Wind Energy Services
Published: 18-Aug- 2011 | Product Category: Other
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Marsh serves as a trusted risk advisor for most of the onshore and offshore wind energy projects currently in development in the United States.
Despite the economic downturn, investments in new wind turbines continue to increase. Over the last 20 years, the cost of wind turbines has fallen dramatically while their efficiency has improved significantly. According to the AWEA, “The U.S. wind industry broke all previous records by installing nearly 10,000 megawatts (MW) of new generating capacity in 2009.”
Marsh’s renewable energy specialists work directly with wind industry developers, operators, manufacturers, contractors, and utility companies to manage their risks throughout the life cycle of their projects.
For all phases of onshore and offshore wind farms, our commitment to developing customized risk solutions will help drive the industry forward in this expanding and essential energy sector. With Marsh as your risk adviser, you will understand the myriad of project risk issues and how they can be transferred, allocated contractually and financed before your contract is executed and ground is broken. Depending on your specific issues and project particulars, your typical risk mitigation program may include:
- a review of power purchase agreement contracts, engineering procurement and construction contracts, and other supplier and lender contracts for the purpose of advising you of appropriate risk transfer, risk retention, and necessary loan covenant requirements;
- a production of detailed risk analysis reports for the construction and operational phases of projects; and
- a dedicated and industry-knowledgeable claims expert to ensure you recover quickly from any loss.
Marsh Solutions to Key Onshore Wind Risk Issues
Our solutions for key onshore wind risk issues include:
Substation and Power Delivery: Marsh helps clients reduce loss potential by analyzing transformer and generator downtime and the availability of replacement components.
Natural Catastrophe: Marsh’s earthquake and windstorm assessments may help drive down pricing and increase capacity proposed by insurers.
Marsh Solutions to Key Offshore Wind Risk Issues
Our solutions for key offshore wind risk issues include:
Delay in Startup: This includes understanding key bottlenecks such as long lead-times, availability of vessels, availability of key contractor equipment, access to the construction site, losses at suppliers’ premises, and damage to the equipment while in transit or during installation.
Cabling: The type, number, length, burial depth, and method of installation of the export cables are risk issues of particular interest to insurers. Projects with experienced installation contractors and well-considered redundancy across the network may benefit from competitive insurance terms and conditions.
Offshore Wind Force and Wave Load Disruption: This includes recognition of the impact of sea conditions on all types of offshore work—and the associated risk of delay due to any repair work. The combined forces of the wind and waves could significantly affect construction activity, especially the lifting and installation of foundations, towers, nacelles, and any offshore transformer platforms.
For all phases of onshore and offshore wind farms, we are committed to developing customized risk solutions that can help drive the industry forward in this growing and increasingly essential energy sector.
Low Wind Power Protection
Of the four types of alternative energy, wind energy has become the most established form in terms of current megawatts installed and expected future installations. What concerns many clients in the wind industry is generation and revenues.
Unfortunately, we cannot guarantee when or how hard the wind will blow or the sun will shine. That is why Marsh has expanded its Weather and Energy Specialty Practice to include protection from low wind. Our low wind protection hedge is a financial agreement between the developer/owner of a wind farm and weather markets, intended to provide a guaranteed minimum operating margin for the generator, even when wind speeds are not favorable.
Our goal is to focus on minimizing your overall risk profile, making access to affordable capital easier. Therefore, a clear understanding of the entire project including the renewal process is crucial, as the results impact current and future programs. Other current industry concerns include the comprehensive understanding of current and proposed government regulations, technology advances, and lastly, making the right buying decisions.
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