IMIA WORKING GROUP PAPER WGP 70 (11) · 2019. 10. 28. · IMIA Working Group Paper WGP 70 (11) 2...

1IMIA Working Group Paper WGP 70 (11)

IMIA WORKING GROUP PAPER WGP 70 (11)44th ANNUAL CONFERENCE - AMSTERDAM 2011

CONSTRUCTION AND OPERATIONAL COVERS FOR PHOTOVOLTAIC PARKS


IMIA WGP 70 (11) Construction and operational coversfor photovoltaic parks• Topics:

- Recent developments - Construction / Operational risks / losses- Standard covers- Special Extensions

• Cover for annual radiation• Political risks• Performance guarantees of panels

• Chairman: Stephan Lämmle (MRe)

• Current Members: - Karl Christian Hertenberger (HDI)- Friedrich Scholz (AXA)- Steve Kelly (RSA)- Peter Königsberger (Uniqa)- Khurram Khan (EFU General)- Olivier Hautfeuille (SCOR)

• IMIA EC Sponsor: Utz Groetschel

• High design development frequency• Different performance levels• Investor seek cover to “protect”

return on investment• Only short term loss experience


Contents

Introduction

Agenda of IMIA Paper

Abstracts of Chapters

Conclusion


Contents

Introduction



Conclusion


Introduction

Authors

Scope of Paper

News


IntroductionAuthors

Chairman: Stephan Lämmle, Munich Re

Working Karl-Christian Hertenberger, HDI-Gerling Group members: Friedrich Scholz, AXA Cologne

Steve Kelly, RSAPeter Königsberger, UNIQA Vienna Khurram Ali Khan, EFU (temp.)OlivierHautefeuille, SCORManfred Schäfer, HSB EngineeringRobert Pfenninger, Zürich Global Corp.

Co-Authors: Sven Müller, HDI-Gerling Rainer Ellinghaus, AXA CologneMichael McBride, Munich Re AmericaBernhard Müller, Munich Re Blair Arnot, RSA

Sponsor: Utz Groetschel, IMIA


IntroductionScope of Paper / News

Background• PV is vast topic• Ample information available (Wikipedia, WebPages, GdV, Associations, Literature, …)• Insurance statistics are scarce

Agreement• Large PV parks with power output excess of 1 MWp, ground mounted• Present relevant and valuable issues to Underwriters “from sun to money”

News• All sections of the paper contain highlighting tables for

UW recommendations (Quick Check)• List of references / sources used • GDV set up an internet based platform for WG• IMIA set up an internet based platform for future papers

Meetings• Kick-Off in Berlin, 11.2010• Telephone Conference, 21.12.2010• Meeting in Munich, 20.01.2011


IntroductionScope of Paper / News – IMIA set up an internet based platform for future papers


Contents

Introduction



Conclusion



This IMIA WG paper concentrates on insurance relevant aspects for construction and operation of large scale photovoltaic parks for industrial/commercial generation of electricity. In essence these are:

Pellworm solar power plant, Germany - © Creative Commons

I – TechnologyII – PV Market and TrendsIII – Insurance AspectsIV – Operating ExperienceV - Insurance Statistics


I – Technology

1.1 Photovoltaic Cells and Panels1.2 Performance/Yields1.3 Efficiency1.4 Types of PV collectors1.5 Auxiliary Systems1.6 Testing and safety standards1.7 Inverter1.8 Degradation and Common Failure Points1.9 Installation Types1.10 Assembly Systems and

Ground Mounted PV1.11 Lightning and Overvoltage1.12 Fire Fighting Principles1.13 R & D activities1.14 Underwriting Recommendations


I – TechnologyUseful Hints and Information

Degradation (Performance loss due to aging) and Common Failure Points

Contamination of the silicon with iron or oxygen atoms

Boron Contamination: Ethylene vinyl acetate film (EVA) - Studies suggest this most common encapsulation material may cause degradation due to the effects of the decomposition products, especially acetic acid, on the metallic cell connectors, the PV cells and the polymer itself. The effects of agricultural emissions such as dust and ammonia on panels and inverters may also be a cause.

Failure of edge and back sealing

Penetrating moisture corrodes cells and connectors causing failure.

Hot SpotsHot spots are formed when cells become covered to a lesser or greater extent. The cell then becomes a consumer instead of generator, there is a voltage drop due to the resistance and it becomes hot due to current flows.

Delamination Power losses of up to 43.6% have been measured as a result of delamination

Physical agingPhysical aging covers primarily such effects as the absorption and release of low-molecular constituents, after-crystallisation, re-orientation of molecular chains and the relief of internal stresses formed during processing.

Chemical agingChemical aging is attributable to oxygen or aggressive chemicals and these usually result in molecular chain splitting. The most frequent cause of chemical aging is oxidation.

Arcing due to Contact Failures

While voltage in a PV-circuit is very low, the electrical current may become considerable high. A sudden interruption of such a strong current may create an electric arc, which in contrast to arcs in AC circuits hardly extinguishes itself. Ongoing arcs create extremely high temperatures leading to ignition and finally to a fire incident.


