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NARDAC: Facilitating Optimal Coverage for the Renewable Market

Allen and Joel speak with Jatin Sharma from NARDAC, an insurance broker specializing in complex renewable projects. As a boutique firm, NARDAC aims to bridge knowledge gaps between insurance capital providers and renewable companies to facilitate optimal coverage terms amidst the market’s rapid evolution and emerging risks. Visit https://nardac.com/ for more!

Sign up now for Uptime Tech News, our weekly email update on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on Facebook, YouTube, Twitter, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary Barnes’ YouTube channel here. Have a question we can answer on the show? Email us!

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Allen Hall: Welcome to the special edition of the Uptime Wind Energy Podcast. I’m your host, Allen Hall, and I’m here with my co host, Joel Saxum. Our guest today is Jatin Sharma, a managing partner at NARDAC. NARDAC is an independent wholesale broker, which navigates the relationship between insurance carriers and retail brokers.

And as the turbulent as the insurance market is at the moment, NARDAC may be your key to getting there. Success weathering the insurance storm. NARNAC is a specialist for large, complex projects that includes a focus on renewable energy. Whether you’re an original equipment manufacturer, a developer building a wind farm, or an asset owner, NARNAC helps the industry understand the risks.

Jatin, welcome to the program.

Jatin Sharma: Thanks for having me.

Joel Saxum: So Allen and I of course in the lightning world and wind and with the podcast and the networks that we have, we talk to people about failures and fires and gearboxes and all these different things. Do you see the like macro changes, right? So I say this because I’ve talked with people in the insurance world or in the, on the risk world on the IPP side that say, yeah, our premium is going up on this site.

Or our deductibles are starting to increase here for this reason. And to me, it seems like that’s more of a, like a micro okay, that’s specific to this project, this technology, this site, mostly it’s this site but with better communication strategies in a more I would say a more integrated insurance market.

Do you see the premiums or the deductibles starting to change? And let’s just, it’s for ease of use. Let’s focus on like the U S onshore market.

Jatin Sharma: If we did like a. a three to five year time horizon with today versus, three to five years ago. I’d say that we’ve probably seen an increase of about 40 percent on the price paid per megawatt for wind operators in the US.

And that, that would be my kind of average number, across a portfolio and that’s on a risk adjusted basis. And you might say, wow, 40%, that’s a lot. That’s pretty material. What does that do to your OPEX? What does that do to valuations? I think it’s important to put it in context that insurance is directly linked to the cost of capital.

So in the same way that, five years ago, if you told me you had a million dollars and you’re going to put it in the bank account, you probably got to get a quarter percent interest, maybe half a percent, on lowest risk opportunity. Now you go and put it in, maybe you can get 5. 5%. In the same way, insurance will have turned around and said if five years ago, for every 100 you were giving me, and I was giving you back 55 to 65 in claims, payments, let’s say loose numbers here, that is no longer an acceptable return, I want to be giving you, I want to be getting 150 and I want to, not give back more than 50 to 75.

Fives. In that sort of ratio and it’s the law of large numbers. So there are many sites that have zero claims and every now and again, you have a catastrophic fire and that one fire is enough to wipe out the entire premium base of Vermont wind farms. So just you know, there is that kind of proportionality behind it.

Joel Saxum: There has been some of those large I mean on the solar side too that one in texas 100 million dollar losses and stuff and those things in my mind I guess of course i’m not an insurance professional But have to shake the foundation of what that insurance Looks like as well because natural catastrophes in the united states.

We don’t see this as much or understand this in a general sense as a u. s citizen because You We’re used, we grow up seeing tornadoes and floods and fires and stuff on the news all the time. But to be honest with you, the extreme weather in like the central part of the United States whether it’s hail, lightning, tornadoes, these kind of things, it’s not as common in the rest of the world.

So natural catastrophe is a little bit more extreme here sometimes.

Jatin Sharma: I would argue that the wind side is more robust in terms of technology and how it’s fed. And so the wind industry needs to be treated differently from. Other technologies that are potentially more susceptible based on how the technology has been built.

So we do tend to push back a little bit when insurers try to tar wind with the same brush as solar and other technologies. But yeah, look, fundamentally this is first world country, third world weather, somebody once said to me, and the challenge is that If you look at the trifecta of how developers want to use their investment dollars, they want the best power purchase agreement per megawatt hour that they can get they want the best p90 value that they can get So great resource And they want to spend the lowest cost per megawatt, so that’s your trifecta by that token, it’s great to get into the japanese market or it’s great to get into You know the puerto rico market for solar and if you look at the u.

s. Yeah, okay I could probably get into texas and build new wind farms My cost per megawatt is going to be very competitive. I can build it cheaply You the resource is pretty good for the most part with wind speed studies, my ppa is not going to be great compared to others.

Maybe I can get a hedge. Maybe I can get some corporate ppa money and so they’ll look at it that way and I think the economics of renewables and the sites that have had bigger claims you know you get what you pay for if you buy land That’s very cheap and are able to build it a very large project You know, there’s a reason why you couldn’t do that in PJM.

There’s a reason you couldn’t do that in,

parts of Utah. And some of the areas that are fairly benign, there’s plenty of space to build those projects, but is there enough demand at the node, in that particular location for a big mega projects and is there going to be enough return on investment?

So those are some of the factors that come into play.

Joel Saxum: That’s an interesting concept to me as well, because now we’re looking at offshore wind in the U S. And offshore wind in the U. S. I would imagine that the models that are based on things to happen aren’t as developed because there hasn’t really been, say, East Coast, U.

