introduction to solar energy - munich re · image courtesy of doe/nrel ... five largest operating...
TRANSCRIPT
INTRODUCTION TO SOLAR ENERGY
November 1, 2011
Robert Beck Senior Vice President, Engineering Corporate Insurance Partners Munich Reinsurance America, Inc.
Presenters
Michael Roy Principal Engineer Emerging Technologies The Hartford Steam Boiler Inspection & Insurance Company
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Agenda
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Introduction
Solar Power Overview
Insurance Considerations
Questions and Answers
Introduction Alternative Energy – Wind and Solar
Active
Passive
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Solar Radiant/Intensity Map
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Status of Solar Energy
Greater Flexibility Operational - Application
Growing Demand U.S. = more than 50% of world market
Doubled in 2010 (1,000 MW); expected to double in 2011(2,000 MW)*
* Navigant Consulting
Less developed than wind (<1% of U.S. energy....but, great potential
Growing Supply for PV Panels
(China , Taiwan, U.S.)
Falling Prices for PV Panels
($1.50 p/MW Expected to drop 20% in 2011)
Government Incentives (Fed. Tax Credits: 30%
and Use Mandates)
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Financial Incentives Federal
Production Tax Credit (PTC) renewed through 2012
Investment tax credits = 30%
Modified Accelerated Cost Recovery (Tax Deduction)
50% depreciation bonus (tax deduction)
Federal grant programs
Federal loan guarantees
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Financial Incentives State
Renewable Portfolio Standards (RPS)
Renewable Energy Certificates (RECs)
Feed-in-Tariff
Net Metering
State and/or Utility Loan Programs
http://www.dsireusa.org
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SOLAR POWER
Solar Power
Two types of Solar Power
Solar Photovoltaic Solar Thermal
– Hot Water – Electricity
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Solar Photovoltaic Overview
Image Courtesy of DOE/NREL
Fixed vs. Tracking
Rigid vs. Flexible
Direct Coupled vs. Grid Connected
Concentrating, Hybrid, BIPV, Flat Panel
c-Si, CIGS, Thin Films Monocrystalline, Polycrystalline
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Solar Photovoltaic Overview
Cost: from $4,000 to $8,000 per kW installed
Output: 10W/ft² Size: Up to 48MW+ Three Main Classes ‒ Residential ‒ Non-residential ‒ Utility
Source: Unisolar 12
Solar Photovoltaic Components
Inverter (power conditioning unit) - Convert DC electricity to AC Panel mount – keep the panel
oriented towards the sun Combiner boxes –
consolidates strings Storage – store extra energy
(batteries) Disconnects, fuses, and diodes
13 Image Courtesy of DOE/NREL
Solar Photovoltaic Installations
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Solar Photovoltaic Average Size
TIV Values Increasing 100 kW = $550,000
Average Size of Grid-Tied Non-Residential PV Installations
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MWDC / Market Share
All Other States 264 / 12%
Total = 2,153 MWDC
CA 1,022 / 48%
NJ 260 / 12% CO
121 / 6%
AZ 110 / 5%
NV 105 / 5%
NY 56 / 3%
HI 45 / 3%
FL 73 / 3%
PA 55 / 2%
NM 43 / 2%
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Solar Photovoltaic – Top 10 States (All segments)
Thermal Solar Systems & Power Plants
HVAC Collector Systems Use of air or water to transfer heat
Parabolic Trough Systems Most proven & deployed
Solar Power Towers More efficient vs. trough
systems Better energy storage
capability
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Solar Thermal Heating
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Different Collector Types ‒Flat Plate ‒ Integral Collector-Storage (ICS) ‒Evacuated-tube
Active Systems ‒Direct Circulation ‒ Indirect Circulation
Passive Systems
Solar Water Heating Panels Courtesy of DOE/NREL
Solar Thermal Heating
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Application ‒ Low Temperature ‒ Mid-Temperature
Cost ‒ Low Temperature
$10 to $40 per ft² ‒ Mid-Temperature systems
$75 to $120 per ft².
Life Expectancy 15 – 40 years with proper maintenance.
Solar Water Heating Panels Courtesy of DOE/NREL
Concentrated Solar Power (CSP) Configurations
Two primary concentrating solar technologies
Photovoltaic Concentrator Courtesy of DOE/NREL 20
Concentrating Solar Photovoltaic (CPV) Uses mirrors, parabolic dish systems or Fresnel lenses to concentrated sunlight onto a high efficiency PV cell. Concentrating Solar Thermal (CST) Uses mirrors, parabolic dish systems or parabolic trough systems to heat a working fluid which is then used to generate electricity.
Concentrating Solar Thermal (CST)
Sun
Heat Transfer Fluid
Solar Panels
Steam
Pump
Steam Turbine
Generator
Heat Exchanger Condenser
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Similar in operation to a traditional steam turbine power plant such as nuclear, coal or geothermal. There are some exceptions.
