The recent storms in Florida have highlighted the challenges alternative energy infrastructure faces when confronted with severe weather.
As solar and wind energy become integral to the shift toward sustainable energy, AssuredPartners' senior vice president and national energy practice leader Trevor Gilstrap emphasized that proactive weather preparedness has become essential for energy companies to protect their investments in renewable assets.
Gilstrap noted that solar farms and wind turbines are particularly vulnerable to natural disasters, including hurricanes, floods, and strong winds. While designed to endure harsh conditions, solar panels can sustain damage from high winds, heavy rain, and airborne debris.
Wind turbines face similar risks, particularly from extreme gusts that put stress on their structural integrity. The costs associated with repairing or replacing damaged equipment can quickly escalate, underscoring the need for energy companies to take comprehensive risk management measures.
According to Gilstrap, assessing vulnerabilities is a critical initial step for companies seeking to strengthen their weather preparedness. This involves evaluating infrastructure, such as solar panels, wind turbines, and storage facilities, for resilience against severe weather conditions commonly encountered in specific regions.
Companies should also consider factors like project proximity to coastal zones, floodplains, or hurricane-prone areas.
Structural enhancements can further bolster resilience. Gilstrap highlighted that investing in advanced mounting systems for solar panels and reinforced foundations for wind turbines may help reduce the severity of potential damage during extreme weather events. Regular monitoring of weather patterns and implementing real-time maintenance checks can help companies identify and address issues proactively.
Additionally, Gilstrap advised aligning emergency plans with local disaster response protocols to streamline recovery efforts in case of severe weather.
Gilstrap also underscored the importance of tailored insurance coverage. As climate-related risks increase, traditional property insurance may fall short of adequately covering the specific risks linked to renewable energy infrastructure.
He suggested that policies designed to address the unique needs of solar, wind, and battery storage assets, including coverage options like contingent business interruption, should be considered to minimize revenue loss during periods of operational downtime.
Planning for weather contingencies is also essential, Gilstrap said. Comprehensive plans should address steps for safely halting operations, securing equipment, and ensuring personnel safety. These strategies should also detail the procedures for resuming energy production as efficiently as possible once the weather event has passed.
Gilstrap pointed out that insurance solutions tailored for climate risks are critical as alternative energy infrastructure expands. Parametric insurance, which provides payouts based on specific weather parameters such as wind speed or hurricane intensity, can offer quicker recovery and help companies maintain operational stability.
Additional flood insurance may also be necessary to protect assets in low-lying or coastal regions that face heightened flood risks. Business interruption insurance can help companies recoup lost income during weather-induced downtime, ensuring financial continuity.
Looking forward, Gilstrap highlighted the ongoing need for energy companies to enhance their resilience against increasingly frequent and severe weather events. He advised that a proactive approach, including structural upgrades, real-time monitoring, and specialized insurance solutions, is crucial for supporting the long-term stability and viability of renewable energy projects.
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