Turbine fires present significant financial and reputational risks to the wind industry. Manufacturers, project owners, and operators have all taken major steps to reduce fire risk, but to date, most wind turbine fires are covered under insurance policies. However, as renewable energy insurers tighten terms and conditions and increase premiums and rates, the wind industry may have to cover more of the cost if a turbine is destroyed by fire.
Container handling equipment is a major contributor to fires in container yards, with a significant percentage resulting from improper equipment maintenance. In a claims analysis by TT Club, a leading insurance provider to the international transport and logistics industry, it was found that 67% of costs related to fire were attributed to yard equipment.
The exact industry-wide risk for wind turbine fires is hard to pin down. Statistics vary between sources from 1 in 2,000 to 1 in 15,000. As the number of operating wind turbines grows, the total number of wind turbine fires per year will increase unless owners and operators fully manage fire risk. The wind industry takes fire risk very seriously, but often, owners and operators don’t always know where to start when it comes to evaluating their wind turbine’s fire risk.
Wind farm owners and operators retrofit their wind turbines with fire suppression systems for a number of reasons. Some retrofit after losing a turbine to a fire incident, others because of internal risk analysis, and some after receiving a significant increase in insurance rates. There are both pros and cons of retrofitting fire suppression systems. We’ll help you understand if the benefits outweigh the risks of installing fire suppression systems on your fleet.
Wind turbines are multi-million dollar pieces of equipment with sensitive electronics, and from time to time, employees working inside and outside the turbine. In the case of a fire starting in the wind turbine, a fire suppression system can prevent the risk of fire loss in your turbines, but only if properly designed and with a suitable fire suppression agent. Deciding on the best fire suppression agent is important in order to protect your equipment, employees, and the environment.
Wind turbine insurance rates have increased 20-30% in the past few years due to several large claims. A fire in one of your turbines can significantly increase your insurance premiums and raise your deductible levels, causing your insurance to become even more expensive. A fire will most likely adversely affect your insurance policy, but there are ways to make your policy more favorable by mitigating fire risk before a fire incident.
The number of wind turbine fires is increasing as the number of turbines installed increases. For example, a 100-turbine wind farm is on average ten times more likely to have a fire than a 10-turbine wind farm. This trend is affecting the reputation of the industry, hardening the insurance market, and has the potential to hurt the growth of the wind industry.
Texas has been hit by a wave of freezing temperatures that caused major power outages for millions across the state. Around half of wind turbines in the state stopped generating electricity, which caused doubts about the effectiveness of renewable energy. However, wind turbines are operating in frigid places like Antarctica, Norway, the North Sea, and Sweden. How are these turbines able to operate, but those in Texas are not?
Losses due to wind turbine fires can cost $7-8 million, which could be crippling to pay for without insurance. Wind turbine insurance is important to ensure that producing wind energy remains profitable for owners and operators. However, many insureds are surprised that they didn’t understand their insurance policy terms fully when they have a loss.
2020 was a year full of surprises and losses, and it left us with a final destructive parting gift — three turbine fires that made the news within a span of just 11 days. One of the fires occurred on Christmas Day and caused more than a few people to respond to the fire instead of spending the holiday with their family.
Fires in wind turbines have been an expensive issue for years and are an important risk to mitigate. We sat down with Jatin Sharma, the Managing Partner of NARDAC and a leading voice in the renewable energy space, to discuss the current and future state of wind turbine insurance. Learn what wind energy insurance in 2021 will look like from Jatin’s perspective.
There are a lot of things to consider when purchasing and installing wind turbines for your wind farm. One of the packages you may have seen is the ability to add fire detection and suppression to your turbines. We will review the facts to assist you in making an informed decision about active fire suppression and help you gain an understanding if it provides a return on investment when you opt-in.