with the vision of this transformative project. Together, we’re illuminating a path towards a greener and more resilient future for Dallas, showcasing the enduring impact of clean energy on both livelihoods and the environment.”

Located in a food desert in the lowest-income area of Dallas, Restorative Farms integrates sustainable food production, processing, distribution and consumption to enhance the environmental, economic, social and nutritional health needs of the community. Having supplied more than 378,000 vegetables to the local community, the farm faced adversity in 2021 with a grid failure during extreme weather, resulting in the loss of crucial seedlings stored in a refrigerated container.

The microgrid, featuring a 28-module roof-mounted solar system with SolarEdge’s Power Optimizers, maximizes energy production by mitigating the impact of shading from nearby trees.  Additional components  donated by SolarEdge include a 10kW inverter, two 10kW batteries, a Backup Interface, and an EV charger for their future electric delivery vans.

This sustainable microgrid not only powers critical farm operations, but also serves as a hands-on training system for Green Careers Texas’s employment program. Since opening the training facility on the Restorative Farms site, Green Careers Texas has trained more than 50 individuals for future careers in solar installation and sales. The new site will now serve as a permanent home base for the program, which previously moved from site to site for classes.

Tracy Wallace, Executive Director of Green Career Texas, commends SolarEdge’s technology stating, “SolarEdge’s design and functionality, combined with ease of integration, perfectly aligns with our goals. As Restorative Farms plans to expand with a larger refrigerated container, SolarEdge’s design flexibility will ensure the farm is able to easily provide enough energy to power the new container in addition to all its other equipment and processes.” 

SolarEdge | www.solaredge.com

Mar 28, 2024
Origis Energy Promotes Tanya Sessions to Managing Director Power Origination

TanyaSessionOrigis Energy is proud to announce the promotion of Tanya Sessions to Managing Director Power Origination.

“I could not be more pleased to have Tanya join our executive team,” said Vikas Anand, Chief Executive Officer. “She is a strong advocate for our customers and their sustainability goals. Her experience and expertise are invaluable during this time of unprecedented growth for Origis and the industry.”

Tanya joined Origis as Vice President Grid Power in 2022. She will continue to grow the impact of a team spanning the United States delivering on the clean energy needs of a diverse roster of customers including utilities, cooperatives, and municipalities, as well as commercial and industrial customers.

Origis Energy | https://origisenergy.com/

Mar 27, 2024
ACP Statement on Empire Wind’s South Brooklyn Marine Terminal Project Labor Agreement

The American Clean Power Association (ACP) released the following statement from Anne Reynolds, ACP Vice President for Offshore Wind, after Equinor, union leaders, and elected officials from New York announced a Project Labor Agreement (PLA) for the construction of the South Brooklyn Marine Terminal (SBMT), which will support and serve as a staging area for the Empire Wind 1 project:

“Today’s announcement is a demonstration that the offshore wind industry is making good on its promise of creating local, family-sustaining jobs. Project Labor Agreements are an important way to build stakeholder partnerships and advance offshore wind projects. These agreements bring together contractors, unions, and project developers to cooperate on local workforce development and prioritize safety and workforce training. Additionally, Empire Wind 1 will revitalize the South Brooklyn Marine Terminal by reinvesting in a disadvantaged community. Congratulations to both Equinor and the Building Construction Trades Council of Greater New York. This PLA will benefit New York workers and shows the benefits offshore wind power projects can bring to the United States and our coastal regions.”

ACP | cleanpower.org

Mar 27, 2024
United Rentals Completes Acquisition of Yak Access

United Rentals, Inc. (NYSE: URI) (“United Rentals” or “the company”) announced that it has completed its previously announced acquisition of Yak Access, LLC, Yak Mat, LLC and New South Access & Environmental Solutions, LLC (collectively, “Yak”) from Platinum Equity for approximately $1.1 billion in cash. The transaction and related expenses were funded through a combination of newly issued senior unsecured notes and existing capacity under the company’s ABL facility.

Yak is a leader in the North American matting industry with a fleet of approximately 600,000 hardwood, softwood, and composite mats providing surface protection across both construction and maintenance, repair and operations applications. Yak predominantly serves customers in the utility and midstream verticals. For the year ended December 31, 2023, Yak generated $171 million of adjusted EBITDA on $353 million of adjusted revenue across over 40 U.S. states.

