Renewable Energy in India

1
UNISON Credentials…. Your Trusted Insurance Partner
Since 1998

650
Crore+
500+ 20+ 250+ 98% 10

Gross Premiums Satisfied Corporate Years of Operation Technical and Client Retention Offices in India
handled Clientele Functional Experts

We provide bespoke insurance, reinsurance and risk management solutions across

sectors such as Renewable & Non Renewable Power, Ports, Oil & Gas, Shipping,
Chemicals & Fertilizers, Pharma & Speciality Chemicals, FMCG, Infrastructure (Steel,
Having handled Cement, Construction), Financial Services, Entertainment Industry & several other sectors.
Claims of USD 120
million*
*(as of July 2018)
 Installed Capacity in India
⁍ India accounts for approximately 4 per cent
of the total global electricity generation and
contributes 4.43 per cent to the global
renewable generation capacity.

⁍ The International Energy Agency’s World

Energy Outlook projects a growth of
renewable energy supply to 4,550 GW in
2040 on a global basis.

⁍ As of February 2018, total renewable

power generation installed capacity in the
country stood at 107.81 GW, which is 32.26
per cent of the total installed capacity of
334.15 GW.

⁍ A hydro power revival policy is underway

which amongst others is likely to include Notes: RES – Renewable Energy Source; GW - Gigawatt, CAGR - Compound Annual Growth Rate; FY18* -
the classification of all hydro power projects data up to February 2018, Large Hydro power projects not included in renewable energy targets of GOI
Source: CEA, makeinindia
as renewable energy

3
 Market Size
Total installed renewable energy capacity (including large hydro projects) in India touched 114.43 GW as of May 2018, which is around 33 per cent
of total energy capacity of the country.

⁍ Power generation from renewable energy sources in India reached 85.65

billion units in FY18 (up to January 2018).

⁍ The Government of India has formulated an action plan to achieve a total

capacity of 60 GW from hydro power and 175 GW from other RES (excluding
large hydro projects) by March, 2022, which includes 100 GW of Solar power,
60 GW from wind power, 10 GW from biomass power and 5 GW from small
hydro power

⁍ Solar installation in India is expected to increase 360 per cent by 2020.

⁍ India witnessed highest ever solar power capacity addition of 5,525.98 MW

and 467.11 MW of wind power capacity addition in 2017-18. 15,000 biogas
plants were installed during the same time period.

⁍ About 4.96 million household size biogas plants have been installed in India
since the inception of National Biogas and Manure Management Programme
(NBMMP).

4
 Developments & Investments in India
According to data released by the Department of Industrial Policy and Promotion (DIPP), FDI inflows in the Indian non-conventional energy sector
between April 2000 and December 2017 stood at US$ 6.26 billion. More than US$ 42 billion has been invested in India’s renewable energy sector
since 2014.

Some major investments and developments in the Indian renewable energy sector are as follows:

⁍ With 28 deals, clean energy made up 27 per cent of US$ 4.4 billion merger and acquisition (M&A) deals which took place in
India’s power sector in 2017.

⁍ In March 2018, ReNew Power finalised a deal estimated at US$ 1.55 billion to acquire Ostro Energy and make it the largest
renewable energy company in India.

⁍ World’s largest solar park named ‘Shakti Sthala’ was launched in Karnataka in March 2018 with an investment of Rs 16,500
crore (US$ 2.55 billion).

⁍ Solar sector in India received investments of over US$ 10 billion in CY 2017.

⁍ Private Equity (PE) investments in India's wind and solar power have increased by 47 per cent in 2017 (January 1 to
September 25) to US$ 920 million, across nine deals, as compared to US$ 630 million coming from 10 deals during the
corresponding period in 2016**.

5

The Government of India
has announced plans to
implement a US$ 238
million National Mission on
advanced ultra-
supercritical technologies
for cleaner coal utilisation.
Government Initiatives
A new Hydropower The Ministry of New The Indian Railways is Around 4.96 million household
policy for 2018-28 and Renewable taking increased size biogas plants were
has been drafted for Energy (MNRE) has efforts through installed in the country under
the growth of hydro decided to provide sustained energy the National Biogas and
projects in the custom and excise efficient measures and Manure Management
country. duty benefits to the maximum use of clean Programme (NBMMP) by
solar rooftop sector, fuel to cut down 2016-17 end.
which in turn will emission level by 33
lower the cost of per cent by 2030.
setting up as well as
generate power, thus
boosting growth.
6
 Road Ahead

⁍ The Government of India is committed to increased use of clean energy sources and
is already undertaking various large-scale sustainable power projects and promoting
green energy heavily.

⁍ In addition, renewable energy has the potential to create many employment

opportunities at all levels, especially in rural areas. The Ministry of New and
Renewable Energy (MNRE) has set an ambitious target to set up renewable energy
capacities to the tune of 175 GW by 2022 of which about 100 GW is planned for
solar, 60 for wind and other for hydro, bio among other.

⁍ India will need investments of around US$ 125 billion to reach this target. As of June
2018, Government of India is aiming to achieve 225 GW of renewable energy
capacity by 2022, much ahead of its target of 175 GW as per the Paris Agreement

⁍ It is expected that by the year 2040, around 49 per cent of the total electricity will be
generated by the renewable energy, as more efficient batteries will be used to store
electricity which will further cut the solar energy cost by 66 per cent as compared to
the current cost.

