Submarine power cable losses totalling over EUR 350 million in claims

In: Grid
05/01/2017
Insurance specialist Genillard & Co. GmbH of Germany have spent much of 2016 interviewing leading stakeholders within the Offshore wind insurance sector to get their view on what risks the Offshore Wind industry is facing. and in Mandatory introduction of a Code of Conduct for Submarine Cable Installation, and because of the frequency of incidents & accidents related to sea cable laying in the offshore wind power projects it would make sense to have the defined ISO, ICPC & SCIG standards and quality management systems omnipresent in future projects.

Around 4.600 subsea cables have been laid and are serving offshore wind farms in all markets.
There are around 10 declared incidents annually of cable failure, with an average cable downtime of 100 days.

Subsea cable incidents account for between 70 and 80% of the total global cost of offshore wind farm insurance losses, but account for only around 10% of the overall cost of an offshore wind project. 90 subsea cable losses occurred in the past 7 years, totalling over EUR 350 million in incurred claims.

“The frequency and growing severity of incidents remain key contributors to construction and operation cost overruns as well as insurance claims.”  

The report pointed out that "The majority of these claims are caused by contractor error. New market entrants often lack the specific expertise to conduct a cable laying process free of incidents, with the cable often handled improperly, e.g. tension levels not observed or heeded."

For further information or to obtain a copy of the report contact info@genillard-co.de for more information or link to http://www.4coffshore.com/windfarms/request.aspx?id=owris

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