S., there hasn’t been an actual, a civil development offshore. Are those things, is that uncharted waters or do you guys have a pretty good handle on that? What’s going to happen out there for natural catastrophes.

Jatin Sharma: I remember being at an offshore wind conference in Tyson’s corner, maybe back in 2010, and it was full of a bunch of CEOs and I had to give a small presentation about why European windstorm risk versus U S hurricane risk, the two do not necessarily compute with the added exposure that you’re getting here.

And many of these developers were looking at that kind of Boswash location. So Boston to Washington, in terms of development. And one of them said to me, Oh, you just don’t know what you’re talking about. Hurricanes don’t go up that far. They don’t do this. Superstorm Sandy was probably the next year or Yeah, the Jersey’s, yeah, just beat the hell out of it.

Yeah. So I think to, to some extent offshore wind has been pretty robust against major European wind storms. And there are some studies by third party consulting companies that have shown that. But it doesn’t mean that they’ve necessarily been tested in the same way to a category, two, three or higher from Virginia up to Maine.

And, the insurance industry gives them a level of coverage for those projects. But as soon as you have one big loss, the amount of coverage available for it becomes very limited. It’s not dissimilar to, the hail example you gave. Suddenly the market learns of a large loss in the ERCOT ISER and suddenly.

It’s no longer available on a commercial basis to get full value hail. So I think we’re playing this kind of game of chicken with natural catastrophe impacting a project.

Allen Hall: Yeah, a couple local codes, regulations, and even at the state level, there seems to be a lot of changes happening where some states just essentially outlawing renewable power.

projects altogether. You’ve had the problems on the East Coast for offshore wind with the state of New Jersey and the state of New York and some of the permitting. How does that play into the insurance market? How do they address those risks and what are they looking forward? What are some of the likely things to happen in the next couple of years there?

Jatin Sharma: I should probably say that insurance is really there to cover the projects against a sudden unforeseen risk. So fortuitous Typically, it doesn’t look at enterprise risk, so a developer failing to get a project to go ahead because of part of the stakeholders at government level basically saying you can’t build if a claim is exacerbated by government ordinance, yeah, insurance will come in to do that, but the project should already be in construction or it should be operating.

We’ve typically seen claims inflation happen. When there’s been like, for example, an offshore wind let’s say something goes wrong on the project. Vessels need to come in, intervene to repair something but there are environmental restrictions around. You can’t do any construction during this period because it’s sensitive to, local duck mating season, or whatever it might be.

We do see that but yeah, insurance is really there. To say, Hey, who’s taking investment risk on this project that’s ready to, it’s shovel ready. Who’s taking investment risk on this project that’s now operating, what sort of things keep you up at night? Oh, if the transformer blows up, if we lose a number of turbines for a national catastrophe.

If the battery storage unit goes out, like those are the things that insurance is really bad to get involved.

Joel Saxum: To sister onto that. Does it affect the capacity coming from the global markets? So like the capacity that you guys get to deploy coming from Zurich and coming from, different places in the world, what are those companies watching what’s happening politically elsewhere and saying, you know what?

We were gonna, we were gonna, put 400 million into the pool to, to give into this and write some percentages on it. But, now we’re just going to turn ourselves elsewhere or is that capital still there and available in lieu of these permitting issues?

Jatin Sharma: Insurers love a good silo and, offshore onshore are distinct silos and they carry different term horizons as well.

So if you look at an offshore wind project. Realizing the construction to COD of one of those could be a three to five year period depending on its size. That will be one particular division that will probably look at that sort of, what’s my cost of capital? What’s the term?

Where is it going to be based? How much exposure are we going to take? I think where it’s been problematic is a number of developers recently, giving signals that they’re pulling back in deploying, CapEx for certain projects. Meanwhile, the insurers have said we just. spent all this money pulling out of oil and gas to now retrain some of our staff to focus on offshore wind.

What are they meant to do? Is there a role for them? And then reshuffling them internally. And we have seen that some companies have been ahead of the project life cycle and ahead of the potential growth only to find that there’s nothing for those people to do, because the projects haven’t materialized.

And US offshore, it’s one of those things that’s dragged out for many years. We’ve seen this kind of stop start from demonstration phase to now some utility projects potentially materializing. But it’s been a, unfortunately, it’s been a bit of a stop start.

Allen Hall: Is the insurance market going to get involved heavily in the battery long term storage market? It seems like even in ERCOT, there’s going to be a big shift there to install a lot of batteries over the next year. Is that market coming together?

Jatin Sharma: Yeah, so when we first launched the business in 2020, I thought we would be doing offshore wind all day, every day.

And actually You know, one in five deals we’ve done have been batteries, whether it’s been micro grids in, PJM, New York areas with more densely urbanized areas to large scale best projects in the middle of nowhere, between Arizona and California, parts of ERCOT with utility scale batteries.

And the insurance market has been fairly lukewarm on batteries because some of them have been on the more prominent claims You know, it’s hard for the actuaries to get their head around. What’s the loss projection on a new technology? What’s my 20 year claims history for this class of business?

How is it protected and it’s its own. It’s its own technology. It’s its own occupancy Technology becomes obsolete very quickly. So so all these questions Is led to limited underwriting appetite. And we spent the best part of three and a half years gradually educating, persuading underwriting capital, whether it was in the U S or London to really get involved in this space.

And we have our own product coming out in the end of April called flex which if you’re a battery geek, you know why we call it that. But it’s really designed. to provide dedicated capacity for many of these battery companies through their retail brokers with some specialist knowledge that can actually support them on battery deals, whether it’s micro grid or utility scale.

