The Wind Farms Are Coming - Offshore - PowerPoint PPT Presentation

1 / 28
About This Presentation
Title:

The Wind Farms Are Coming - Offshore

Description:

Houston Marine Insurance Conference ... The Windmills are Coming; Offshore Steven Harris Vice President EQECAT, Inc. – PowerPoint PPT presentation

Number of Views:638
Avg rating:3.0/5.0
Slides: 29
Provided by: StevenHar
Category:
Tags: coming | farms | offshore | wind

less

Transcript and Presenter's Notes

Title: The Wind Farms Are Coming - Offshore


1
September 19, 2011
The Windmills are Coming Offshore
Steven Harris Vice President EQECAT,
Inc. 510.817.3105
2
Americas First Offshore Wind FarmWill it be
3
Americas First Offshore Wind FarmOr
"This is Texas. We don't have Walter Cronkite
and Ted Kennedy whining about their back yards,"
Texas State General Land Office Jerry Patterson
- Commissioner
4
What are Offshore Wind Farms?
  • Wind turbines and foundation structures
  • Underwater high voltage cables
  • Offshore substations and operations
  • Onshore substations
  • Onshore high voltage transmission

5
Why are they Coming?Projected Energy Use
Global energy use by fuel type 1990-2035
From US DOE
6
The United States has Ambitious regional growth
targets
  • State and Federal incentives
  • Green energy renewable portfolio standards
  • Texas 7 by 2025
  • New Jersey 20 by 2021
  • California 33 by 2020
  • Hawaii 40 by 2030 !!

7
Offshore Wind Farm Siting and Economics
  • Siting Requires
  • Good wind resource
  • Close to load demands
  • Onshore transmission capacity
  • Total Cost of Energy
  • Cost of generation should be around 0.10 / kWh
  • Most wind farms are financed and require adequate
    insurance

8
U.S. Offshore Wind Resource andTransmission
Grids to U.S. cities
Cape Wind
Others?
Galveston-Offshore
9
What are theCatastrophic exposures?
  • Gulf of Mexico and Caribbean hurricane
  • West Pacific Typhoon
  • European winter windstorm
  • Earthquake in Japan, Western US and Canada,
    Caribbean, South America, and others

10
What is the OnshoreCatastrophic Loss Experience?
Typhoon Maemi Okinawa Japan 2003
Tropical Cyclone 03/A India 1998
(Ishihara et al., 2005a)
(Winter-Jensen et al., 1999)
11
Hurricane Risks to Offshore Farms
  • Hurricanes have damaging wind speeds for wind
    farms located offshore and near the coast.
  • Hurricanes have wind speeds more than 76 mph over
    widths of 60 to 120 miles
  • Hurricanes are also accompanied by large wave
    loadings on structural foundations

12
Wind is the Source of Power
Power Generated by Turbine
Turbine PowerOperating Range
Cut-out Speed
Cut-inSpeed
Wind Speed
13
Technology Trend for Wind TurbinesEach
generation is a bigger prototype
13
14
Direction in Offshore Wind Technology
  • Capital and Energy Costs are declining
  • Higher capital costs than land based
    installations are dropping rapidly
  • Installed capital costs, reliability, and energy
    capture are all improving
  • Technical and Infrastructure Challenges
  • Transmission from windy areas to the load centers
    are being built
  • Specialized vessels, purpose built portside
    infrastructure, robust undersea electricity
    transmission lines will come with development
  • Resource characterization is improving

15
Challenges Facing Offshore Wind Deployment (Cont.)
  • Permitting Challenges or NIMBY Not In My Back
    Yard
  • New and untested permitting processes
  • Uncertainty and risk faced by potential project
    developers and financiers
  • State and federal entities have authority over
    siting, permitting, and installation of offshore
    wind facilities

16
Emerging technology Risk
  • Rapid paradigm shifts with growing technologies
    like wind turbines
  • Larger wind turbines and blades
  • Identical installations and new technologies
  • Highly correlated loss potential
  • Limited cat loss damageability data makes
    engineering expertise critical to rate these
    exposures
  • Potentially expensive coverage

17
Onshore Insurance StructuresTypical Retentions /
Limits Structure
  • Common deductible structures
  • 2-5 for CAT
  • 15 45 days Business Interruption (BI)
  • Limits driven by lenders, corporate or
    partnership property program, (MFL, PML studies)
  • CAT exposures and limits can drive the overall
    premium
  • Manufacturers warranty period for defects (2 -
    5 years)
  • Contingent business interruption
  • Hedges can provide some BI/CBI protection

18
Insurance Questions
  • Who will insure this new technology?
  • How will the infrastructure be insured?
  • Offshore wind turbines
  • Offshore substations
  • Submarine cables
  • Onshore Transmission lines
  • What will the insurance cost be?