⁍ Use of renewables in place of coal will save India Rs 54,000 crore (US$ 8.43 billion)
annually.

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 C u m u la t i v e I n s t a lle d W i n d C a p a c i t y (M
India Wind Energy Forecast Year 2015-2020-2030

250000

200000 191711

150000
124826 Sum of 2015
Sum of 2020
100000 89299 Sum of 2030
66400
59351
50000 32933 31499 37436
23784

0
New Policies scenario Moderate scenario Advanced scenario

Under the International Energy Agency new policy scenario:

Wind Installed capacity by 2020 : 32 GW Wind Installed capacity by 2030 : 66 GW
Electricity generation by 2020 : 81 TWh Electricity generation by 2030 : 120 TWh
CO2 emission reduction by 2020 : 48 millions of ton CO2 emission reduction by 2030 : 105 millions of ton

Under the Global Wind Energy Outlook moderate scenarios: it was expected to have 18.6 to 19 GW installed capacity; which is achieved & under
moderate scenario total installed capacity would reach 59 GW by 2020 & 124 GW by 2030.

Nevertheless the GWEO advanced scenario shows that the wind development in India could go much further:
Wind Installed capacity by 2020 : 89 GW Wind Installed capacity by 2030 : 191 GW
Electricity generation by 2020 : 219 TWh Electricity generation by 2030 : 504 TWh
CO2 emission reduction by 2020 : 131 millions of ton CO2 emission reduction by 2030 : 304 millions of ton
Source: Global Wind Energy Outlook
Our Value Addition in Renewables

Comprehensive Risk coverage with all relevant clauses

applicable based on risk exposure & Valuation/ SI
adequacy as per available suitable methods adopted.

Understanding contractual obligations and treaties in place

for Tier I, II, III basing on the power evacuation system
specifically to avoid disputed during LOP claims

Rapport with clients to enhance in Underwriting and

speedy settlement of claims

Prior claims data around the globe been considered and

relevant clauses incorporated in Underwriting - Proven
& Unproven technology identification

Utmost fair settlement in the interest of Policy holder

Lack of Wind hedge products with leading weather risk

solutions providers in Europe

Leaders in developing tailor made policies to mitigate renewable risks

Roadmap for Underwriting Risks

Dialogue with your risk team to assess existing policies &

Initiation
contractual obligations.

Risk Inspection/ Risk Inspection/ Valuation and finalize underwriting slip

Valuation with consent of your team

Meetings Meeting with Risk Underwriters

Secure Capacities from Lead and Co-Insurers before

Underwriting
binding policy placement

Integration Integrate our Key Value Additions /

Recommendations
Power Evacuation Details and Its
Criticality
Major BI Claim under CBI Extension

Claim Size 22 Cr
The transformer bushing was damaged due to sudden lightning surge
in the line and due to the huge pressure created in the bushing oil
which created fire on the top portion of the transformer and damaged
the one portion of the Radiators, Pumps and the Foundation.
Asset belongs to OEM

Claim under which section of policy:

Customer Premises Extension -(Named basis-Domestic only) upto 20%
of the Sum Insured under the Business Interruption Section solely due
to FLEXA and AOG Perils up to Second tier only-

Transmission Lines, Pooling station & Substation Details:

Coverage for T & D Lines, Pooling Substation and Substation are
restricted upto 20% of the Sum Insured under the Business
Interruption Section solely due to FLEXA and AOG Perils up to
First/Second tier only.
Cause of loss challenges
1. Warranty
2. Force Majeure
3. Time limitation for repair/ reinstatement
4. Power loss minimization- when the OEM fails to repair/
Replace Insured had to purchase the transformer
5. AOG peril will only operate in CBI extension
Transformer in Rajasthan Catches Fire

Transformer caught fire at

440 KV GSS, Akal
Jaisalmer, Rajasthan.  Fire
spread and was just 10 Ft.
away from huge oil storage
area
 Power Evacuation
TRANSCO
54 MW A + 46MW B owned Grid
Pooling Substation Metering substation
point
Shared Pooling
substation maintained
Grid
by Third party
Substation
132kV line constructed by A
and B and maintained by A
33kv
through Third party, however Kms of
lines
due to regulation that all lines transmission till
above 66kV belong to the the lines
transmission company, it is approach cities
TRANSCO owned. where the
voltage is
stepped down to
below 66kV

Govt
Though Govt (46MW) and Zuari (6MW) are our end Substations
customers who pay us, our liability ends at the
54 MW Wind Farm metering point. If the grid substation transformers
are down due to physical damage, then we would
be asked to reduce/stop our production. Govt Lines
Turnkey project-SCHEMATIC DIAGRAM representing Wind farm, transmission
line, pooling substation and DISCOM substation under Tier - I & Tier – II for
insurance

Tier – I
(Transmission lines & Pooling substation - Tier – II
Property of OEM) (DISCOM property)

Pooling sub-station DISCOM sub-station

Wind farm
Self Developed Project-SCHEMATIC DIAGRAM representing Wind farm,
transmission line, pooling substation and DISCOM substation under Tier - I &
Tier – II for insurance

Asset of Client Tier – I

(Total property is covered) (DISCOM property)