So again, that’s one of the beauties of being a boutique. You can identify and say, here’s clearly a gap of knowledge in the market, that we’ve understood based on a number of transactions and experience. How do we find a more efficient solution for our clients? to access that capital in a way that adds value for the end transaction.

And, we’re seeing so much growth, which is fantastic because the grid side is really slow to move. So to have battery deployment, if it’s done in a sustainable way, I think is really positive.

Joel Saxum: So Jatin we’ve touched on a lot of topics here and appreciate the fact that you’re so sharp on all of them and just rattle off answers to our questions, which is great.

But one of the things that we’re seeing again, I’m talking from the lightning space, right? So there we’ve had in the United States, 09 to 2012, there was GE 1. 5s were the flavor of the day and they got installed everywhere, right? There’s tons of them. Those turbines are, 37 to 40 meter blades and 80 meter tower heights.

So mostly, so you’re, 120 meters ish height, but now we’re getting to these. Three, four, five megawatts, the, like the Vestas V150 and The SGRE platforms and they’re reaching really high. And we’re starting to see a lot more lightning damage to some of these.

And it’s based on, some of it’s just based on physics, right? You’re low cloud base is lower. You’re up closer to them. Things happen. But what does these bigger machines look like for the risk appetite on your side?

Jatin Sharma: Insurers are usually quite nervous about underwriting innovation, even if it’s not a revolution, but it’s an evolution.

So increasing a blade length. We don’t actually know what the impact of that blade length increase is going to have on the gearbox performance. And in some of the early models that, I’ve been involved in, where they did jump up to a three and a half megawatt unit on a certain OEM platform.

Suddenly there’s a bunch of mechanical electrical breakdown claims, resulting from enhanced torque effect in, inside the nacelle. Again, we’ve got PhDs and claims professionals on my team, and they can speak at much greater length to this, but, underwriters will be cautious that whilst the developer may get a bigger windswept area and ultimately, pi r squared, they can get more return on their investment.

They’ll be looking at it and saying I’ve got new technology risk. I’ve got something that when it goes wrong, I don’t have a lot of have a high lead replacement time. It’s not like these blades are just manufactured in the same level as for a 90 meter roto with 45 meter blades.

There’s going to be an element of longer lead replacement times. The cost of that with any available crane that can handle that sort of height is going to be much longer. So potentially a higher downtime. And because the expected revenue is such a higher wind swept areas, greater, Then that’s an even more enhanced downtime.

So I think the smaller, older units have actually been pretty good performers. For a lot of our companies, we’re seeing a number of clients now enter the repower space, choosing to just leave things as they are and make small tweaks and then get into the 80, 20 PCC repowering campaign.

But the larger units, there is a certain amount of trepidation from insurers. And again, with the value of the turbine now being three to four times higher than the original 1. 5s to 2s that we’re talking about, they’ve said our deductible should go up in proportion to that.

We’re not going to give 100, 000 deductible like we did on those units. We want to be looking at 250, 000 to 500, 000. And it’s okay, the margin for error then is pretty, pretty small for the developers who are taking that on their balance sheet.

Joel Saxum: Yeah, it makes, that all makes sense.

We always go by the simple rule of a million dollars a megawatt, right? So if you had a GE 1. 5 and that whole turbine came down, generally 1. 5 at the cost that’s not cranes and all this other stuff. But now if you had the same kind, it can be the same event, right? It can be a blade failure caused by X, Y, Z, you name it.

A blade failure swings down, hits the tower, takes the turbine down. Now, if you have that same exact thing happen on a four or five megawatt platform. That turbine is not a million and a half, it’s 5 million. So the risk is in proportion.

Jatin Sharma: And that’s based on economies of scale too, because most people will sign a turbine supply agreement and let’s say they do a 300 megawatt projects and the turbine supply agreement averages out at 1.

2 million per megawatt, roughly on a new project. But if you have a single turbine loss, I’m sure it’s going to cost more like two and a half million per megawatt to replace it just based on, The cost of turbine versus the cost of procuring, the 100 that you did for the site and the lack of economies of scale.

Plus, unless you’re a developer that’s ordering 20 more of these for 20 more projects, it’s hard to get to the top of the order book with some of the OEMs cause they’re signing up to three or four large customers. And that’s, what’s really driving it. So yeah, force majeure events like that do happen.

And. Replacing those units is very time consuming.

Allen Hall: Does the Sunzea projects and things of that scale with new turbines, new place, massive areas, new transmission lines, does that throw some unknowns into the otherwise relatively simple calculations on what rates should be and how insurance should approach it?

Jatin Sharma: Coverage pricing, for the technical space like operational wind or construction of these projects, it’s no different from you sitting down and, negotiating your life insurance with a carrier. They’ll ask you, what’s your age? Do you smoke? What’s your diet?

There’s all these kind of basic things. And in the same way, if you’re doing a 600 megawatt project or a thousand megawatt project, where is it? First thing we’re going to do is look at the natural catastrophe exposure. And there’s a huge difference between being in Brazoria County and Versus being in, Nevada.

And the amount of aggregate exposure the insurers have for some of these projects in the middle of nowhere is very different to if you’re doing a project, close to a large baseload center, near a major metropolitan area where insurers already got a lot of aggregate exposure.

Then it comes down to who’s your contractor? If it’s construction, there’s going to be all these kind of qualitative questions about who’s the EPC. Who’s doing the project management coordination? Who are the suppliers? What do we know about their failure rates? When it goes operational, is there one transformer, are there multiple transformers?

How much redundancy is there? And then, once you go through those, I don’t know, 26 independent variables you ultimately come up with a price, benchmarking basis, if you’re facetious, you can say I could have reversed engineered that number and it’s within, megawatt, or whatever it might be.

