Wind-solar hybrid tasks are an useful option to take on the intermittency concerns of standalone wind and solar power sources and are poised to play an important function as a generation source moving forward.
When integrated, the 2 renewable resource sources optimize electrical power generation, reinforce grid dependability, and enhance land usage.
According to Mercom India Research Study, India has actually a set up hybrid renewable resource capability of 3.6 GW and a pipeline of about 31 GW, consisting of battery storage tasks.
On October 10, 2023, Mercom India hosted a webinar, “Threats and Solutions for Insuring Hybrid Renewable Resource Projects,” that concentrated on barriers in offering insurance coverage for these tasks and efficient threat mitigation methods. You can enjoy the complete webinar here
The panelists were Vipul Shetty, Director of Energy Shift at Howden, Amit Sharma, Vice President– Service Advancement at CleanMax, and Sachin Mansuriya, Lead– Wind Solar Hybrid Projects at 4th Partner Energy
Priya Sanjay, Handling Director, Mercom India, moderated the session.
Project-Specific Threats
Insurance coverage for wind-solar hybrid tasks is to be customized per the task’s attributes, thinking about area, size, and the special threats included. This needs thoroughly examining and handling these threats through suitable insurance protection so stakeholders can protect their financial investments and add to the development of tidy and sustainable energy production.
Speaking on the growing requirement for insurance coverage items to satisfy the needs of wind-solar hybrid tasks, Amit Sharma stated, “In the last 4 to 5 years, the renewables sector has actually progressed, and the development has actually been remarkable in the industrial and commercial (C&I) section. With the growing need for wind-solar hybrid tasks, the requirement for insurance coverage has actually increased. The threats consist of natural catastrophes, devices failure, market variations, and altering regulative landscape. These elements have actually highlighted the requirement for insurance coverage to make the tasks financially feasible for financiers.”
Talking about the threats associated with the smooth operation of wind-solar hybrid tasks, Vipul Shetty stated, “Problems are available in lots of types, and they require to be guaranteed. Designers can have malfunctioning wind turbines and photovoltaic panels, thermal runaway, and wind turbine damage due to natural causes. These threats are likewise appropriate to storage. Then, there are likewise regulative difficulties that prevent the smooth operation of wind-solar hybrid tasks. So, it’s a mix of whatever.”
” When we integrate wind and solar with battery energy storage systems, we are doubling the threat. When we include more OEMs, inspecting the performance history takes a long period of time and ends up being a complicated procedure. However from a total point of view, there’s very little distinction from standalone wind and solar tasks,” Shetty included.
Influence On PPA Rates
Sharing his views on the effect of insurance coverage on the power purchase arrangement rates (PPA) rates, Sharma stated that the effect is lower or comparable to standalone wind or solar tasks.
” It is a product effect and remains in the series of 0.2-0.3%, which concerns 0.2 (~$ 0.002)/ kWh to 0.3 (~$ 0.004)/ kWh. It impacts the PPA rates, however insurance coverage is essential,” Mansuriya stated.
Insurance Coverage Requirements
Discussing the requirements for offering insurance coverage, Vipul Shetty stated that the most essential thing is the OEMs’ performance history.
” The very first thing we check out is the level of proficiency the OEMs have and the kind of innovation they are utilizing. Likewise, we check out the scale of tasks, which has actually increased substantially in the previous couple of years. Another problem is the area of the tasks to determine the probability of natural catastrophes, the frequency of which has actually increased in the current overdue to altering weather condition patterns,” he stated.
Shetty dwelt on the problem of the continuously developing innovation landscape. “We have actually ended up being more qualified to handle the altering technological landscape. We have sustainable engineers to examine the threat and okay to brand-new innovations going into the sustainable sector. It’s very little of an issue for us. It comes down to what level of facilities info is provided to the insurance companies, and it is likewise essential that appropriate info is offered to us.”
Anticipating the insurer to equal technological advancements, Sharma stated insurer require to equal technological improvements in the hybrid section.
” Environment modification is a huge problem now, and they ought to consider this while offering cover for hybrid tasks. Likewise, virtual PPAs are most likely to emerge in the future, and the insurer ought to prepare with brand-new insurance coverage items to deal with this,” he stated.
Customized Solutions
Discussing expectations from insurance coverage suppliers, Sharma stated there was a requirement for custom-made options for different contingencies.
” The insurance coverage suppliers ought to likewise think about supply-chain concerns, which ended up being popular throughout the COVID-19 break out. Likewise, cyber-security is another location that they ought to check out. These are a few of the locations where things can enhance. Logistics is another location for which the insurance coverage suppliers require to supply options,” Sharma stated.
Bringing the insurance company’s point of view to the table, Shetty stated that the insurer are attempting their finest to supply service warranties and brand-new innovation assurances.
” We are likewise enhancing the entire procedure by offering standards to customers. The supply chain problem is certainly an issue for designers, however it isn’t simple to resolve it today. It is a grey location. However on the brighter side, almost 60-70% of renewable resource tasks are now guaranteed. A growing number of insurer are approaching renewables as we carry on the course of energy shift,” Shetty stated.
Rakesh Ranjan is a personnel press reporter at Mercom India. Prior to signing up with Mercom, he operated in lots of functions as an organization reporter, assistant editor, senior material author, and sub-editor with bcfocus.com, CIOReview/Silicon India, Verbinden Interaction, and Bangalore Predisposition. Rakesh holds a Bachelor’s degree in English from Indira Gandhi National Open University (IGNOU). More short articles from Rakesh Ranjan.