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

Transcription

1 IMIA WORKING GROUP PAPER WGP 70 (11) 44 th ANNUAL CONFERENCE - AMSTERDAM 2011 CONSTRUCTION AND OPERATIONAL COVERS FOR PHOTOVOLTAIC PARKS 1

2 IMIA WGP 70 (11) Construction and operational covers for 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 2

3 Contents Introduction Agenda of IMIA Paper Abstracts of Chapters Conclusion 3

4 Contents Introduction Agenda of IMIA Paper Abstracts of Chapters Conclusion 4

5 Introduction Authors Scope of Paper News 5

6 Introduction Authors Chairman: Working Group members: Co-Authors: Sponsor: Stephan Lämmle, Munich Re Karl-Christian Hertenberger, HDI-Gerling Friedrich Scholz, AXA Cologne Steve Kelly, RSA Peter Königsberger, UNIQA Vienna Khurram Ali Khan, EFU (temp.) OlivierHautefeuille, SCOR Manfred Schäfer, HSB Engineering Robert Pfenninger, Zürich Global Corp. Sven Müller, HDI-Gerling Rainer Ellinghaus, AXA Cologne Michael McBride, Munich Re America Bernhard Müller, Munich Re Blair Arnot, RSA Utz Groetschel, IMIA 6

7 Introduction Scope 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, Telephone Conference, Meeting in Munich,

8 Introduction Scope of Paper / News IMIA set up an internet based platform for future papers 8

9 Contents Introduction Agenda of IMIA Paper Abstracts of Chapters Conclusion 9

10 Agenda of IMIA Paper 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: I II III IV V - Technology PV Market and Trends Insurance Aspects Operating Experience Insurance Statistics Pellworm solar power plant, Germany - Creative Commons 10

11 I Technology 1.1 Photovoltaic Cells and Panels 1.2 Performance/Yields 1.3 Efficiency 1.4 Types of PV collectors 1.5 Auxiliary Systems 1.6 Testing and safety standards 1.7 Inverter 1.8 Degradation and Common Failure Points 1.9 Installation Types 1.10 Assembly Systems and Ground Mounted PV 1.11 Lightning and Overvoltage 1.12 Fire Fighting Principles 1.13 R & D activities 1.14 Underwriting Recommendations 11

12 I Technology Useful Hints and Information Degradation (Performance loss due to aging) and Common Failure Points Contamination of the silicon with iron or oxygen atoms Failure of edge and back sealing Hot Spots Delamination Physical aging Chemical aging Arcing due to Contact Failures 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. Penetrating moisture corrodes cells and connectors causing failure. Hot 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. Power losses of up to 43.6% have been measured as a result of delamination Physical 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 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. 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. 12

13 I Technology Useful Hints and Information a) Standards / Certificates / Links b) Special Fire Fighting Recommendations for PV Plants Testing and Safety Standards Panel 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, include IEC 61215:2005 Terrestrial Crystalline Silicon PV Panels IEC 61646:2008 Terrestrial Thin-Film PV Panels IEC 61730:2004 PV Panels - Safety Qualifications Parts 1 and 2 IEC 62108:2007 Concentrator PV (CPV) - Panels For an index of all certified panels please see the web link of the European Commission: Hail test Hail 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. 13

14 I Technology Useful Hints and Information a) Standards / Certificates / Links b) Special Fire Fighting Recommendations for PV Plants Testing and Safety Standards Panel 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, include IEC 61215:2005 Terrestrial Crystalline Silicon PV Panels IEC 61646:2008 Terrestrial Thin-Film PV Panels IEC 61730:2004 PV Panels - Safety Qualifications Parts 1 and 2 IEC 62108:2007 Concentrator PV (CPV) - Panels For an index of all certified panels please see the web link of the European Commission: Hail test Hail 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. 14

15 II PV Market and Trends 2.1 Manufacturers 2.2 Owners & Operators 2.3 Benefitting Systems 2.4 Future / Trends 2.5 Underwriting Recommendations 15