But I think there is a kind of science behind it. And many people who’ve done this job and have done it profitably for their carriers, they’re quite high in demand right now because many people try and get into renewable energy insurance. But not many people have done it for long enough where they can actually say, I had a profitable book of business and this is how I did it.

And many of those people have had to adapt to equipment going from onshore to offshore or from fixed bottom to floating or from solar PV on the west coast and east coast moving into the inland of the country. So there’s a science behind it. And I think, those quantitative and qualitative variables.

are ultimately what helps you drive the price and coverage on those sort of deals.

Joel Saxum: A lot of the, or the majority of the carriers, the underwriters, the capacity coming in, and even the brokers, they don’t have subject matter experts on board. They may have a couple of risk engineers that are there, and, But much like a lot of other engineers in the renewable energy space, they’re being tasked with stuff that they, it’s too much, right?

You have, I know of companies that, they’re writing policies left and right, however, they only have one risk engineer and they’re responsible for battery storage and solar and wind and all these different things. And so to me, that’s a big problem in the industry because the majority of things that are happening on a financial level and not necessarily on the engineering level.

Okay. There are a few companies that do the engineering side of things. Great. FM global being one of them, right? They put out their little sheets and all these different things. They have a lot of insights. So that’s one of the differences that I see of you guys at Nardac right now, but having this conversation with you, I’ve talked with.

With Robert Bates and I’ve talked with Dr. Tom before and gleaned some things from them. Smart people on your team. And I think that’s what sets you guys apart in the industry.

Jatin Sharma: I think we, we try and start with the end in mind, so when we come in, I described it as a relief picture, many of the retail broker clients that we work with that are supporting developers, IPPs, utilities, they have their own in house experts and we try not to take anything away from that.

We try and build on it and enhance it. With access to alternative capital providers that may,

want to support those projects because that’s part of their growth focus. Everything’s become so commoditized that actually one of the reasons I enjoy working in the insurance industry, I’m one of the few people that went from school straight to insurance after after finishing my undergrad degree and then kept working in insurance during grad school and business school.

Is that it is, it’s a relationship business built on kind of expertise, negotiation, persuasion, and trust. And if you send out your IPP’s portfolio to 50 insurers and just think you’re going to get the optimum result, you’re actually just going to waste, 46 insurers times.

It’s a much more slow burn and it involves inviting people to your site. It involves meeting the head of O and M and the developers that do this. Sometimes they’ll have a professional buyer of insurance in house. And other times it’ll just be the CFO general counsel or head of asset management, but it’s just a much more informed buyer.

And so they bring insurers along in the process. And it’s marrying up the specialist expertise that they have in house with getting in front of insurers, creating a relationship, Where there’s buy in to what they’re doing and why they’re doing it.

So then when they do go and buy a five megawatt platform, or they do decide to do a Frankenstein repowering campaign whatever it might be.

There is buy in into what they’re doing. And it’s meant in an authentic, genuine way. If the wind developers listening to this aren’t all in Disneyland with us during RE plus in September. They’re doing something wrong, cause that’s where you need to be building your relationship and ultimately getting buy in for what the company’s doing.

Allen Hall: Jatin if people want to go visit Disneyland, this is fall and meet with you. How do they do it? How do they connect with you?

Jatin Sharma: Yeah, look we’re on nardac.com has all the contact information of the different partners. You can email us, we have a LinkedIn page you can message us on LinkedIn as well.

Okay. Yeah don’t be shy. If we can support you and your retail insurance broker or any transactions, we’d love to help.

Allen Hall: If you’re an operator, owner, or developer out there looking for help in the insurance marketplace Nordic is the place to reach out to. So Jatin thank you so much for being on the program.

Jatin Sharma: Thank you.

https://weatherguardwind.com/nardac-optimal-coverage-renewable-markets/

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Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

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Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

Rosemary reports back on her visit to multiple Chinese renewable energy companies, Vineyard Wind activates a $69.50/MWh PPA with Massachusetts utilities, and Bronze Age jewelry halts a German wind project.

Sign up now for Uptime Tech News, our weekly newsletter on all things wind technology. This episode is sponsored by Weather Guard Lightning Tech. Learn more about Weather Guard’s StrikeTape Wind Turbine LPS retrofit. Follow the show on YouTube, Linkedin and visit Weather Guard on the web. And subscribe to Rosemary’s “Engineering with Rosie” YouTube channel here. Have a question we can answer on the show? Email us!

[00:00:00] The Uptime Wind Energy Podcast brought to you by Strike Tape protecting thousands of wind turbines from lightning damage worldwide. Visit strike tape.com and now your hosts.

Allen Hall 2025: Welcome to the Uptime Wind Energy Podcast. I’m your host, Allen Hall. I’m here with Yolanda Padron in Austin, Texas, who is back from the massive wedding event. Everybody’s super happy about that, and Rosemary Barnes had her own adventures. She just got back from China and Rosemary. You visited a a lot of different places inside of China.

Saw some cool factories. What all happened?

Rosemary Barnes: Yeah, it was really cool. I went over for an influencer event. So if you are maybe, you know, in the middle of your career, not, not particularly attractive or anything you might have thought influencer was ruled out for you as a career. No one, no one needs engineering influencers in their [00:01:00] forties.

It’s incorrect. It turns out that’s, that’s where, that’s where I, I found myself. It was pretty cool. I, I did get the red carpet rolled out for me. Many gifts. I had to buy a second bag to bring home the gifts, and when I say I had to buy a second bag, I had to mention. Oh, I have so many gifts, I’m gonna need another bag.

