Block ip Trap
PV Hardware USA to Open Nation’s Largest Solar Tracker Manufacturing Facility to Support U.S. Solar Needs
May 28, 2024

PV Hardware USA to Open Nation’s Largest Solar Tracker Manufacturing Facility to Support U.S. Solar Needs

PV Hardware USA (PVH USA) will mark the opening of America’s largest solar tracker manufacturing facility with a celebration attended by corporate leaders and special guests. The new Houston facility will be PV Hardware’s third wholly-owned factory globally, supporting rapidly expanding U.S. solar power generation.

According to the U.S. Energy Information Administration (EIA), solar power is expected to increase from 95 GW of total generating capacity to 131 GW in 2024 and climb to 174 GW by 2025. The new Houston factory will manufacture innovative custom-built solar tracking systems for new solar generation projects, which are expected to be the leading source of growth in the U.S. electric power sector in the coming years.

The invitation-only opening celebration will include a tour of the facility, allowing invited guests to view the factory and discuss the manufacturing process with workers along the assembly line.


WHAT: PVH USA Houston manufacturing facility opening celebration

WHO:        Emilio Garcia, COO and Co-founder of PVH 

Ivan Higueras, CEO of Gransolar Group

Others to be announced


WHEN:           Thursday, May 30, 10:30am


WHERE: PVH USA Houston Facility

8303 McHard Road; Houston, TX 77053

RSVP: To receive press credentials, please contact Shawna Seldon McGregor at 917-971-7852 or [email protected]

PV Hardware | https://pvhardware.com/

 

BOEM Finalizes Environmental Review of Gulf of Maine Offshore Wind Research Lease
May 28, 2024

BOEM Finalizes Environmental Review of Gulf of Maine Offshore Wind Research Lease

The Bureau of Ocean Energy Management (BOEM) announced the availability of its Final Environmental Assessment (Final EA) of an offshore wind research lease in the Gulf of Maine.  “Floating wind technology can make offshore wind a reality in the Gulf of Maine,” said BOEM Director Elizabeth Klein. “BOEM will continue to work in partnership with the state of Maine as we move forward to facilitate the responsible development of offshore wind in this region, as well as the deployment of floating offshore wind technology nationwide.”

In October 2021, the state of Maine requested a research lease for the purpose of researching floating offshore wind energy technology and its deployment. The research site lies 28 nautical miles off the coast of Maine, roughly southeast of Portland, and if developed would comprise up to 12 floating offshore wind turbines capable of generating up to 144 megawatts of renewable energy.  

On May 29, 2024, BOEM will publish the “Notice of Availability of a Final Environmental Assessment for a Wind Energy Research Lease on the Atlantic Outer Continental Shelf Offshore Maine” in the Federal Register. After carefully considering alternatives described and analyzed in the Final EA, as well as comments from the public and cooperating and consulting agencies on the Draft EA, BOEM finds that the issuance of a wind energy research lease within the proposed lease area offshore Maine, and related site characterization and site assessment activities, would have no significant impact on the environment. As a result, under the National Environmental Policy Act, BOEM is not required to prepare an Environmental Impact Statement in order to issue a wind energy research lease offshore Maine.

Upon completion of the Final EA and finding of no significant impacts, BOEM offered the research lease to the State of Maine on May 24, 2024. The State of Maine has 30 calendar days to accept, reject or request modifications to the lease.  

Since the start of the Biden-Harris administration, the Department of the Interior has approved the nation's first eight commercial-scale offshore wind energy projects. BOEM has held four offshore wind lease auctions, including sales offshore New York and New Jersey and the Carolinas, and the first-ever sales offshore the Pacific and Gulf of Mexico coasts. BOEM is exploring additional opportunities for offshore wind energy development in the U.S., including in the Gulf of Maine and the U.S. Central Atlantic coast. The Department also continues to take steps to evolve its approach to offshore wind to drive towards union-built projects and a domestic-based supply chain.