Concentrating Solar Thermal Power
Solar One 64 MW Boulder City, NV Completed 2007
Sierra Sun Tower 5 MW Lancaster, CA Completed 2009
Kimberlina 5 MW Bakersfield, CA Completed 2008
Maricopa Solar 2 MW Peoria, AZ Completed Jan 2010
SEGS-9 units 354 MW Mojave Desert, CA Completed 1985-1991
Five Largest Operating – U.S. CST Plants
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INSURANCE CONSIDERATIONS
Type Manufacturer &
model Size (kW output) PD Values
(ACV or RR) Existing or New
Installation
Additional or increase in
hazard
Service & maintenance agreement
Metering and Monitoring agreement
Loss history (serial loss issues for multiple units)
Existing Warranty First Party Coverage
Business Income & Extra Expense
Annual power production
Insurance & Underwriting Considerations Solar-First Party
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New Solar Installations
25 Images Courtesy of DOE/NREL
New Solar Installation
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Pre Survey (remote vs. populated) ‒ New build or retrofit
Geotechnical survey (if ground installation) ‒ Qualified engineering or geologist ‒ Understand recommendations and costs
Consider NAT CAT exposures ‒ Wind (hurricane, tornado, nor'easter) ‒ Flood ‒ Earthquake
Grid tie ‒ Transmission and distribution (T & D) ‒ Power purchase agreements (where is power
going) Match design for local conditions ‒ Ensure qualified design ‒ Sun (irradiation potential)
Image Courtesy of DOE/NREL
New Solar Installation
27 Image Courtesy of DOE/NREL
Who will install? ‒ Owner vs. contractor ‒ Experience and wherewithal ‒ Oversight of works ‒ Proper permitting
Manufacturer ‒ Design risk- reputation and experience ‒ Serial loss ‒ Warranties - manufacturer’s risk ‒ Due diligence pro-forma expectations
Security of site ‒ Pre-plan to ensure safety
Site Preparation and Installation
28 Image Courtesy of International Association of Engineering Insurers
Construction Hazards ‒ Site and surrounding areas ‒ On-site delivery and storage of
component parts, materials and supplies
‒ Vegetation ‒ Security (theft and vandalism) ‒ Natural hazards ‒ Rodents
Period of time to demonstrate performance and complete testing
Acceptance by owner ‒ Consider timing and tax incentives ‒ Pro-forma considerations
Solar Photovoltaic Existing Exposures
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Solar Photovoltaic Common Causes of Property Damage
Image Courtesy Munich Re 30
Impact Damage (Hail, Debris)
Fire Loss Potential
Roof Penetrations
Weather (Snow, Wind, Rain, Lightning)
Theft
Overvoltage
Solar Photovoltaic Property Damage Exposures - Severity
Theft 8%
Deliberate 1%
Fire 26%
Snow Pressure 12%
Overvoltage 14%
Storm 25%
Hail 3%
Misc Damage 11%
Chart Source: Renewable Energies, Survey, German Insurance Association
PV Installation Damage Costs: 2004–2007
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Solar Photovoltaic Property Damage Exposures - Frequency
Theft 2%
Deliberate 3%
Fire 2%
Misc Damage 42%
Snow Pressure 14%
Overvoltage 26%
Storm 9%
Hail 2%
PV Installation Damage Incidents: 2004–2007
Chart Source: Renewable Energies, Survey, German Insurance Association 32
Causes of Loss Snow Pressure
Source: Munich Re 33
Causes of Loss Windstorm
Source: Munich Re 34
Causes of Loss Windstorm
Europe - Windstorm ‘Klaus’ (wind speeds of up to 80 mph) hits PV farm in NE Spain
70% of tracker systems damaged
Basically not caused by PV modules, but by faulty design / bad workmanship of the supporting structure
Picture Source: Munich Re 35
Causes of Loss Fire
Picture Source: Munich Re 36
Causes of Loss Fire
Picture Source: Munich Re 37
Causes of Loss Overvoltage
Picture Source: IMIA 38
Causes of Loss Installation Errors
Ventilation hampered due to insufficient distance >> condensation and corrosion
Wrong placement of screws >> insufficient rigidity
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Solar Photovoltaic Common Casualty Issues
Bodily Injury or Property Damage
Business Interruption
Pure Economic Loss
Misrepresentation
Design E&O/Improper Installation
40 Image Courtesy of DOE/NREL
Solar Photovoltaic Common Equipment Breakdown Exposures
Inverter
Heat Exchanger
Tracking Systems
Pipe Joints
Thermal Cycling
Molten Salt Freeze
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Keys to Reducing Exposure-Summary
Experienced installers
Established manufacturers
No experimental, prototype
New equipment under warranty
Some sort of service agreement, regular inspection
Equipment is visible and accessible
Properly designed for climate (temperature, lightning, wind)
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More Information
Robert Beck [email protected] (609) 275-2172
Michael Roy [email protected] (860) 722-5055
Contact your company’s Munich Re or HSB Client Manager for additional information.
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THANK YOU FOR ATTENDING
© Copyright 2011 Munich Reinsurance America, Inc. All rights reserved. "Munich Re" and the Munich Re logo are internationally protected registered trademarks. The Hartford Steam Boiler name is a mark owned by The Hartford Steam Boiler Inspection and Insurance Company. The material in this presentation is provided for your information only, and is not permitted to be further distributed without the express written permission of Munich Reinsurance America, Inc., Munich Re or Hartford Steam Boiler. This material is not intended to be legal, underwriting, financial, or any other type of professional advice. Examples given are for illustrative purposes only. Each reader should consult an attorney and other appropriate advisors to determine the applicability of any particular contract language to the reader's specific circumstances.