And then there was a new bag presented to me about half an hour later. But, so yeah, what did I do? I got to, um, as I was over there for a Sun Grow event. Huge, huge event. They, um, it’s for, it’s for their staff a lot, but it’s also, they also bring over partners. They also bring over international experts to talk about topics that are relevant to them.

Yeah. They gave everybody factory tours in, um, yeah, in, in shifts. Um, I got to see a module assembly factory, so where they take cells, which are like, I don’t know, the size of a small cereal box, um, and assemble them into a whole module. Then the warehouse, warehouse was [00:02:00] gigantic. It, um, was, yeah, 1.8 gigawatt hours worth of cells that couldn’t hold in that one building.

They’re totally obsessed with fire safety there in everything related to batterie, like in the design of the product, but also in, in the warehouse. And they do, yeah, fire drills all the, all the time. Some of them quite big and impressive. Um, I saw inverter manufacturing facility that was really cool.

Heaps of robots. Sw incredibly fast. Saw a test facility.

Allen Hall 2025: So was most of the manufacturing, robotics, or humans?

Rosemary Barnes: Yeah. So at the factory it was like anything that needed to be done really fast or with really good quality was done by robots. So they had, um, you know, pick and place machines putting in. Um, you know, components in the circuit board, like just insane, insane rate.

I’m sure it’s quite, quite normal, but, um, just very fast. Everything lined up in a row. Most of their quality control is done by robots. Um, so it does well it’s done by ai, I should say. [00:03:00] Taking photos of, of things and then, um, AI’s interpreting that. Repairs, I think were done by humans. There were humans doing, um, like custom components as well.

Like not every product is exactly the same. So the custom stuff was done by humans.

Allen H: So that’s the Sun Grove facility, right? You, but you went to a couple of different places within China?

Rosemary Barnes: Yeah, I went to another, a factory, a solar panel, a factory, um, from Longie. That was really cool too. I got to see a bit more probably of the, um, interesting, interesting stuff there, like, uh, a bit more.

Um, yeah, I don’t, I dunno, processes that aren’t, aren’t so obvious. Not just assembly, but um, you know, like printing on, um, bus bars and, you know, all of the different connections and yeah, it was a bit, a bit more to it in what I saw. Um, so that was, but it, it’s the same, you know, as humans are only involved when it’s a little bit out of the.

Norm or, um, where they’re doing repairs, actual actually re [00:04:00]repairing. You know, the robots or the AI is identifying which components don’t meet the standard and then they’ll go somewhere where a human will come and, um, fix them.

Allen H: Being the engineer there. Did you notice where the robots are made? Was everything made in China that was inside the factory or were they bringing in outside?

Technology.

Rosemary Barnes: I didn’t think to look for that, but I would assume that it was Chinese made, also

Allen H: all built in country

Rosemary Barnes: 20 years ago that wouldn’t have been the case, but I think that China has had a long, a long time to, to learn that. Again, it’s not like, it’s not, it’s not rocket science. These are, these are pick and place machines, you know, like I remember working on a project very early in my career, so.

Literally 20 years ago, um, I was working with pick and place machines. It’s the same, it’s the same thing. Um, some of them are bigger ’cause they’re, you know, hauling whole, um, battery packs around. It’s just the, um, the way that it’s set up, but then also the scale that they can achieve. You just, you can’t make things that cheap if you don’t have the [00:05:00] scale to utilize everything.

A hundred percent. Like I said, wind turbine towers is a really good example. ’cause anyone, any steel fabricating

Allen H: shop

Rosemary Barnes: could make a wind turbine tower. Right? They, they could, they could do that. You know, the Chinese, um, wind turbine tower factories have the exact right machine. They don’t have a welder that they also use for welding bits of bridges or whatever.

Uh, they have the one that does the exact kind of world that they need, um, for the tower. They, you know, they do that precisely. Robotically, uh, exactly the same. And, you know, a, a tower section comes on, they weld it, it moves off to the next thing, and then a new one comes on. They’re not trying to move things around to then do another weld in the same machine.

You know, like they’re, um, but the exact right. Super expensive machine for the job costs a whole bunch to set up a factory. And then you need to be making multiple towers every single day out of that factory to be able to recoup on your cost. And so that is [00:06:00] the. The, um, bar that is just incredibly hard slash impossible for, um, other countries to clear.

Allen H: Can I ask you about that? Because I was watching a YouTube video about Tesla early on Tesla, where they wanted to bring in a lot of robotics to make vehicles and that they felt like that was the wrong thing to do. In fact, they, they, they kinda locked robots in and realized that this is not the right way to do it.

We need to change the whole process. It was a big deal to kind of pull those. Specialized piece of equipment, robots out and to put something else in its place in that they learned, you know, the first time, instead of deciding on a process, putting it in place and then trying to turn it on, see if it works, was to sort of gradually do it.

But don’t bolt anything down. Don’t lock it in place such that it doesn’t feel like it’s permanent. So you engineer can think about removing it if it’s not working. But it sounds like this is sort of the opposite approach of. A highly specialized [00:07:00] machine set in place permanently to produce. Infinite amounts of this particular product, does that then restrict future changes and what they can make or, I, I, how do they see that?

Did, did you talk about that? Because I think that’s one of an interesting approaches.

Rosemary Barnes: I didn’t actually get as much chances I would’ve liked to speak to engineers. Um, I was talking mostly to salespeople and installers. Um, so they know a lot, but I couldn’t, um, like in the factory tours, I was asking questions.

Um. That kind of question and, and they could answer all, all that. Um, but outside of that, and I couldn’t record in the factory obviously. Um, but I did, I did take notes, but what I would say is that they would have a separate facility where they would be working out the details of new products and new manufacturing processes and testing them out thoroughly before they went and, you know, um, installed everything correctly.