Pooling sub-station DISCOM sub-station

Wind farm
Underwriting and Key Policy
Coverages
Addon covers..1
WIND IAR SOLAR IAR
 STFI  Earthquake (Fire and Shock) Endorsement
 Earthquake (Fire & shock)  Terrorism Damage Coverage Inclusion
 Architects’, surveyors’ and consulting engineers’ fees  Re-Instatement Value Clause
(in excess of 3% of claim amount)  Local Authorities Clause
 Debris Removal - (in Excess of 1% of claim amount)  Designation of Property Clause
 Loss Minimization Expenses  Omission to insure
 Escalation  Escalation
 Omission to insure additions / Alterations  Architect surveyor and Consulting Engineers fees
 Startup and Shutdown Expenses  Debris Removal
 Fire Fighting & foam Consumption Expenses  Claim preparation clause
 Additional increase in cost for hiring crane /erection &  Loss Minimization Expenses
dismantling  Valuable plans and documents
 Auditors Fees  Auditors Fees-– Limits as per annexure
 Customer Premises Extension Sum Insured under the  Primary and noncontributory clause
Business Interruption Section solely due to FLEXA and  Waiver of subrogation
AOG Perils up to First/Second tier only  Waiver of Contribution Clause
 Expediting cost including Express Freight & Air freight  72 Hours Clause
 Extension to cover loss due to accidental failure of  Goods held in trust
Public Utilities-Utility extension capped at 17% of BI SI  Smoke damage followed by Insured peril
–direct / firs tier, domestic only- restricted to FLEXA  Brand and trademark clause
and AOG  Payment on account clause
 Involuntary betterment  Startup Expenses
 Cost of rewriting records clause  Nominated Adjusters clause
 Destruction cost including Hazardous wastage disposal  Expediting Expenses including Express Freight and
& incineration process. Air Freight
 Automatic Reinstatement  Civil Sum Insured to include Roadways, Pathways
within the solar plant
 Landscaping costs to be covered
 Additional Customs Duty limit
MARINE CUM ERECTION PROJECT INSURANCE
 STFI
 Earthquake (Fire & shock)
 Third Party Liability including cross liability & during
extended maintenance period
 Debris Removal
 Owners surrounding property with FLEXA
 Contractor Plant & Machinery
 Offsite Storage cover
 Extended Maintenance cover
 Loss Minimization Expenses
 Professional Fees Clause
 Escalation
 Automatic Reinstatement clause
 Expediting Costs
 Design Defect Cover as per "DE-4" wording of Munich Re for
Electrical & Mechanical and DE-3 for civil work
 Pro rata extension clause
 Additional custom duty
 Disposable of hazardous material
 50/50 clause
 72 hrs. clause
 Waiver of subrogation clause
 Waiver of Contribution clause
 Put to use clause / Continuity of Cover during Operational
Phase for unit/Plant tested but awaiting integral testing
(along with other units/plant)
 Accidental Loss to Valuable papers & Records
 Multiple Insured clause
 Loss Payee clause
 Public Authorities clause
 Amendment in Fire Fighting wordings
Addon covers..2
WIND IAR SOLAR IAR MARINE CUM ERECTION PROJECT INSURANCE

 Damage to leased buildings and equipment  Transformer Oil to be included subsequent to  Claim preparation clause
 Claims preparation cost damage/loss  On account Payment
 Temporary repairs clause  Cost of restoring data is Scada limit  Nominated Adjuster Clause
 Reinstatement Value clause  Automatic Reinstatement of Sum Insured Clause  Suspension of Testing Period
 Designation of Property clause  No vitiation clause  Refund of premium for cancellation of policy
 Local Authorities clause  Including breakdown due to failure of computer control  Temporarily Works clause
 72 Hours clause equipment and Scada system  Waiver of FIR under burglary/theft claims
 Denial of access clause  Customer/Supplier extension  Free issue Material clause
 Goods held in trust or on commission clause  LOP due to Denial of  Partial/Complete Cessation of work
 Agreed bank clause  Increased cost of working  Agreed bank Clause
 Alternative basis of settlement  Auditors Fees  Non- Vitiation Clause
clause(Turnover/output)  Premium adjustment clause  Continuity cover
 Business Interruption wordings on - Difference basis  Alternate basis clause  Normal Excess
 Departmental clause  Departmental clause  Testing period Excess
 Waiver of contribution clause  Primary and non-contributory  Other Excess: DE3, DE4, etc
 Waiver of subrogation clause  Indemnity period  AOG Claim Excess
 Non- vitiation clause  T&D lines on first loss basis for both MD+BI combined  Marine Excess
 Brand and trademarks clause for FLEXA and AOG perils only  ITC - A cover
 Loss payee clause  Any loss or damage to solar plant under erection,  SRCC Clause
 Immediate repairs clause testing and commissioning are outside the scope of the  Loading and unloading clause
 On account payment clause policy.  Warehouse to warehouse clause
 Inadvertent Omissions  Agreed Bankers Clause  Concealed damage clause
 Return of premium clause  Deletion of Storage Limitation clause
 Institute replacement clause
 POTENTIAL DAMAGES – TYPICAL LOSSES
LIGHTENING DAMAGE
Wind turbines have been hailed as one of the greatest advancements in
the age of renewable energy, but often the potential negative impacts
and occasionally downright deadly disasters involving these green energy
darlings are ignored. Losses may occur in any part of the turbine. High
losses occur due to the total fire/destruction of the unit. Total losses of
wind turbines frequently occur due to fires following a lightning strike or due
to damage to mechanical or electric wind turbine components.

