related to hundreds of
businesses and industries with
Best’s Underwriting Guide
and Best’s Loss Control Manual.
There is no better way to spot hazards than with the nearly 600 detailed reports in
A.M. Best’s risk assessment databases.
•;Best’s Underwriting Guide describes each business’s unique risks from
an underwriter’s point of view.
•;Best’s Loss Control Manual’s convenient checklists allow for easy onsite
Both offer the kind of meticulous research that saves you time, effort and costs.
Browse available reports, see what’s new, watch informative videos and more at
Act now – order both databases and get one at a 15% reduced price!
Call (800) 424-2378 or email email@example.com today.
seeking. The storage company becomes,
in effect, just another generator. It has
its own [power purchase agreement]
and its own interconnect.”
Another trend is co-location, with
wind and solar, as well as grid-storage
or auxiliary generation, on the same
“Investors like it because it boosts
internal rates of return on the equity
side,” said Sharma. “But while it
increases revenue, it also increases
exposure. … You may have a $400
million wind farm, plus a $150 million
solar array on the same substation.”
In the beginning, wind turbines did
not generate much power, explained
Rob Battenfield, senior vice president
and head of downstream at JLT
or private investors have made use of
the credits, the big utilities are likely to
provide a ready secondary market for
the builders to recoup their capital.
That structure also affects
insurance. More PPAs mandate grid
storage for intermittent generators
such as wind and solar. State of the
art for such storage is lithium-ion
batteries, which have been prone to
fires if damaged or if they malfunction.
“Grid storage is getting larger,”
said Battenfield. “If you have variable
generation you need to balance that.
Most underwriters insure generation
and storage together. Project leaders
may need to have that because of nonrecourse debt financing.
“On the other side, insurers may be
syndicating the battery risk, but to the
insured it is all together.”
There has also been a mechanical
and maintenance evolution along
the way. “The early-generation short
turbines were throwing gears all the
time,” said Battenfield.
But now, he said, with fewer
manufacturers in play, “the blades,
Repair costs are also dropping, said
“An out-of-warranty blade set
replacement can cost $300,000. But
if it is repairable by a third party, it
could cost as little as $30,000 to have a
specialist in fiberglass do it in a few days.”
As that approach becomes more
prevalent, business interruption (BI)
coverage comes to the fore. Battenfield
stressed that it is important for owners
to understand their PPA obligations, as
well as BI triggers and waiting periods.
“The BI challenge can be bigger
than the property loss,” said Battenfield.
“It is important that coverage
dovetails into the operator’s contractual
GREGORY DL MORRIS is a New York-based
journalist with a specialty in energy. He can
be reached at firstname.lastname@example.org.
“As turbines developed, they got
higher and higher, with bigger blades.
They became more economically
viable. There are still subsidies, and
at present those subsidies drive the
For example, some non-tax paying
utilities are not eligible for the tax
credits, so they don’t invest in new wind
power. But once smaller companies