Matthew Flannery, chief executive officer of United Rentals, said, “Today we are very excited to welcome Yak to the United Rentals family. This is an acquisition with both strong strategic and financial merits. Not only does it augment our growth capacity with the addition of a leading North American matting solutions provider but it also further differentiates our one-stop-shop value proposition to customers. Combined, this has proven to be a winning strategy for building long-term value for our investors.”

The company plans to update its 2024 financial outlook to reflect the combined operations when it releases financial results for the first quarter in April.

United Rentals | unitedrentals.com

 Yak Access | https://www.yakaccess.com/

Mar 27, 2024
Premier Truck Rental Welcomes Matt Rademacher as Michiana Territory Manager

Premier Truck Rental (PTR), a nationwide custom work truck and trailer rental company, is pleased to announce that Matt Rademacher has joined the team as the Michiana Territory Manager. In this role, Matt will spearhead efforts to assist contractors with their truck and trailer rental needs across Indiana and Michigan.

Matt Rademacher, PTR's Michiana Territory Manager, will be focusing on assisting contractors with their truck and trailer rental needs across Indiana and Michigan.

Matt Rademacher, PTR's Michiana Territory Manager, will be focusing on assisting contractors with their truck and trailer rental needs across Indiana and Michigan.

Located in Michigan, Rademacher has 11 years of sales experience in the automotive sector, joining the PTR team in January of this year. As the Michiana Territory Manager, Rademacher will be working to provide fleet solutions to utility and renewable contractors in the region, forging new partnerships and expanding the company's footprint across both states.

Expressing his enthusiasm for the opportunity, Matt shared, "I'm excited to be part of PTR's rapid growth trajectory. The unique value proposition that PTR brings to the fleet rental industry gives us a competitive edge, benefiting our nationwide customer base." He added, "My goal is to support our Michigan and Indiana customers effectively, providing them with innovative solutions that drive their profitability."

Chandler Shady will be supporting Matt in building the Michiana territory as his Inside Sales Representative.

Brandie Cotton, PTR's VP of Sales, said, "We're glad to have Matt on board as our Michiana Territory Manager. His background in the automotive industry will help us grow our book of business in both Michiganand Indiana, serving the region surrounding our HQ. Welcome, Matt!"

Rademacher will be based in Rockford, Michigan.

Premier Truck Rental | https://rentptr.com/

 

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

 

 

Chris LeBoeuf

Mar 15, 2024
The Failing of Building Integrated Photovoltaics

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,....

Solar Mar 15, 2024
5 min read
Affordable Solar for Everyone

Heat waves encircled much of the earth last year, pushing temperatures to their highest in recorded history. The water around Florida was “hot-tub hot” — topping 101° and bleaching and killing coral in waters around the peninsula. Phoenix had ....

Jason Subiranao

Solar Mar 15, 2024
5 min read
Sourcing Solar Components Through an Online Marketplace Opens New Possibilities for Installers

When it comes to renewable energy, everyone talks about solar, but the solar industry is behind the times when it comes to procuring equipment. E-procurement is becoming the norm for B2B purchases. Think of using Amazon for industrial parts. While ot....

Mitch Bihuniak

Mar 28, 2024

Greenskies Clean Focus and Seminole Financial Services Celebrate 14 Years of Partnership to Accelerate Renewable Energy

Mar 28, 2024

SolarEdge Empowers Dallas Community with Sustainable Energy Hub at Restorative Farms in Dallas

Mar 28, 2024

Origis Energy Promotes Tanya Sessions to Managing Director Power Origination

Mar 27, 2024

Brimfield School District in Illinois Set to Host Solar Farm and Gain Cost Savings

Mar 27, 2024

SolarBank to Acquire 3.15 MW Solar Project in Camillus, New York from Storke Renewables

Mar 27, 2024

Merganser Receives Certification from Bureau Veritas

Mar 27, 2024

Suniva and Heliene Announce Strategic Sourcing Contract to Produce First U.S. Domestic Content-Eligible Crystalline Silicon PV Modules

Mar 27, 2024

GameChange Solar Validates Performance Enhancement Software Features of its Genius Tracker Solar Trackers

Mar 15, 2024
The Crucial Role of Electrical Insulation for Wind Turbines

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 Mar 15, 2024
6 min read
Wind Systems, Alarm Data & Actionable Insights

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. ....