DAMAGE TO CENTAL ELECTRICAL PANELS AND EQUIPMENT

Damage to the transformer substation, especially damage to
transformers is possible and will put an entire wind farm out of operation
if it occurs. The number of damaged cables in wind farms has
increased recently and this occurrence will have the same effect, i.e. a
temporary downtime of the entire wind farm.

If the substation transformers are not owned by the wind farm owner,
the downtime increases as multiple parties are involved in the
restoration of the same.
CONVERTERS AND OTHER ELECTRIC EQUIPMENT
Damage to electric components of a wind turbine usually is not
different in terms of features from damage occurring in electrical
systems used in other areas of application. Electronic
semiconductor components, especially insulated-Gate Bipolar
Transistors (IGBTs) constitute an exception to this rule. These
components are used in the power electronics section of wind turbines
in order to make constant and mains-compatible electric power
available for feeding into the mains grid from wind-oriented units
with variable generator frequency and voltage through a converter.
Failure of these semiconductor components results in a wide range of
damage which rarely reaches the loss amounts mentioned above.

BURGLARY
The number of damaged cables in wind farms has increased recently, putting the entire wind farm out of
operation temporarily. Stolen cables are frequently the origin of such cases. In other cases, damage to cables
occurs, for example excavators often cut cables during excavation works in the vicinity of these wind farms.
GEAR BOX DAMAGE OR ROTOR DAMAGE IN TURN LEADING TO FIRE LOSS

Gearbox damages and rotor damage counts among the most

expensive losses that can occur on a wind turbine. Variations in
load occur due to gusts of wind, turbulences, and braking processes
as well as periodic loads due to tower oscillations etc. Premature
material fatigue on gears, gearbox parts and on shaft and gearbox
bearings cannot be excluded under these conditions. During these
conditions, the overstressed brakes, hot bearings and also
lightning strikes may lead to fire. Mechanical or mechano-
hydraulic brakes may reach high temperatures if the aerodynamic
brakes fail during operation, and thus constitute another hazard
that can cause ignition of combustible materials.
Fire cause almost total losses of wind turbines. The avoidable fire loads that
occur often include oil and grease escaping through leaks in lubrication
systems. In addition, there are numerous components of a wind turbine
which represent high fire loads due to their operational use, e. g. cable
harnesses, control cabinets as well as plastic coverings and GRP rotor
blades. Fires of electronic equipment / control system / compensation
units are also possible.
 Loss Prevention

The overall property and liability risk for wind turbines is almost common. The level of protection needed should be
based on an individual risk analysis. The following are the basic loss prevention methods used to reduce the risk in
the turbines:

 LIGHTENING PROTECTION OF WIND TURBINES / WIND FARMS

Apart from lightening, over voltage is one reason which can destroy certain electrical and electronic
equipment. In order to safeguard the critical electrical equipment and sensitive control system of wind
turbine, an over voltage protection is recommended. The manufacturers consider this in an early stage and
design it as per the maximum hazard category according to IEC 62305. The continuous functionality of the
same depends on the regular maintenance of the system with regular inspection and immediate removal of
any faults that have been detected without any delay.

Regular testing of the earth resistance is therefore required to ensure the function of the lightning
protection system along the entire distance from the blade tips to the earthing.
FIRE ALARMS AND FIRE PROTECTION SYSTEMS
Considering the entire turbine as single equipment, there is no structural fire compartmentalization, a
fire can spread and cause total destruction of the plant. In case of fire in the nacelle, the probability of a large-scale
loss due to a fire is increased by the fact that the fire brigade cannot fight a fire at such heights.
It is recommended to protect large turbines with a cost-effective ‘clean agent’ micro-system that only targets the
specific fire hazard. There are devices on the market that are safe for release in case of fire and safe even while
technicians are inside a turbine. There are also multiple options for extinguishing fire in the substation
transformers like N2 flooding system and High Velocity water spray system.

REMOTE CONDITION MONITERING SYSTEM

Breakdowns that attribute to fires and large repairs can be reduced provided they are continuously
monitored. Monitoring and analysis of bearings, gearbox (of the generator), rotor blades and other components
are essential for enabling detection of developing damage (to overheating and vibrations of bearings, electrical
faults) at an early stage and can allow avoidance or limitation of potential damage with little effort.