But what I do hear is that, you know, especially with solar power. Maybe to [00:08:00] batteries to a lesser extent. You, you know, you like, you have these kind of waves of technology. Um, so you know, like everyone’s making whatever certain type of solar cell and then five years later, um, there’s a new more efficient configuration and everybody’s making that.

And I know that there are a lot of factories that kind of get scrapped. Um, and the way that China’s set up their, like, you know, their economy around all this sort of thing is set up is that it’s not that, like every company doesn’t succeed. Right. They SGO was a big exception because they’ve been going since 1997, I think it was.

It was started by a professor quid his job and hired a room across the, across the road from his old university and, you know, built his first inverter and, um, you know, ’cause he, he could see that. Uh, the grid was gonna have to change to incorporate all of the solar power that was coming, which to be honest, in 1997, that was like pretty, pretty farsighted.

That was not obvious to me when I started working in solar in mid two thousands. And it was not obvious to me that this was a winner.

Allen H: Well, has sun grow evolved then quite a bit? ’cause if you’re [00:09:00] saying that they’ve minimized the cost to produce any of their products by the use of robotics, they have been through an evolutionary process.

You didn’t see any of the previous generations of. Factories. You, you were just seeing the most modern factory that that’s actually producing parts today. So is that a, is that a, is that just a cost mindset that’s going on in China? Like, we’re just gonna produce the lowest cost thing as fast as we can, or is it a market penetration approach?

What are, what were, were the engineers in management saying about that?

Rosemary Barnes: I think there’s a few different aspects to that, like within China. So Sun Grow is the big company with a long track record and they’re not making the cheapest product out of China. So I think that they are still trying to make the cheapest product, but they’re not thinking about it just in the purchase price.

Right. They’re thinking more in terms of the long, long term. You know, they’ve been around for 30 years and probably expect to be around for another 30 years. They don’t wanna be having [00:10:00] recalls of their products and you know, like having to, um. Installers in particular are probably working with them because they know that they won’t have to go back and do rework and the support is good and all that sort of thing.

So they’re spending so much money on testing and you know, just getting everything exactly right. But I don’t think that that’s the only way that China is doing it. There’s, you know, dozens, probably hundreds of companies. Um. Doing similar stuff between Yeah, like solar panels and associated stuff like inverters and, and batteries.

So many companies and all of them won’t succeed. You know, sun Girls Facility in, I was in her and it’s huge, you know, it’s like a, a medium sized country town. Just their, um, their campus there, they’re not, they’re not scrapping that and moving to a new site, you know, they’re gonna be. Rejiggering and I would expect that, you know, like everything’s set up exactly the way it needs to be, but it’s not like gigantic machines.[00:11:00]

It’s not like setting up a wind turbine blade factory where it’s hard if you designed it for 40 meter blades, you can’t suddenly start making 120 meter blades. Like it’s, they will be able to be sliding machines in and out as they need to. Um, so I, I, yeah, I guess that it’s some, some flexibility. But not at the cost of making the product correctly.

Allen H: Did you see wind turbines while you were in China?

Rosemary Barnes: I, the only winter I saw, I actually, I saw, because I caught the train from Shanghai, I actually caught the fast train from Shanghai to, which is about, it depends which one you get between like an hour 40 or three hours if it stops everywhere. Um, and I did see a couple of wind turbines on the way there, out the window, just randomly like a wind turbine in the middle of a, a town.

Um, so that was a bit, a bit interesting. But then in the plane, on the way back, the plane from Shanghai to Hong Kong, I, at the window I saw a cooling tower of some sort. So either like a, yeah, some kind of thermal [00:12:00] power plant. And then. Around all around, well, wind turbines, so onshore wind turbines. So I don’t know.

Um, yeah, I, I don’t know the story behind that, but it’s also not a particularly windy area, right? Like most of the wind in China is, um, to the west where, uh, I wasn’t

Allen H: as wind energy professionals, staying informed is crucial, and let’s face it. That’s why the Uptime podcast recommends PES Wind Magazine. PES Wind offers a diverse range of in-depth articles and expert insights that dive into the most pressing issues facing our energy future.

Whether you’re an industry veteran or new to wind, PES Wind has the high quality content you need. Don’t miss out. Visit PS win.com today. So there are two stories out of the US at the minute that really paint a picture of the industry. It was just being pulled in opposite directions. The Department of Interior announced agreements to terminate two more.

Offshore wind leases, uh, [00:13:00] Bluepoint wind and Golden State wind have agreed to walk away from their projects. Global Infrastructure Partners, which is part of BlackRock, will invest up to $765 million in a liquified natural gas facility instead of developing blue point wind. Ah. And Golden State Wind will recover approximately $120 million in lease fees after redirecting investment to oil and gas projects along the Gulf Coast, and both companies say they will not pursue further offshore wind development in the United States.

Well, we’ll see how that plays out. Right? Meanwhile. In Massachusetts Vineyard Wind, which has been fighting with GE Renova recently has activated its long awaited power purchase agreement with three utilities. The contract set a fixed electricity price of drum roll please. [00:14:00] $69 and 50 cents per megawatt hour for the first year and a two and a half percent annual increase.

Uh, state officials say the agreements will save rate payers $1.4 billion over 20 years. So $69 and 50 cents per megawatt hour is a really low PPA price for offshore wind. A lot of the New York projects that. Renegotiated we’re somewhere in the realm of 120 to $130 a megawatt hour, and there’s been a lot of discussion in Congress about the, the usefulness of offshore wind.