More information about the Final EA and the research lease can be found on BOEM’s website

BOEM | https://www.boem.gov/

 

The WILLOW Consortium Seeks to Revolutionize Offshore Wind Farm Control with Novel Health Monitoring Strategies and Smart Power Dispatch in Curtailed Conditions
May 28, 2024

The WILLOW Consortium Seeks to Revolutionize Offshore Wind Farm Control with Novel Health Monitoring Strategies and Smart Power Dispatch in Curtailed Conditions

WILLOW, Wholistic and integrated digital tools for extended lifetime and profitability of offshore wind farms, aims to achieve an integrated system that will provide an open-source, data-driven health aware curtailment strategy to the offshore wind farm operators. This integrated wind farm control system will look for a trade-off between the power production and the lifetime consumption. Therefore, physical models and data-driven models (AI/ML) will be used to assist decision-making and planning of wind turbine operation and maintenance (O&M) activities. With a 5.8 million euro budget granted within the framework of the Horizon Europe programme, it is expected to contribute to a 50% reduction on the inspection costs, a 5-years lifetime extension of offshore wind farms, a 4% reduction in noise pollution and up to 10% reduction of LCOE (Levelized Cost of Energy), between 3.5 and 4.5 €/MWh.

wind

As wind energy gains ground on the energy market, wind farms will play an increasingly important role in the stability of the electric system. Nowadays, wind farms must deliver commanded output power following the needs of grid operators, as electricity generation has to match demand on real time, which implies producing less power than available. Today this is done either by shutting down a few turbines and letting others produce maximum power, or by down-regulating each turbine by the same amount.

Although these strategies may negatively affect the fatigue life of the turbine, the optimization of these decision-making schemes is extremely complex due to the need to better understand and include many factors such as component degradation, the particular complexity of grid integration, or specific offshore issues like corrosion or the additional loads from waves, tides and currents.

In order to solve all these challenges, WILLOW aims to achieve the following objectives:

  1. Development of a global structural health monitoring (SHM) based on loads, accelerations, images, and thickness losses, considering fatigue progression, pitting corrosion and coating degradation by using physical and virtual sensors combined with Machine Learning (ML) techniques.
  2. Development of prognosis tools by combining SCADA and SHM data, using physical models and ML methods to predict the consumed lifetime and the remaining useful life.
  3. Development of a decision-making support tool for smart power dispatch in curtailed conditions and O&M scheduling.

WILLOW project uses SCADA and other measurements as well as design information provided by Norther Offshore Wind Farm, which consists of 44 turbines with a maximum capacity of 370 MW and is located in the Belgian North Sea. Furthermore, WILLOW is using two offshore test facilities in order to obtain other necessary data and measurements. On the one hand, there is the Blue Accelerator, a maritime innovation and development platform. It is a test site for research new coatings and monitoring solutions, which is located at 500 meters off the port of Ostend in Belgium. On the other hand, there is the HarshLab, the largest floating laboratory for the offshore industry. Equipment, new materials and coatings can be evaluated in a wide variety of conditions ranging from atmospheric to seabed, and it is moored in Biscay Marine Energy Platform (BiMEP), situated in the Gulf of Biscay, north of Spain. 

The project is being carried out thanks to the collaboration of 12 partners from 5 European countries. The coordinator of the project is CEIT, a Basque technological centre from Spain, as well as ALERION, a developer of fully automated drone solutions, the BASQUE ENERGY CLUSTER, an association formed by Basque entities of the energy sector and TSI, specialists in engineering techniques and services. The Belgian partners are 24SEA, experts in SHM services of offshore structures, FLANDERS MAKE and SIRRIS, research centres, NORTHER, offshore wind farm developer and VUB, Vrije Universiteit Brussel. Finally, there is C-CUBE, a specialist in corrosion and wear from The Netherlands, SINTEF, a Norwegian research organisation and WÖLFEL, a German expert in engineering and system solutions especially in SHM offshore and onshore structures.

It is worth mentioning that WILLOW sparks great interest among expert representatives, who will support the project by being part of the Advisory Board. Some of the members of WILLOW’s Advisory Board are: two certification companies, DNV Renewables Certification and SGS TECNOS; the offshore wind developers CAPITAL ENERGY and PARK WIND, several engineering such as AEROBLADENAUTILUS Floating Solutions and ISATI Engineering Solutions; the service provider to wind farms NABLA WIND POWER, the manufacturer SMULDERS and the association WFO, World Forum Offshore Wind, between others. 

Willow | www.willow-project.eu

Canada's Electric Vehicle Battery Supply Chain Sector and Competency Profiles
May 28, 2024

Canada's Electric Vehicle Battery Supply Chain Sector and Competency Profiles

ECO Canada, a leading organization dedicated to advancing environmental careers and the environmental workforce, has released its latest research findings on Canada's Electric Vehicle Battery Supply Chain. The demand for electric vehicles (EVs) is growing worldwide, and Canada has a chance to be a world leader in the sector. Countries including Canada are setting ambitious targets to transition to zero-emission vehicles (ZEVs) including EVs in pursuit of emission reduction and achieving net zero goals. Market and investment trends, both global and domestic, suggest an opportunity to maximize the value of Canada’s battery production supply chain and meet the growing demand for EVs.