INSPECTION AND MAINTENANCE PROGRAMS

Regular inspection of turbines helps out in identifying the faults in systems. Each and every manufacturer
provides recommendations on the inspection schedules. This includes regular visual inspections, trending unit
performance and analysing lube oil in the gearbox. Also all the interlocks and protections are to be tested (for wind
cut-off/cut-in, vibrations, temperatures) post overhaul of the machine or annually.
Major Claims and Their Key
takeaways
The error "error converter step up IGBT" came at 06:18
hours on 19.08.2018 at Location MVMPR 12 (VEL 1936)
and also communication was failed at the same time. The
shift engineers while reached the location they found that
smoke come out from the bottom part and nacelle as well.
Immediately it was informed to SIC of Regen. He informed
to fire bricade Dharapuram and they reached to the location
at 09:15 His and extinguished the fire within 30 minutes
Major Claims
Middle Tower Claim
 ODC consignment
 As per RC 34 tons to carry but carrying 42.1 Tons

Hence Insurers have tried to repudiate the claim

Our Efforts
 While Underwriting we took a deviation that we will adhere to
Supplier(GE) Std operating procedure.
 Discussions with Insurer and Insured for considering the claim

 Hence Claim settled under Non Std, assessment given

below

Description Amount - Rs.

Invoice value of Loss        61,93,419

Add 10%         6,19,341
salvage      8,00,000

Less: Policy Excess (0.25% of insured value of consignment –

min 10,000/-)
          17,031
Net Adjusted Loss        47,97,247
Net Assesed Loss 59,95,730

80% on account of over loading

     47,96,584
Major Claims

Blade Claim
 LM technical report on reparability issues
 Handling issues at site arising to Gross negligence
 SOP related issues

Hence Insurers have tried to repudiate the claim

Our Efforts
 Understanding Contractual obligations
 Detail deliberations on admissibility and cause of loss
 Having meeting of all concerned under one roof.
 Discussions with Insurer and Insured for considering the
claim
 Hence Claim settled, assessment given below

Description Amount - Rs.

Original Procurement cost of each blade

       85,91,494
Add: 10% towards escalation
          8,59,149
Gross Assessed Loss
       94,50,643
Less: Policy Excess -5%
          4,72,532
Net Assessed Loss        89,78,111
Major Claims
HUB Claim
 Vehicle is overloaded.
 GE was unable to substantiating the damages to the bearings

Hence Insurers have tried to repudiate the claim

Our Efforts
 While Underwriting we took a deviation that we will adhere to
Supplier(GE) Std operating procedure.
 Technical report on cause of loss & reparability issues dealt
 Admissibility of loss considering 3 No’s of bearings instead of 1 No’s
 Discussions with Insurer and Insured for considering the claim
 Hence Claim settled under Non Std, assessment given below

Description Amount - Rs.

Invoice value of Loss        53,26,361.89

Less: Salvage Value          5,00,000.00
Net Assessed Loss        48,26,361.89

Less: Policy Excess (0.25% of insured value of consignment -

Rs.1,16,45,574.60)
            29,113.94
Net Adjusted Loss        47,97,247.96

50% of the Assessed Loss as negotiated Settlement

     23,98,623.98
Major Claims
Wind Mast Claims X 2
 Reinstatement is an issue
 Calculating wind mast life

Our Efforts
 Detail deliberations on cause of loss
 Adopted strategy to take life of mast by proper justification
into consideration to gain mileage on depreciation
 Discussions with Insurer and Insured to settle the claims on
market value

 Hence Claim settled on Market Value, assessment given

below

Amount - Amount -
Description
Rs. Rs.
  120 Mtr 90 Mtr
Gross Loss Assessed On Damaged Wind Mast
15,36,080 10,80,675
Less Depreciation 30%    
Less Salvage 49,500 30,500
Less Under Insurance 0 0
Less Policy Excess 5% of the claim amount subject to
Min of Rs.10,000/- 51288 36,299
Net Assessed Loss 9,74,468 6,89,674
Damages in erection phase
 Though specialized vehicles are used for the transportation of the oversize load
components and utmost care is exercised by the trained driver; the damages occur and
are of huge extent attributable to delay in start
The estimated loss: Repair: Preventive measures:
The loss due to erection is anyhow deemed to The main damage is to the root flange, and *The erection standard must be followed by
be a huge loss. The loss due to failure of a considering the site conditions, it is the erection and commissioning team.
Hydra crane resulted into fall down of Blade. reasonably not possible to repairs basing on *Ensure equipment's used for handling are
the facts that root flange consist of ~ 150 physically fit to lift the components
The Blade has fell down from a height of 4 layers of glass fibre, even though hand
Mts. Hence created an impacted & The lamination it is not possible to drill and put *The hydra crane operator MUST be well
trailing edge & leading edge of the Blade got the studs in exact positions. trained and experienced in handling.
damaged severely. Similarly the Root flange
has cracked along 6 stud in circumference. There is a long crack running through leading *The rigor plays an important role. They are
The depth is unknown and crack is so that a edge and damages noted at trailing edge. not highly skilled or qualified; however well
thin knife cutter can be inserted. trained rigor must be hired.
Considering all points, it is quire impossible to *Ensure environmental conditions are in
The profile loss and need a replacement. regain the design strength and stability of the favour for erection, if not, erection may be
Blade. postponed
Typical damages during the transportation or storage of the
tower sections
Possible cause of loss:

*Improper storage of the Can

*Prolonged storage without adequate precautions of storage pad
*Improper handling while transportation

Repair:

*The De - denting process require the foreign expertise

*The De-denting process involves the welding inspection,
examination of weld particles followed by Ultrasonic tests
Tower section formally called as CAN in dented condition *The cost involved in this process is huge

Preventive measures:

*Transportation phases can be reduced by proper planning

*If at all, due to force majeure; it is necessary to prolong the storage,
adequate precautions as per suppliers instructions should be met.
*proper handling and inspection must be carried out under instructions of
trained and skilled supervisors.
*Transportation should be carried out by trained skilled drivers

Tower section formally called as CAN in De-dented condition

Loss to the Machine Head / Nacelle during handling or
loading/ unloading

Storage loss – Load of the components Cracks developed on the body base of Handling losses – resulted due to lack of
inside is not distributed properly due to the Nacelle – Heavy weight inside, base trained drivers, rigors and handling
inadequate storage pad in not properly compacted – Grounded supervisor
& cracked

There is need to have special provision for the storage of the heavy components like Machine Head. The overall load of a Machine head
with internal accessories is ~ 57 MT; hence special care should be taken considering:

1. Location of the storage

2. Evenness of the base for evenly distribution of the Load
3. Suitable compact pad with wooden cradle are suggested for the proper storage
4. For handling issues; trained crane operator and rigor should carry out the loading process under supervision of handling person
5. Standard MUST be followed as instructed by Supplier
Don’t take Burglars lightly in the erection zone , it might cost you
much higher then ever expected – Below cases are the burglary of the
cables from the Machine Head:

Nacelle contain a cable assembly consist of cable rotor, stator, ground cable assembly and control cable harness. These cables are made up
of considerable amount of Copper. Length of these cable very from min 18 Mts. to 95 Mts. Before commissioning these are kept as such as
Bundles in Nacelle. If the nacelle is cut at any point; it can’t be joint as per suppliers standards and has to replace with a new cable only. The
cost for replacement of each cable assembly is ~ 15 Lakhs.

The burglars are so wise & expert that they only cut the cables with Copper in it and leave the rest. Even though the area is secured by the
security patrolling every 3-4 hrs. They are succeeded in many cases.

The embarrassing situation is local police authorities sometimes don’t even entertain to lodge the FIR for such cases.
ACCIDENTS BOUND TO OCCUR

fire

fall
bend
 Catastrophic Risks

EARTHQUAKE
FLOOD TORNADO

TYPHOON
LIGHTNING STORM
STORM
 FIRE DAMAGE TO WTG

Nacelle Transformer

Blade Tower
 FIRE DAMAGE TO WTG

Fire damage to Windmill due to sudden spark/overheating in the Control Cable combined with
the presence of flammable/combustible material in its vicinity.
 FIRE DAMAGE TO WTG TRANSFORMER

Due to short circuit in transformer cable, fire has originated leading to the damage of Transformer.
Air Circuit Breaker was also flashed due to voltage surge
 Fire Damage to Cables and SCMB Box
due to Short Circuit

Fire damages at the solar power plant due to short circuit in 4 Sq mm cable which
spread to SCMB and 8 No’s of 1C*185 Sq mm DC cables
Wind Hedging
 Wind Risk Solutions

Wind Variability is reflected in varying generation of Wind Farm. But actual generation is
also impacted by other factors.

Lack of Win Cover works by creating a Load Factor Index which reflects Generation Potential on
account of Wind variability alone.

Index can be created using MERRA Data at Grind Point nearest to Wind Farm Location OR
from Actual Anemometer Wind Speed measurement (much better proxy)

But using Anemometer data feed to create a live Index has several challenges such as
transmissions errors, missing data, stuck data, outlier data etc. Our partners, Meteo Protect have
developed a proprietary methodology to tackle such issues and create a dependable index
 Data Transmission for Custom Index

Turbines

OEM Server OEM OPC

OEM SCADA IPP Access Meteoprotect

Access

Our suggested approach is that a Large IPP should first seek to created indexes for at least 5-6 wind
farms, understand how they behave vis-à-vis actual generation and thereby develop comfort on the
index before exploring any hedging alternatives
 Wind Risk Solutions – Hedging Strategies

OPTION /
SWAP INSURANC COLLAR
E
Reduce
downside
Eliminate Retain full upside protection cost
weather risk potential by partially
sharing some of
upside potential

LIMITED
NO
PROTECT UPSIDE
DOWNSIDE,
DOWNSIDE LIMITED
NO UPSIDE
DOWNSIDE

To be decided after Index development and gaining trust in their effectiveness

SOLAR POWER
Introduction

Energy from sun is abundant and the sun will continue to shine for
billions of years to come. While the solar energy is inexhaustible and
renewable, its irradiance is environment-friendly. The solar power
system does not emit toxic gases, which are environmentally damaging.
In addition, silicon, the raw material in making solar cells, is the second
most abundant element in the earth’s crust. Since the solar industry has
been developing and the technology is maturing, the PV power systems
are efficient for both commercial and residential use. The price of PV
systems is also more affordable now due to recent price cuts. The
components needed to build a solar farm are widely available thanks to
the expansion of manufacturing capacity. Delivery bottlenecks for solar
modules or inverters have become quite rare.
PV power plants and their components

Depending on the power system’s connection to the electricity grid, different components are integrated in a PV system. In
general, any solar power systems include PV modules, inverters, battery system, wiring, and the associating construction
materials.

1.      In an off-grid system, additional components include battery banks, a charge controller, an optional backup generator, and
an optional inverter. While in the off-grid hybrid system, other renewable energy generators such as the wind turbine are added
in addition to the components in the off-grid system.  

