Energy companies need to increase their preparedness and resilience as climate disasters get more intense.
Florida’s recent storms have brought attention to the difficulties that alternative energy infrastructure encounters during extreme weather.
Trevor Gilstrap, national energy practice leader and senior vice president at AssuredPartners, highlighted that proactive weather preparedness has become crucial for energy companies to safeguard their investments in renewable assets as solar and wind energy become more and more integrated into the transition to sustainable energy.
Hurricanes, floods, and strong winds are among the natural disasters that solar farms and wind turbines are especially susceptible to, according to Gilstrap. Solar panels can be damaged by strong winds, a lot of rain, and flying debris, even though they are made to withstand tough environments.
Similar concerns apply to wind turbines, especially when severe gusts strain their structural stability. The need for energy businesses to implement thorough risk management systems is highlighted by the rapidly rising expense of replacing or repairing damaged equipment.
A crucial first step for businesses looking to improve their weather preparedness, according to Gilstrap, is evaluating vulnerabilities. This entails assessing the ability of infrastructure—such as wind turbines, solar panels, and storage facilities—to withstand extreme weather that is typical in a given area.
Businesses should also think about things like how close a project is to floodplains, coastal zones, or hurricane-prone locations.
Resilience can be further strengthened by structural improvements. Gilstrap emphasised that the severity of possible damage during extreme weather events may be lessened by investing in strengthened foundations for wind turbines and sophisticated mounting solutions for solar panels. Businesses can detect and resolve problems early by using real-time maintenance checks and routine weather pattern monitoring.
In order to expedite recovery efforts in the event of severe weather, Gilstrap also suggested coordinating emergency preparations with regional disaster response procedures.
Gilstrap further emphasised how crucial customised insurance coverage is. Traditional property insurance might not be sufficient to cover the unique risks associated with renewable energy installations as climate-related concerns rise.
In order to reduce income loss during times of operational downtime, he recommended that insurance that are tailored to the particular requirements of solar, wind, and battery storage assets—such as coverage choices like contingent business interruption—be taken into consideration.
Gilstrap added that weather contingency planning is crucial. Thorough plans should cover how to secure equipment, securely stop activities, and guarantee the safety of staff. The methods for efficiently restarting energy production after the weather event is over should also be covered in these techniques.
Gilstrap noted that as alternative energy infrastructure grows, insurance solutions specifically designed to address climate risks are essential. Companies can recover more quickly and preserve operational stability using parametric insurance, which bases payouts on particular weather criteria like wind speed or hurricane severity.
To safeguard assets in low-lying or coastal areas with elevated flood risks, additional flood insurance might also be required. Businesses can ensure financial continuity by recovering lost revenue during weather-related outages with the use of business interruption insurance.
Gilstrap emphasised that energy firms must continue to improve their ability to withstand more severe and frequent weather occurrences in the future. In order to promote the long-term stability and viability of renewable energy projects, he suggested taking a proactive approach that includes structural renovations, real-time monitoring, and specialised insurance solutions.
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