It’s intermittent blahdi, blahdi, blah. Uh, but the, the big driver is what costs too much. In fact, it doesn’t cost too much. And because it’s consistent, particularly in the wintertime, uh, electricity prices in Massachusetts in the surrounding area are really high. ’cause of the demand and ’cause how cold it is that this offshore wind project, vineyard wind would be a huge rate saving.

And [00:15:00] actually the math works out the math. Math everybody. Do you think this is, when we go back five years from now, look back at this. This vineyard wind project really makes sense for Massachusetts.

Yolanda Padron: I think it really makes sense for Massachusetts. I’m really interested to know what the asset managers are thinking on the vineyard wind side, um, and if they’re scared at all to take this on.

I mean, it’s great and I’m sure they can absolutely deliver. Like generation I don’t think should be an issue. Um. I just don’t know. It’s, it sounds like they’re leaving a lot of money on the table.

Allen H: I would say so, yeah. But remember, the vineyard win was one of the early, uh, agreements made when things were, this is pre Ukraine war, pre Iran conflict on a lot of other, a lot of other things.

It was pre, so I remember at the time when this was going on that. P. PA prices were higher than obviously a lot of other [00:16:00] things. Onshore solar, onshore wind, it would, offshore is always more expensive, but I don’t remember $69 popping up anywhere in any filing that I remember seeing. So even if they had said $69 five years ago, I think that would’ve still been like, wow, that’s pretty good for an offshore wind project.

And now it looks fantastic for the state of Massachusetts

Yolanda Padron: because I know that there’s sometimes, and we’ve talked about this in the past, right? There are sometimes projects where, you know, you think you, you’ve got a really good price and you’re really excited about it, and then it goes into operation and then like a couple years down the road, prices increase quite a bit and it’s not the worst thing in the world.

But you do just kind of think a little bit like, I wish I could. Renegotiate this or you know, just to get, to get our team a bit of a better deal or to get a bit more money in operations and everything.

Allen H: Does this play into Vineyard wind claiming $850 [00:17:00] million in dispute with GE Renova that at $69 PPA, there’s not a lot of profit at the end of this and need to get the money out of GE Renova right now, and maybe why GE Renova wants to get out of this because they realize.

The conflict that is coming that they need to separate the, the themselves from this project. It’s, it’s very, as an asset manager, Yoland, as you have done this in the past, would you be concerned about the viability of the project going forward, or is all the upfront costs. Pretty much done in that operationally year to year.

It’s, it’s not that big of a deal.

Yolanda Padron: As an asset manager taking this on, I’d probably have started preparation on this project a lot earlier than other of my projects like I do. I know that usually there’s, you know, we’ve talked about the different teams, right, throughout the stages of the project until it goes into operations, [00:18:00] but.

And usually you don’t have a lot of time to prepare to, to make sure all of your i’s are dotted and t’s are crossed, um, by the time you take the project and operations from a commercial standpoint. But this project, I think would absolutely, like you, you would need to make sure that a lot of the, of the things that you’re, that might be issues for some of your projects like aren’t issues for this project.

Just to make sure at least the first few years you can. You can avoid a lot of, a lot of turmoil that the pricing and the disputes and the technical issues are gonna cause you, because I feel like it’s just, there’s, there’s just so many things that just keep this side, just keeps on getting hit, you know?

Allen H: Well, I, I guess the question is from my side, Yolanda, is obviously inflation, when this project started was pretty consistent, like one point half, 2%. It was very flat for a long time. And interest rates, if you remember when this project started, were very, very low. Almost [00:19:00] nonexistent, some interest rates.

Now that’s hugely different. How does a contract get set up where a vineyard can’t raise prices? It would just seem to me like you would have to tie some of the price increase to whatever the inflation rate is for the country, maybe even locally, so that if there were a, a war in Ukraine or some conflict in the Middle East.

That you, you would at least be able to, to generate some revenue out of this project because at some point it becomes untenable, right? You just can’t afford to operate it anymore. And,

Yolanda Padron: and I think, um, I, I haven’t, I obviously haven’t read the, the contracts themselves, but I know that there’s sometimes there, it’s pretty common for a PPA to have some sort of step up year by year.

And it’s usually, it can be tied to, um, the CPI for. Like the, the change in CPI for the year to year. So you’re [00:20:00] absolutely like, right, like maybe, I mean, hopefully they’re, they’re not just tied to the fixed 69 bucks per megawatt hour. Um, but, but yeah, to, to your point like that, that price increase could, could really save them.

Now that we’re, we’re talking the, the increase in, in inflation right now and foreseeable future,

Allen H: if you think about what electricity rates are up in the northeast. I think I was paying 30 cents a kilowatt hour, which is 300. Does that sound right? $300 a megawatt hour. Delivered at the house, something like that.

Right? So

Yolanda Padron: prices in the northeast are crazy to me,

Allen H: right? They’re like double what they are in North Carolina. Yeah.

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Yolanda Padron: you millions.

Allen H: Well, sometimes building a wind farm turns out more than expected construction workers at a 19 turbine wind project in lower Saxony Germany under Earth. What experts call the largest Bronze age Amber Horde ever found? The region, the very first scoop of an excavator brought up bronze and amber artifacts that stopped construction and brought archeologists back to the site.

Uh, the hoard has been dated between [00:22:00] 1500 and 1300 DCE and is believed to have belonged to at least three. Status women possibly buried as a religious offering. Now as we push further and further across Germany with wind turbines and solar panels for, for that matter, uh, we’re coming across older sites, uh, older pieces of ground that haven’t been touched in a long time and we’re, we’re gonna find more and more, uh, historically significant things buried in the soil.