2.      In a grid-tie system, additional components include a solar production meter, a switching unit, an export/import meter, an
inverter, optional battery banks and the associating charge controller.

• These convert solar radiation directly into electricity through the photovoltaic effect in a silent and clean
process that requires no moving parts. The output from a solar PV cell is direct current (DC) electricity.
A PV power plant contains many cells connected together in modules and many modules connected
Solar PV together in strings to produce the required DC power output.
modules

• These allow PV modules to be securely attached to the ground at a fixed tilt angle, or on sun-tracking
frames. The tracking systems tilt the modules as per the angle of the sun to obtain maximum
Module mounting performance. Power yields can be increased by up to 35 percent when the solar modules are adjusted.
(or tracking) This applies, however, only to regions with a high rate of direct sun irradiation
systems
 • These are required to convert the DC electricity to alternating current (AC) for connection to the
utility grid. Many modules in series strings and parallel strings are connected to the inverters.
Inverters

• The output from the inverters generally requires a further step-up in voltage to reach the AC grid
voltage level. The step-up transformer takes the output from the inverters to the required grid
voltage (for example 25 kV, 33 kV, 38 kV, 110 kV depending on the grid connection point and
Step-up requirements).
transformers

• This is where the electricity is exported into the grid network. The substation will also have the
required grid interface switchgear such as circuit breakers and disconnects for protection and
The grid isolation of the PV power plant as well as generation and supply metering equipment.
connection
interface
 Flow chart indicating components

The International Electro-technical Commission (IEC) issues internationally accepted standards for PV modules. PV modules will
typically be tested for durability and reliability according to these standards. Standards IEC 61215 (for crystalline silicon modules)
and IEC 61646 (for thin film modules) include tests for thermal cycling, humidity and freezing, mechanical stress and twist, hail
resistance and performance under some fixed test conditions, including standard testing conditions.
Table below summarizes few major PV quality standards. These are an accepted quality mark and indicate that the
modules can safely withstand extended use. However, they say very little about the performance of the module
under field conditions of varying irradiance and temperature experienced at a specific site location.

Test Description Comment

IEC 61215 Crystalline silicon terrestrial photovoltaic (PV) The standard certification uses a 2,400 Pa pressure. Modules in
modules – Design qualification and type approval. heavy snow locations may be tested under more stringent 5,400
Pa conditions.

IEC 61646 Thin-film terrestrial photovoltaic (PV) modules –
Design qualification and type approval.
EN/IEC 61730 PV module safety qualification.
Very similar to the IEC 61215 certification, but an additional test
specifically considers the additional degradation of thin film
modules.
1). Safety Class 0 – Restricted access applications.
2). Safety Class II – General applications.
3). Safety Class III – Low voltage applications.

IEC 61701 Resistance to salt mist and corrosion Required for modules being installed near the coast or for
maritime applications.

Apart from the modules, make and models of the equipment namely inverters and transformers also helps us to
understand that the equipment is proven and less prone to breakdowns. Additionally they help us estimate the
approximate time to reinstate in case of loss.
 
Layout Design considerations
 
 A solar plant of one Megawatt would require an area of about 4.5 - 5 acres of land
for a crystalline technology modules and 6.5 to 7 acres of land for thin film
technology modules.
 Ideally, the site should be flat. Such topography makes installation simpler, and
reduces the cost of technical modifications required to adjust for undulations in the
ground. A geotechnical survey of the site is recommended prior to final selection. The
purpose is to assess the ground conditions in order to take the correct design
approach, and to ensure that the mounting structures will have adequate foundations.
 The mounting structure must have undergone extensive testing to ensure the designs
meet or exceed the load conditions experienced at the site, allow the desired tilt angle
to be achieved within a few degrees and Allow for thermal expansion, using expansion
joints where necessary in long sections, so that modules do not become unduly
stressed.
 The level of the geotechnical survey required will depend on the foundation design that is envisaged.
 The distance between array of panels should be designed in such a way that the there is sufficient space for maintenance,
vehicular movement and avoid spread of fire in case of any incident.
 In case of any water body adjacent to the plant or a canal passing through the plant, there is always a risk of inundation.
 The layout sloping and design needs to be appropriately considered to divert the water out of the plant and raise the
elevation around the canal to avoid frequent over flow of water from the canal.
 There is a seasonal nala passing though the plant which slowly erodes the soil which exposes the foundations above the ground. In
case of any heavy winds, the possibility of foundation coming of the soil due to partly being exposed may not be ruled out.

In addition to a good solar resource, the local climate should not suffer from extremes of weather that will increase the
risk of damage or downtime. Weather events that may need consideration include:
 Flooding: May increase the risk of erosion of support structure and foundations, depending on geo-technical
conditions. Especially if the site is after a low lying area or a hill. The slope of the soil has to be considered
appropriately with sufficient water drains.
 High wind speeds: The risk of a high wind event exceeding the plant specifications should be assessed. Locations
with a high risk of damaging wind speeds should be avoided. Fixed systems do not shut down at high wind speeds,
but tracking systems must shut down in safe mode when speeds of 16-20 m/s are exceeded.
 