Canada is the only country in the Western Hemisphere with known reserves of all the raw materials necessary to manufacture EV batteries and has ample mining expertise and strong environmental, social, and governance (ESG) credentials.

In the Canadian context, the emergence of the EV battery supply chain signifies a strategic opportunity to position the nation as a leader in clean energy innovation. However, Canada’s potential leading position is not solidified with the domestic EV battery supply chain facing significant gaps. Underscoring this potential is the need for a highly skilled and adaptable workforce. This sector profile provides a comprehensive overview of the Canadian EV battery supply chain with a focus on the workforce, exploring key trends, challenges, and opportunities shaping the future of this burgeoning industry.

This report, based on secondary research and stakeholder interviews, aims to shed light on the crucial role of human capital in driving forward the transition to electric mobility and ensuring a sustainable energy future for generations to come.

“The consequences of climate change are unprecedented for our population, the environment, and our economy. By supporting research and reports like the one from ECO Canada, we are working together to face the challenges of today and tomorrow. These findings in the environmental sector will help us to address labour shortages and to achieve Canada’s goal of a net zero economy.” - Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages

Report insights: 

  • The overview of national and global trends in the EV battery supply chain.
  • Identification of critical occupations and skills required in the sector.
  • Insights from EV sector employers regarding barriers, workforce demands, and hiring challenges.

These insights are crucial for policymakers, industry leaders, and environmental professionals, offering actionable data and strategic guidance to navigate the rapidly evolving EV industry landscape.
For more information on Canada's Electric Vehicle Battery Supply Chain Sector Profile and to access the full report, visit Canada's Electric Vehicle Battery Supply Chain Sector Profile | ECO Canada

Simultaneously with the publication of this report, ECO Canada’s research team has developed an interactive tool focused on career pathways in the EV Battery Supply Chain Sector. The objective is to help professionals and employers to gain a better understanding of each job level and category, illuminating the growth path for every position. This visual map of occupations highlights the interconnection between occupations sharing skills and knowledge that could be employed in either role, facilitating mobility within the job market, and in the EV Battery Supply Chain Sector in particular. 

Discover the visual map hereExplore your career opportunities in the EV Battery Supply Chain Sector | ECO Canada

ECO Canada | https://eco.ca/

 

First Hydrogen Signs LOI to Secure e-Vans for Full Integration of Its Hydrogen Fuel Cell Powertrain
May 28, 2024

First Hydrogen Signs LOI to Secure e-Vans for Full Integration of Its Hydrogen Fuel Cell Powertrain

First Hydrogen Corp. (TSXV: FHYD) (OTC Pink: FHYDF) (FSE: FIT) ("FIRST HYDROGEN" or the "Company") has signed a non-binding letter-of-intent ("LOI") to secure, subject to a definitive agreement, a supply of e-Vans built by a large German multinational automotive manufacturer. The Company's hydrogen-fuel-cell powertrain will be integrated into the German-branded vans, the integration process will include access to the vehicle manufacturer's engineering, technicians, support, and certification. The supply line allows First Hydrogen to offer interested fleet operators a customized hydrogen-powered-fuel-cell light commercial vehicle in the near term.

black vanFirst Hydrogen's hydrogen-powered-fuel-cell vehicle (FCEV) recently completed trials with a large multinational logistics company, whose partners use commercial vans for parcel deliveries. The trial took place in London, UK, where the FCEV operated over 8 hours per day with multiple deliveries per hour. 

The Company's FCEV has also demonstrated how its fuel cell powertrain delivers power when needed, achieving outputs of 60kW in transient accelerations, and in previous trials the vehicle has achieved a peak range of 630km (400 miles) on a single refueling in previous trials. This indicates the vehicle can manage more demanding duties, such as carrying heavier payloads, driving over hilly terrain or powering auxiliary equipment (onboard power). 

Balraj Mann, Group CEO, First Hydrogen comments, "This collaboration will provide us access to acquire vehicles, integration capabilities and technical support to bring our FCEVs to the North American market. We were the first to the market with our two original FCEVs which now have completed four successful trials in the U.K. The company continues to receive interest to trial the FCEVs with strong interest from North America."