Dr. Sandeep Gupta

Wind Mar 15, 2024
4 min read
A Safe Passage Through the Winds: Turbine site visits

The allure of wind turbines is undeniable. For those fortunate enough to visit these engineering marvels, it’s an experience filled with awe and learning. However, the magnificence of these structures comes with inherent risks, making safety an abs....

Katie Bielefeld

Mar 28, 2024

Natural Power Supports DIF Capital Partners' Sale of UK Onshore Wind Farm

Mar 27, 2024

ACP Statement on Empire Wind’s South Brooklyn Marine Terminal Project Labor Agreement

Mar 27, 2024

SouthCoast Wind Submits Bid in Tri-State Solicitation

Mar 27, 2024

Maine Governor Janet Mills to Speak at Offshore Wind Industry Conference

Mar 27, 2024

Acquisition of Acteon Group

Mar 27, 2024

World's Largest Tonnage and Highest Lift Wheeled Crane Completes Its First Lift in Hengshui, China

Mar 26, 2024

Biden-Harris Administration Approves Seventh Offshore Wind Project

Mar 26, 2024

Sunrise Wind Receives Federal Record of Decision, Takes Final Investment Decision

Jan 15, 2024
Precision Humidity Measurement Drives Fuel Cell Development Forward

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....

Energy Storage Jan 15, 2024
5 min read
‘Driving’ Change: EV Tax Credit Revolution Unveiled in 2024

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....

Greg Reimer

Energy Storage Jan 15, 2024
6 min read
Reaching Pricing Parity: Public EV fast charger vs. traditional fuel

The fact that EV charging is currently cheaper than filling up your traditional gas tank has set a precedent that public EV charging will always remain less expensive. This is certainly a good thing to support the adoption of EVs, but the high infras....

Cole Rosson

Mar 27, 2024

TANAKA to Install 500 kW Fuel Cell System to Promote the Use of Hydrogen Energy at Production Plants

Mar 27, 2024

Greenlane Announces 280-mile Corridor of Commercial EV Charging Stations from Los Angeles to Las Vegas

Mar 27, 2024

FlexGen Launches HybridOS Analyze BESS Software as a Service

Mar 27, 2024

Spark Spot Ignites Excitement with Land Acquisition for New EV Charging Station in Texas

Mar 27, 2024

Catalyst Power Partners with Inovis Energy to Provide EV Charging for Commercial and Industrial Businesses in the Northeast

Mar 27, 2024

Amped Up: FLO and General Motors Expand Workplace Charging

Mar 26, 2024

Eaton Accelerates Shift to Electrified Fleets with New DC Fast Chargers

Mar 26, 2024

American Lithium Strengthens Team and Launches Major ESG Initiative in Peru

Jan 15, 2024
Mind Your Intellectual Property: Strategies for renewable energy leadership

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....

Alternative Energies Nov 15, 2023
4 min read
The Future of Houses is Passive

University of Toronto’s latest student residence welcomes the future of living with spaces that are warmed by laptops and shower water.  In September 2023, one of North America’s largest residential passive homes, Harmony Commons, located....

Justin Biordi

Alternative Energies Nov 15, 2023
5 min read
Demand Response Program Management: Outsourcing vs. in-house

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 ....

Syd Bishop

Mar 27, 2024

United Rentals Completes Acquisition of Yak Access

Mar 27, 2024

Premier Truck Rental Welcomes Matt Rademacher as Michiana Territory Manager

Mar 26, 2024

Premier Truck Rental Welcomes Matt Rademacher as Michiana Territory Manager

Mar 26, 2024

3M Invests in Hydrogen Electrolyzer Manufacturer EVOLOH

Mar 26, 2024

Vitro Architectural Glass Announces New GlassFinder Tool

Mar 26, 2024

Nu:ionic Hydrogen-Producing Microwave Reactor Achieves Commercial Threshold

Mar 26, 2024

TGS Appoints New EVP of Imaging and Technology, Wadii El Karkouri

Mar 26, 2024

Emerson’s New Comprehensive Automation Platform Empowers Decisive Action from Plant to Enterprise