Sufficient spacing provided for vehicular movement Depiction of good layout spacing between arrays
Construction

Typical issues that arise but not limited during the construction of a PV project include:
 Foundations not being suited to ground conditions. (Will effect for Extended maintenance cover)
 Discovery of hazardous / contaminated substances during excavation.
 Incorrect orientation of modules.
 Insufficient cross-bracing on mounting structures.
 Incorrect use of torque wrenches.
 Damaging cables during construction / installation.
 Delayed grid connection.
 Access / construction constrained by weather.
 Insufficient clearance between rows for vehicle access.
Apart from the above the challenges, climatic conditions and
topography of the site plays a major role. High wind speeds,
inundation damages are huge during construction and operation.
The site is to be prepared with proper slopes and water drains
Natural drains provided between the panels to divert water in case of heavy rains.
while execution.
 
Storage of the equipment also needs to be properly done. The modules (which cost around 50% of the project) are basically
packed in carton boxes which in case of fire are easy to spread and destroy the entire lot. The inverter panels (being
electrical and electronic) are to be stored at a slightly higher elevation and must be kept protected from water damage.
  
Commissioning

Commissioning should prove three main criteria:

 The power plant is structurally and electrically safe.
 The power plant is sufficiently robust (structurally and electrically) to operate
for the specified project lifetime.
 The power plant operates as designed and performs as expected.
Commissioning tests are normally split into three groups:
 Visual acceptance tests: These tests take place before any systems are
energized and consist of a detailed visual inspection of all significant aspects
of the plant.
 Pre-connection acceptance test: These include an open circuit voltage test
and short circuit current test. These tests must take place before grid
connection.
 Post-connection acceptance test: Once the plant is connected to the grid,
a DC current test should be carried out. Thereafter, the performance ratio of
the plant is measured and compared with the value stated in the contract.
 
It is fundamentally important to select a suitably experienced and capable construction contractor. Ideally, a contractor with
demonstrable experience of similar projects should be selected. In any case, potential contractors’ proposed approach to quality
management should be thoroughly scrutinized during the contractor selection process.
Operations and Maintenance
Compared to most other power generating technologies, PV plants have low maintenance and
servicing requirements. However, suitable maintenance of a PV plant is essential to optimize energy
yield and maximize the life of the system.
Maintenance consists of:
Scheduled or preventative maintenance: planned in advance and aimed to prevent faults from
occurring, as well as to keep the plant operating at its optimum level. Scheduled maintenance typically
includes:

 Routine balance of plant

 Module cleaning  Inverter servicing
servicing / inspection
 Checking module connection  Inspecting mechanical
 Checking oil quality in
integrity integrity of mounting
transformers
 Checking junction / string structures
 Checking the resistivity of the
combiner boxes  Vegetation control
soil at earth pits and
 Thermo-graphic detection of  Check for proper cable
functionality of the lightening
faults dressing below the panels
protection
Unscheduled maintenance: Carried out in response to failures. Common unscheduled maintenance
requirements include:

   Tightening cable connections that have loosened.

 Replacing blown fuses.
 Repairing lightning damage.
 Repairing equipment damaged by intruders or during
module cleaning.
 Rectifying supervisory control and data acquisition
(SCADA) faults.
 Repairing mounting structure faults.
 Rectifying tracking system faults.

In general, the O&M activities for a solar PV power plant are less demanding than those related to other forms of
electricity generation. This is mainly due to the fact that there are no moving parts in a solar PV system (unless it is a
tracking system). However, maintenance is still an important factor in maximizing both the performance and lifetime of
the plant components. All the maintenance works are done with proper work permit systems in place.
 Site Security
PV power plants represent a large financial investment. The modules are not only valuable but also portable.
Efforts should be made to reduce the risk of theft and tampering.
Such efforts include:
   Proper Boundary Wall
 Watch towers at critical
locations.
 CCTV monitoring

Special considerations for a roof top solar plant

The rooftop solar is not preferred and additional details are always required as the roof on which the solar plant is existing
or erected plays a critical role equal to that of NATCAT and proven nature of equipment. The normal weight of a solar panel
would range between 10-25Kg apart from supporting clamps/frame depending upon the capacity and type of modules.
The area it would be spread across would differ.
Buildings and other structures, including all components, are designed to safely support all loads that reasonably may be
applied during the life of that structure. The addition of solar installations on a new or existing structure must not
compromise the structure‘s safety for the duration of the structure. Any fault in estimation of the structural strength will
collapse the entire structure affecting solar installation and building. This possible both during project and operation phase.
Loss Photographs

Picture depicting the intensity of the flame when solar

Picture depicting the damage during storm or rain
panel (thin flame) is on fire
Fire Damage to Cables and SCMB Box due to Short
Circuit

Fire damages at the solar power plant due to short circuit in 4 Sq mm cable which spread to
SCMB and 8 No’s of 1C*185 Sq mm DC cables
 SOLAR PANEL DAMAGE DUE TO STORM

Storm damage to 32 modules of Solar

photovoltaic power project

From the picture it is noted that the

Solar plant are installed at a height.
Hence the scope of flood damages
reduced in this case.
 MAJOR SOLAR CLAIMS

Damaged 15MW solar panel after a storm at Nangla village in

Gales damage world’s largest solar park
Mansa
Contact:

Ravi Prakash Javvaji

Mob: +91-9167493358
Email: raviprakash.j@unisoninsurance.net 64