First Hydrogen | https://firsthydrogen.com/

Sean Pierce, CEO of LOGISTEC, Joins the Board of Directors of Green Marine International
May 28, 2024

Sean Pierce, CEO of LOGISTEC, Joins the Board of Directors of Green Marine International

LOGISTEC Corporation ("LOGISTEC") is proud to announce the nomination of CEO Sean Pierce to the Board of Directors of Green Marine International, an organization created to oversee the leading environmental certification programs in North America and Europe. This appointment reaffirms LOGISTEC's commitment to actively contribute to the development of Green Marine's strategic direction and support the improvement of environmental performance beyond regulations.

CEO Sean Pierce

"I am delighted to join Green Marine's Board of Directors," said Sean Pierce, CEO of LOGISTEC.

"I strongly believe in Green Marine's mission to identify key environmental issues in the marine industry and to find solutions that drive operational excellence. This important program is shaping the future for a sustainable supply chain across North America with plans to further expand around the globe."

"We are very pleased to welcome Sean Pierce to the Board of Directors," said David Bolduc, President of Green Marine International. "Sean's extensive international experience in the marine and logistics sector and his vision for a sustainable future will be instrumental in promoting and building a strong collaboration with marine stakeholders around the globe."   

Green Marine is the most comprehensive environmental certification program in the marine industry, providing a dynamic, scalable framework designed to help evaluate and enhance performance. Through 14 performance indicators, it addresses key sustainability issues such as GHG and air emissions reduction, biodiversity protection, water and soil quality, and community impacts and relations.

With its 27 Green Marine-certified terminals across North America and the highest number of certified terminals, LOGISTEC is leading the way toward implementing eco-friendly practices and supporting conservation efforts to ensure the long-term health and stability of our waterways and the interconnected global supply chain network. 

LOGISTEC Corporation | https://www.logistec.com/

Green Marine | https://green-marine.org/

 

 

dmg events Set to Host the Inaugural California Hydrogen Convention in Los Angeles
May 28, 2024

dmg events Set to Host the Inaugural California Hydrogen Convention in Los Angeles

dmg events to host the California Hydrogen Convention in Los Angeles, CA, United States from May 29-30, 2024, at the LA Convention Center (1201 S Figueroa St, Los Angeles, CA 90015). Co-hosted by Air Products and International Brotherhood of Boilermakers, the event will include representation from over 1,000 attendees from both the public and private sector working to accelerate the growth of California’s hydrogen sector over two days.

Featuring over 100 expert speakers, and a premier exhibition showcasing hydrogen vehicles from Air Products, Hyzon, Honda and Toyota, the event will focus on topics that include building or expanding hydrogen projects to serve power generation, public transportation, heavy duty trucks, consumer vehicles, port operations, and other future applications to decarbonize and expand the clean-energy economy statewide.

“We are excited to welcome participants to the first ever annual California Hydrogen Convention,” says Nick Samain, Senior Vice President of dmg events. “With two full days of programming including a full business conference, technical presentations and exhibition featuring some of the latest technology and mobility, we look forward to welcoming visitors to learn, invest and do business over the next week in Los Angeles”

This year’s Strategic Conference will welcome speakers such as: Eric Guter, Vice President, Hydrogen, Air Products; Johnny Baca, Marketing Manager, International Brotherhood of Boilermakers; Patricia Monahan, Commissioner, California Energy Commission; Angelina Galiteva, CEO, ARCHES H2; Joy Langford, Chief Community Benefits Officer, ARCHES H2; Steven Bradford, State Senator, 35th District, California State Senate; Anna Caballero, State Senator, 14th District, California State Senate; R. Rex Parris, Mayor, City of Lancaster, Ryan Harty, Assistant Vice President and Division Lead, Sustainability Development Division, American Honda Motor Co Inc.; Cory Shumaker, Director, Business Development, Hyzon; Mark Ackiewicz, Deputy Assistant Secretary, Office of Fossil Energy and Carbon Management, Department of Energy, United States Government; Heather Tomley, Managing Director of Planning and Environmental Affairs, Port of Long Beach; Kristi McKenney, Chief Operating Officer, Port of Oakland; Mike Galvin, Director, Waterfront and Commercial Real Estate, Port of Los Angeles; Stephen Cheung, Chief Executive Officer, Los Angeles Economic Development Corporation; Hilary Norton, Commissioner, California Transportation Commission; Tyson Eckerle, Senior Advisor, Clean Infrastructure and Mobility, California Governor’s Office of Business & Economic Development (GoBiz). The full list of speakers can be found on the California Hydrogen Convention website.

All Access Pass holders gain access to the Strategic Conference and high-caliber networking opportunities including Opening Night Reception. Visitors can engage with exhibitors and all Technical Theaters programming featuring over 30 sessions, located on the show floor.

