Fire Risks in Onshore Wind Energy: A Concern for Insurers

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As we are all witnessing, the volatility of the wholesale energy price market is having a significant impact to the value of business interruption related energy losses.

Accordingly, it is more important than ever to understand not just the common causes of energy losses, but how these can be avoided and mitigated. In this article, we look specifically at fire risks to onshore wind turbines.

Onshore wind turbines are a valuable source of renewable energy, but they also pose a risk of fire due to the materials and equipment used, as well as their location and operation. These risks can have serious consequences, including damage to the turbine itself, loss of revenue, and potential harm to workers and the surrounding environment.

One of the main causes of fire in onshore wind turbines is electrical failure. These failures can be caused by a variety of factors, including lightning strikes, power surges, and wear and tear on electrical components. The high-voltage electrical systems used in wind turbines, combined with the flammable materials found in the nacelle (the compartment at the top of the turbine that houses the generator and other electrical components), can create a significant fire hazard.

Another potential cause of fire in onshore wind turbines is mechanical failure. The moving parts of a wind turbine, such as the gearbox and bearings, can generate a significant amount of heat and friction, which can lead to overheating and failure. These failures can also result in a fire if flammable lubricants or hydraulic fluids are present.

In addition to electrical and mechanical failure, onshore wind turbines are also at risk of fire due to external factors, such as vandalism, accidents, and wildland fires. Vandalism, such as the deliberate destruction of electrical components, can create a serious fire hazard, as can accidents such as vehicle collisions or falling objects. Wildland fires, which are fires that occur in natural areas such as forests or grasslands, can also pose a risk to onshore wind turbines if they occur in close proximity to the turbines.

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Prior to construction, there are several steps which can be taken to reduce the rate of fire related losses. Utilising a robust design is essential for reducing the risk of failure which could trigger a fire. A well-designed wind turbine is less likely to fail, so it is important to carefully consider the design of the turbine and associated mechanisms.

Using high-quality components and materials can reduce the likelihood of fires due to faults associated with wear and tear or faulty parts. This includes ensuring components are selected which are designed to withstand the stresses of wind turbine operation, such as high winds and exposure to the elements.

In addition, thorough testing during the development and manufacturing process can help identify potential problems before the turbine is deployed. This includes testing the turbine's components and systems under simulated operating conditions to ensure they can withstand the stresses of real-world operation, highlighting any issues before they trigger a fire.

Once operational, to mitigate the risk of fire in active onshore wind turbines, it is important for the operators and providers to take a proactive approach. This can include conducting regular inspections and maintenance to identify and address potential issues, implementing safety measures such as fire suppression systems and emergency shutdown procedures, and ensuring that workers are properly trained in fire prevention and response.

Overall, the risk of fire in onshore wind turbines is a significant concern for the insurance industry. By taking steps to identify and mitigate these risks, Insured's and Insurers can help ensure the safety and reliability of these valuable renewable energy resources.

RHP are a trusted partner of a number of energy firms and have significant experience in onshore renewable losses, specifically with wind turbine failures and associated business interruption losses.