Why Wind Energy?
Wind is the fastest growing source of renewable energy. In November of 2015 the United States reached a new milestone in wind power production with a total capacity of 70 gigawatts; enough to power 19 million homes. Growth of the wind energy industry should continue as the technology becomes cheaper and more accessible and the need for clean secure energy sources grows.
Wind benefits have existed for centuries in a variety of different applications. A wind turbine works by converting the kinetic energy of the wind into electrical power. The blades of a wind turbine first turn the kinetic energy stored in the wind into rotational energy. Then a generator housed in the nacelle of the wind turbine uses that rotational energy to generate electricity. From there, the electricity is either used on site or fed into the power grid.
The biggest drawback of wind energy is that you cannot produce it on demand. The wind will not always be blowing and if there is no wind or wind moves too fast, the turbines cannot produce power. Topography impacts wind so the location of a farm is extremely important. Installations are often developed in rural and remote areas where the land is cheaper and the wind is not obstructed by man made structures. Unfortunately this means that turbines are often subjected to harsh weather and conditions, which increases the regular wear on turbine parts. Without proper maintenance failure of even small parts can cause thousands or millions of dollars in damages.
Although wind energy technologies are getting cheaper, installing a wind farm or even a small turbine is a capital intensive venture. A wind farm’s exposures and liabilities are complex. An off the shelf insurance package is not sufficient to cover all of the reasonable risks associated with wind energy. Wind installations require a tailored solution specific to the project. Value Insurance Agency, Inc has helpful resources for individuals and business looking for insurance for a wind project. So take advantage of wind benefits today–but safely, of course!
If you need help insuring your wind energy business, contact us to begin setting up your policy today. We can’t wait to hear from you!