For more information on how to participate at the California Hydrogen Convention, please visit www.californiahydrogen.com. Media are requested to pre-register before May 27 HERE for a media pass granting full access to the event.

dmg events | www.dmgevents.com

Investing in the Future: Mobilizing capital and partnerships for a sustainable energy transition

Alternative Energies Jun 26, 2023

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 ....

Lessons Learned: The first case of heavy maintenance on floating wind
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

Choosing the Right Partner Mitigates Project Risk
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

Achieving Grid Modernization Goals Through Value-based Decision Making
Alternative Energies Sep 01, 2023
4 min read

Achieving Grid Modernization Goals Through Value-based Decision Making

Grid modernization is having a profound impact on the nature and regulation of North American utilities. It represents a significant change to the way energy is managed, distributed, and used—today and in the future. As Environmental, Social, and Governance (ESG) targets become increasingly important to energy investors and regulators, how can organizations transform their Asset Investment Planning (AIP) processes to overcome challenges and take advantage of emerging opportunities?

copper crane

Grid modernization

The energy transition refers to the global energy sector’s shift from fossil-based systems of energy production and consumption to renewable energy sources like wind and solar, as well as long-term energy storage such as batteries. The increasing penetration of renewable energy into the energy supply mix and the onset of electrification and improvements in energy storage are key drivers of the energy transition.

Grid modernization is a subset of the energy transition, and refers to changes needed in the electric transmission and distribution (T&D) systems to accommodate these rapid and innovative technological changes. Grid modernization often necessitates the increased application of sensors, computers, and communications to increase the intelligence of the grid and its ability to respond swiftly to external factors. The main goals of the grid are to provide the capacity, reliability, and flexibility needed to adapt to a whole range of new technologies (in the drive to net zero), while maintaining a comparable level of service and cost to the end customer.

Grid modernization projects are driven by both climate resilience through hardening of assets and changes to the T&D network to accommodate climate mitigation strategies. There are 3 broad categories for these types of projects:

  1. Climate Resilience and Infrastructure Hardening
    • These investments cover physical improvements to T&D assets to reduce outages or damage, and enhanced system capabilities in the areas of flood resistance, storm hardening, wildfire risk mitigation, and cyber security.
       
  2. Smart Grid and Distribution System Modernization
    • Projects in this area cover advanced grid technologies that enable two‐way communication, self‐healing, and autonomous restoration (using digital sensors and switches with advanced control and communication technologies). Advanced metering and communication infrastructure are also included in this category.
       
  3. Distributed Energy Resource (DER) Optimization
    • These projects cover grid modifications required to support the integration of resources such as microgrids, distributed solar, wind, and storage (hydrogen, battery), as well as the inclusion of electric vehicle (EV) charging infrastructure.

two circles

Grid modernization is accelerating due to multiple factors, such as decarbonization, electrification, extreme weather, and security threats.

Valuing innovative projects

The changing demands dictated by grid modernization will require organizations to strike the right balance between cost-effectively managing the current business, while investing appropriately to meet future demands. Organizations are already seeing an increase in both the volume and variety of grid modernization projects. This is leading to increased planning complexity, requiring utilities to demonstrate that they are spending their limited budgets and resources to maximize value and drive their ESG and performance targets.

A value-based approach to investment decision making is key to establishing a common basis to evaluate potential investment opportunities and meet the challenges of grid modernization. The key to achieving your organization’s grid modernization goals is building a multi-year plan that breaks the work into executable chunks. This ensures adequate funding and resources are available to carry out the plan in the short-term, resulting in incremental progress toward longer-term objectives. 

With a value-based decision-making approach, organizations can ensure they are making the right grid modernization investments—and justify their plans to internal and external stakeholders.

Align decisions with strategic objectives

 Business leaders must develop frameworks that quantify the financial and non-financial benefits of all proposed investments on a common scale and understand how projects will contribute to their short- and long-term grid modernization initiatives and broader energy transition goals. A value framework also creates a clear line of sight from planned investments to regulatory and corporate targets, allowing organizations to provide transparency into the decision-making methodology—and demonstrate the benefits of their plans to regulators, stakeholders, and customers: 

 

authorRuss is a Director of Product Management, Decision Analytics at Copperleaf. He is an innovative leader with over 20 years of comprehensive business and technical experience in high-tech product development organizations. Russ holds a B.A.Sc. in Mechanical Engineering from the University of British Columbia and a Management of Technology MBA from Simon Fraser University.

Copperleaf | www.copperleaf.com

 

 

 

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