16 II PV Market and Trends Manufacturers, Operators, Plant Sizes a) Regional manufacturing levels for 2007 and 2008 Region MW % MW % China 1, , Germany , Japan , Taiwan North America India Australia Africa & Middle East ,0 0.2 Rest of Europe Rest of Asia b) Estimated installed capacity Country cumulative installed capacity [MW] Australia Austria Canada Czech Republic ,953 China France ,025 Germany 6,000 9,845 17,193 Great Britain Greece India 102 Italy 458 1,181 3,494 Japan 2,144 2,627 3,622 Portugal Spain 3,463 3,523 3,784 South Korea USA 1,169 1,642 2,528 Total of above 14,268 21,046 36,458 Source: IEA; EPIA; Munich RE; Source: Photon 16

17 II PV Market and Trends Manufacturers, Operators, Plant Sizes Largest PV Power Plants in the world by 2010 Location Canada, Sarnia Italy, Montalto di Castro Germany, Finsterwalde Italy, Rovigo Spain, Olmedilla Germany, Straßkirchen Germany, Turnow-Preilack Spain, Puertollano USA, Boulder City, NV Portugal, Moura Source: Description Power (Maximum) Constructed Sarnia PV power plant 97 MW Montalto di Castro PV power plant Solarpark Finsterwalde I,II,III 84.2 MW MW Rovigo PV power plant 70 MW 2010 Parque Fotovoltaico Olmedilla de Alarcón Solarpark Straßkirchen 60 MW MW 2009 Solarpark Lieberose 53 MW 2009 Parque Fotovoltaico Puertollano Copper Mountain Solar Facility Moura photovoltaic power plant 50 MW MW 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

18 II PV Market and Trends Benefitting Systems PV support mechnisms in IEA PVPS countries (Enhanced) Feed-In Tariff Capital subsidies Green electricity schemes PV-specific green electricity schemes Renewable portfolio standards (RPS) an explicit monetary reward is provided for producing PV electricity; paid (usually by the electricity utility) at a somewhat higher than retail market rate financial subsidies that directly offset up-front, specific equipment or total installed PV system cost allows customers to purchase green electricity based on renewable energy from the electricity utility, usually at a premium price allows customers to purchase green electricity based on PV electricity from the electricity utility, usually at a premium price 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 Investment funds for PV Income tax credits Net metering Net billing Commercial bank activities Electricity utility activities Sustainable building requirements a mandated requirement that a portion of the RPS be met by PV electricity supplies (often called a set-aside) share offerings in private PV investment funds that focus on wealth creation and business success using PV as a vehicle to achieve these ends allows some or all expenses associated with PV installation to be deducted from taxable income streams in effect the system owner receives retail value for any excess electricity fed into the grid, as recorded by a bidirectional electricity meter and netted over the billing period 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 includes preferential home mortgage terms for houses including PV systems and preferential green loans for the installation of PV systems 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 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 Source: International Energy Agency Photovoltaic Power System Programme IEA-PVPS T1-19:

19 III Insurance Aspects 3.1 Generic Risks during all phases of a PV project 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 3.3 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 3.8 Underwriting Recommendations 3.8 Underwriting Recommendations 19

20 III Insurance Aspects Useful Hints and Information Structured Risk Overviews in Table Form Special PV related aspects Definition: Global Irradiation Lack of Sun / Lack of irradiation Cover for claims arising outside statutory warranty Definition: Performance Ratio Cover for availability and performance Cover for Carbon Risks 20

21 III Insurance Aspects Special PV related aspects Example Lack of Sun / Lack of irradiation 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. 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%. 21

22 III Insurance Aspects Special 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. 22

23 IV Operating Experience 4.1 Costs 4.2 Operation Experience Example 4.3 Claims Examples 23

24 V Insurance Statistics Premiums Recalculation, Evaluation and Cross-check Worldwide premium for PV: approx. 100 Mio (2008) / EUR 160 Mio (2009) / 230 Mio (2010) Claims 24

25 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 25

26 Action speaks louder than words Commissioning Date: Nos. of PV Modules: 29 Power Output: 6,82 kwp 26

27 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 27