19
Business Interruption Risks
  • Potential impact of transformers and transmission
    cable losses with long lead times
  • Limited numbers of available marine vessels and
    cranes
  • Damage to onshore transmission and distribution,
    without damage to turbines, poses contingent BI
    issues
  • Rapid obsolescence of turbines results in spare
    parts and extended BI issues

20
Future technology Insurance Issues
  • Wind farms will go further offshore and into
    deeper waters
  • New and technically challenging design concepts
  • Floating structures
  • Cable moored structures
  • And others

21
EQECATs Approach to Offshore Wind Farm Risk
  • EQECAT and ABS Consulting are sister companies of
    the ABS Group headquartered in Houston
  • EQECAT is a catastrophe modeling company that
    provides cutting edge natural hazard models to
    the insurance industry
  • ABS Consulting is a global risk, safety, and
    integrity management firm
  • ABS Consulting provides full life cycle
    engineering, operations and maintenance, and
    in-service inspection services to the wind energy
    industry

22
ABS Group Wind Energy Services
  • Technology Development/Qualification
  • Offshore Expertise
  • Structure
  • Stability
  • Mooring/soils
  • Certification Authority
  • Certified Verification Agent (CVA) Services

23
Wind Energy Life Cycle Services
  • VII. IN-SERVICE
  • Operational Data Management(Wind Speed,
    Turbulence, Wake, Power Performance)
  • Maintenance Management
  • Mechanical Integrity Management Systems (MMS)
  • Inspection Planning including RBI(Wind Turbines
    and Foundations)
  • Gear Box Condition Monitoring and Inspections
  • Rotor Blade Condition Monitoring and Inspections
  • Coating and Corrosion Protection Monitoring
  • End of Warranty Consultancy and Inspections
  • HSE Consultancy
  • I. CONCEPTUAL PHASE
  • Technical Due Diligence (Energy Yield, Permits,
    Technology Grid)
  • Consultancy and Project Management
  • VI. COMMISSIONING
  • Monitoring and Supervision
  • Functional Safety and Safety Tests
  • Commissioning Supervision
  • HSE Consultancy
  • II. DESIGN BASIS SITE ASSESSMENTS
  • Owners Representative
  • Tender Support and Consultancy
  • Project Management
  • V. INSTALLATION
  • Monitoring and Supervision
  • HSE
  • Project Management
  • III. SITE SPECIFIC DESIGN WIND TURBINE
    FOUNDATION
  • Owners Representative
  • Technical Consultancy
  • HSE Design and Consultancy
  • Project Management
  • IV. MANUFACTURING
  • Manufacturing Quality Audits
  • Supervision
  • HSE
  • Project Management

24
EQECAT Vulnerability Models Developed by
Engineering Studies
  • EQECAT uses a ground up engineering approach
    in the development of vulnerabilities.
  • Claims data incorporated into vulnerabilities
  • Failure modes of power system components, support
    and foundations
  • Manufacturing processes, and control systems
    effects
  • Extreme natural hazard performance measures

25
EQECAT Hazard Models
26
Key EQECAT Model Attributes
  • Fully Probabilistic results
  • Scenario loss simulations
  • Underwritting and Portfolio aggregation
  • Extra-Tropical Wind Storm Surge
  • Gulf of Mexico hurricane wind, and wave models
  • Earthquake models including time dependency in
    California

27
Examples of EQECAT Projects
  • Offshore wind farm portfolio for European winter
    storm
  • Onshore wind farms analyses for earthquake peril
  • Hurricane and earthquake risk models for onshore
    transmission grids
  • Hurricane risk models for offshore oil gas
    platforms
  • Hurricane risk models for Gulf of Mexico oil and
    gas pipelines
  • And more

28
Questions?
Write a Comment
User Comments (0)
About PowerShow.com