Testing and Safety StandardsPanel certification is desirable, but still not a must. Various international testing labs have testing and certification standards. In Germany corresponding certificates are issued by TÜV Rheinland, VDE Prüf- und Zertifizierungsinstitut and Gütegemeinschaft Solarenergieanlagen e. V.

Basic standards, as well as standards for PV panel testing, includeIEC 61215:2005 Terrestrial Crystalline Silicon PV PanelsIEC 61646:2008 Terrestrial Thin-Film PV PanelsIEC 61730:2004 PV Panels - Safety Qualifications Parts 1 and 2IEC 62108:2007 Concentrator PV (CPV) - Panels

For an index of all certified panels please see the web link of the European Commission: http://re.jrc.ec.europa.eu/solarec/index.htm

Hail testHail impact is included in panel design testing.In Germany ice balls with a diameter of 25 mm are shot at 11 impact points at a speed of 23 m/s in compliance with IEC requirements. In Great Britain the hail test is carried out with steel bullets of 40 mm diameter.

b) Special Fire Fighting Recommendations for PV Plants


a) Standards / Certificates / Links


Testing and Safety StandardsPanel certification is desirable, but still not a must. Various international testing labs have testing and certification standards. In Germany corresponding certificates are issued by TÜV Rheinland, VDE Prüf- und Zertifizierungsinstitut and Gütegemeinschaft Solarenergieanlagen e. V.

Basic standards, as well as standards for PV panel testing, includeIEC 61215:2005 Terrestrial Crystalline Silicon PV PanelsIEC 61646:2008 Terrestrial Thin-Film PV PanelsIEC 61730:2004 PV Panels - Safety Qualifications Parts 1 and 2IEC 62108:2007 Concentrator PV (CPV) - Panels

For an index of all certified panels please see the web link of the European Commission: http://re.jrc.ec.europa.eu/solarec/index.htm

Hail testHail impact is included in panel design testing. In Germany ice balls with a diameter of 25 mm are shot at 11 impact points at a speed of 23 m/s in compliance with IEC requirements. In Great Britain the hail test is carried out with steel bullets of 40 mm diameter.

b) Special Fire Fighting Recommendations for PV Plants


a) Standards / Certificates / Links


II – PV Market and Trends

2.1 Manufacturers

2.2 Owners & Operators

2.3 Benefitting Systems

2.4 Future / Trends

2.5 Underwriting Recommendations


II – PV Market and TrendsManufacturers, Operators, Plant Sizes

Region 2007 2008MW % MW %

China 1,200.6 28.1 2,589.0 32.7Germany 875.6 20.5 1,460.6 18.5Japan 932.0 21.8 1,269.0 16.0Taiwan 461.6 10.8 919.5 11.6North America 273.1 6.4 431.5 5.5India 64.2 1.5 87.2 1.1Australia 35.4 0.8 40.0 0.5Africa & Middle East 1.0 0.0 14,0 0.2Rest of Europe 295.1 6.9 560.0 7.1Rest of Asia 140.1 3.3 539.0 6.8

a) Regional manufacturing levels for 2007 and 2008

b) Estimated installed capacityCountry cumulative installed capacity [MW]

2008 2009 2010Australia 105 184 504Austria 32 53 103Canada 33 95 200Czech Republic 65 463 1,953China 150 373 893France 180 430 1,025Germany 6,000 9,845 17,193Great Britain 23 30 66Greece 20 56 206India 102Italy 458 1,181 3,494Japan 2,144 2,627 3,622Portugal 68 102 130Spain 3,463 3,523 3,784South Korea 358 442 655USA 1,169 1,642 2,528Total of above 14,268 21,046 36,458

Source: IEA; EPIA; Munich RE;

Source: Photon


II – PV Market and TrendsManufacturers, Operators, Plant Sizes

Largest PV Power Plants in the world by 2010

Location Description Power (Maximum) Constructed

Canada, Sarnia Sarnia PV power plant 97 MW 2009-2010

Italy, Montalto di Castro

Montalto di Castro PV power plant 84.2 MW 2009-2010

Germany, Finsterwalde

Solarpark Finsterwalde I,II,III 80.7 MW 2009-2010

Italy, Rovigo Rovigo PV power plant 70 MW 2010

Spain, Olmedilla

Parque FotovoltaicoOlmedilla de Alarcón 60 MW 2008

Germany, Straßkirchen Solarpark Straßkirchen 54 MW 2009

Germany, Turnow-Preilack Solarpark Lieberose 53 MW 2009

Spain, Puertollano

Parque Fotovoltaico Puertollano 50 MW 2008

USA, Boulder City, NV

Copper Mountain Solar Facility 48 MW 2010

Portugal, Moura

Moura photovoltaic power plant 46 MW 2008

In the USA, there are currently five PV power plant projects each with a peak capacity of over 200 MW planned to be completed between 2011 and 2015

Source: www.pvresources.com/en/top50pv.php


(Enhanced) Feed-In Tariff an explicit monetary reward is provided for producing PV electricity; paid (usually by the electricity utility) at a somewhat higher than retail market rate

Capital subsidies financial subsidies that directly offset up-front, specific equipment or total installed PV system cost

Green electricity schemes allows customers to purchase green electricity based on renewable energy from the electricity utility, usually at a premium price

PV-specific green electricity schemes

allows customers to purchase green electricity based on PV electricity from the electricity utility, usually at a premium price

Renewable portfolio standards (RPS)

a mandated renewable generation ratio that the electricity utility (often the electricity retailer) must meet (usually characterized by a broad, least-cost approach favouring hydro, wind and biomass)

PV requirement in RPS a mandated requirement that a portion of the RPS be met by PV electricity supplies (often called a set-aside)

Investment funds for PV share offerings in private PV investment funds that focus on wealth creation and business success using PV as a vehicle to achieve these ends

Income tax credits allows some or all expenses associated with PV installation to be deducted from taxable income streams

Net metering in effect the system owner receives retail value for any excess electricity fed into the grid, as recorded by a bi-directional electricity meter and netted over the billing period

Net billing the electricity taken from the grid and the electricity fed into the grid are tracked separately, the electricity fed into the grid is valued at a given price

Commercial bank activities includes preferential home mortgage terms for houses including PV systems and preferential green loans for the installation of PV systems

Electricity utility activities includes ‘green power’ schemes allowing customers to purchase green electricity, large-scale utility PV plants, various PV ownership and financing options with select customers and PV electricity power purchase models

Sustainable building requirements

includes requirements for reducing energy usage on new residential/commercial buildings (and at times, properties for sale). PV may be one option for meeting these mandates or it may be directly mandated

II – PV Market and TrendsBenefitting Systems

PV support mechnisms in IEA PVPS countries

Source: International Energy Agency Photovoltaic Power System Programme IEA-PVPS T1- 19:2010


III – Insurance Aspects

3.1 Generic Risks during all phases of a PV project

3.2 Natural Catastrophes

3.3 Theft / vandalism

3.4 National (Re-) Insurance Solutions in respect of Terror Risks and Natural Catastrophes

3.5 Construction & Financial Consequential Losses

3.6 Operation & Financial Consequential Losses (BI / MLOP)

3.7 Other / Special Covers


3.1 Generic Risks during all phases of a PV project

3.3 Theft / vandalism3.4 National (Re-) Insurance Solutions in respect of Terror Risks

and Natural Catastrophes



III – Insurance Aspects

Useful Hints and Information⇒ Structured Risk Overviews in Table Form

⇒ Special PV related aspects

Definition: Global Irradiation Definition: Performance Ratio

“Lack of Sun” / Lack of irradiation Cover for availability and performance

Cover for claims arising outside statutory warranty Cover for Carbon Risks


III – Insurance AspectsSpecial PV related aspects

Example

⇒ “Lack of Sun” / Lack of irradiation

Within a 25 year period the annual irradiation can deviate from the mean value in exceptional years. For Germany this deviation can amount to as much as 20%,

for southern Spain it can be in the order of 10%.

• Investors in solar parks have to make strict business plans for their financiers.

• A significant variation between the forecasted output and the actual output is undesirable.

• The global radiation is directly linked to the output of the solar park and due to a shortfall in global radiation the cash flow of the solar park is affected.

• Lack of Sun cover protects the cash flow via a global radiation trigger and therefore reduces the impact of global radiation on the turnover, giving more certainty to investor and financier.


III – Insurance AspectsSpecial PV related aspects

Example

⇒ Cover for claims arising outside statutory warranty• Generally, manufacturers of photovoltaic modules guarantee a minimum

performance of 90% in the first ten years and 80% in the next ten.• Thus, under these performance guarantees, they assume 20 years of

liability for each and every year of production.• Accounting standards demand to establish reserves for complaints in

connection with their performance guarantees.• Main risk for manufacturers: defective modules and an unexpected

number of complaints => Potential claims can accumulate into huge sums=> A high number of complaints and low reserves can result in financial

imbalances • Transferring entrepreneurial risks to an insurer stabilises the solar

module manufacturers’ bankability, liquidity, sales and yield planning.


IV – Operating Experience

4.1 Costs

4.2 Operation Experience Example

4.3 Claims Examples


V – Insurance Statistics

Worldwide premium for PV: approx. € 100 Mio (2008) / EUR 160 Mio (2009) / 230 Mio (2010)

Prem

ium

s

Recalculation, Evaluation and Cross-check

Cla

ims


Lessons learned

IF you use a common data platform, it helps for cross-information and data collection, but start early

Much more information available than can be compressed into 40 pages.In case of interest, contact us.

IMIA collecting Insurance & Claims Statistics on Renewable Energies separately would be of great value


Action speaks louder than words …

Commissioning Date:17.06.2011

Nos. of PV Modules: 29

Power Output: 6,82 kWp


Thank you for your attention

… and thanks a lot to each and every member of the WG team for having accomplished a tremendous work in a splendid team spirit

IMIA WORKING GROUP PAPER WGP 70 (11) · 2019. 10. 28. · IMIA Working Group Paper WGP 70 (11) 2...

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Transcript of IMIA WORKING GROUP PAPER WGP 70 (11) · 2019. 10. 28. · IMIA Working Group Paper WGP 70 (11) 2...