What is the obligation? Of the constructor of this project and maybe across Europe. I, I would assume in the United States too, if we came across something that old and America’s just not that old to, to have anything of, of that kind of, um, maybe value or historically significant. What is the process here?

Rosemary Barnes: I assume that they’ve gotta stop, stop work. Um, yeah, that’s my, my understanding and I don’t think, do you have [00:23:00] grand designs in America?

Allen H: I don’t know what that is. Yes.

Rosemary Barnes: So missing out by not having that chat. It’s a TV show about people who are building houses or doing, um, ambitious renovations, and it just, it follows, it follows them.

You can learn a lot about project management or. The consequences if you decide that you don’t need to, project management isn’t a thing that you need to do. Um, anyway. I’m sure that in some of those ones I’ve seen they have had work stop because in their excavation they found a, um, yeah, some, some kind of relic, um, from the, from the past.

So based on that very well-credentialed experience that I have, I can confidently say that they would be stopping stopping work on that site. I mean, it’s so bad, bad for the developer, I guess, but it’s cool, right? That they’re, you know, uncovering, uh, new archeology and we can learn more about, you know, people that lived thousands of years ago.

Allen H: It, it does seem [00:24:00] like, obviously. Do push into places where humans have lived for thousands of years. We’re going to stumble across these things. Does that mean from a project standpoint, there’s, there’s some sort of financial consequence, like does the lower Saxony government contribute to the wind turbine fund to to pay the workers for a while?

’cause it seems like if they’re gonna do an archeological dig. That that’s gonna take months at a minimum, may, maybe not, but it usually, having watched these things go on it, it’s. It’s long.

Rosemary Barnes: But wouldn’t that be something that you’d have insurance for?

Allen H: Oh, maybe that’s it.

Rosemary Barnes: You know, it seems to me like an insurable, an insurable thing, like not so hard to, it would’ve affected plenty of other, like any project that involves excavation in Europe would come with a risk of, um, finding Yeah.

An archeological find. And having work stopped, I would assume.

Allen H: Yolanda, how does that work in the United States do, is there some insurance policy towards finding [00:25:00] a. Ancient burial ground and what happens to your project?

Yolanda Padron: I don’t know. I, um, the most I’ve heard has been, it’s just talking to like the government and like the local government and making sure that you have all your permits in place and making sure, you know, you might need to, to have certain studies so you know, you might not have to get rid of the whole wind farm or remove the hole wind farm, but at least a section.

Of it has to be displaced from what you originally had thought. I don’t know. I know it happens a lot in Mexico where you get a lot of changes to construction plans because you find historical artifacts or obviously not everybody does this, but like. Tales of construction workers who will like, find, they’re so jaded from finding historical artifacts that they just kind of like take and then dump them to the next plot over to not deal with it right now.

Not that it’s anything ethical, uh, or done by everybody, [00:26:00] uh, but it’s, but, but it’s a common occurrence, a relatively common occurrence.

Allen H: You would think it where a lot of wind turbines are in the United States, which is mostly Texas and kind of that. Midwest, uh, wind corridor that they would’ve stumbled across something somewhere.

But I did just a quick search. I really hadn’t found anything that there wasn’t like a Native American burial ground or something of that sort, which they previously knew. For the most part. It’s, so, it’s rare that, that you find something significant besides, well, maybe used some woolly mammoths tusks or something of that sort.

Uh, in the Midwest, it’s, it’s, so, it’s an odd thing, but is there a. A finder’s fee? Like do does the wind company get to take some of the proceeds of, of this? Trove of jewelry.

Rosemary Barnes: I, I would be highly surprised.

Allen H: Well, how does that work then? Rosemary?

Rosemary Barnes: I’d be highly surprised if that’s the case in Europe. I bet it would happen like that in America.

Allen H: Sounds like pirate bounty in a sense.

Rosemary Barnes: In, in Australia it wouldn’t be like that because [00:27:00]you, when you own land, you don’t actually. You, you own the right to do things from surface level and above, basically. I don’t know how excavation works. So you don’t generally have a a right to anything you find like that?

I mean, you shouldn’t either. It’s not, it’s not yours. It’s a, it belongs to the, I don’t know, the people that, that were buried. When you then to the, the land, like, I guess. The government in some way. I mean, in Australia it’s, um, like we don’t have so many archeological fines that you would find from digging.

I mean, it’s not that there’s none, but there’s not so many like that. But it is pretty common that, you know, there are special trees, um, you know, some old trees that predate, uh, white people arriving in Australia. And, um, you know, that have been used for, you know, like it might have a, a shield that’s been, um.

Carved out of it. Or, uh, hunting. Hunting things, ceremonial things, baskets, canoes, canoe like things, stuff like that. They call ’em a scar [00:28:00] tree ’cause they would cut it out of a living, living tree. And you know, so when you see a tree with those scars and that’s got, um, cultural significance. There’s also, you know, just trees that were, um.

That that was significant for cultural reasons and so you wouldn’t be able to cut down those trees if you were building any, doing any kind of development in Australia and a wind farm would be no different. I know that they are, there are guidelines for, if you do come across any kind of thing like that or you find any anything of cultural significance, then you have to report it and hopefully you don’t just move it onto the neighboring property.

Allen H: I know one of the things about watching, um. Some crazy Canadian shows is that. Uh, you have to have a Treasure Hunter’s license in Canada. So if you’re involved in that process, like you can’t dig, you can’t shovel things, only certain people can shovel. ’cause if they were to find something of value, you.

You’ll get taxed on it. So there’s just a lot of rules [00:29:00] about it. Even in Canada,

Rosemary Barnes: if I was an indigenous Australian and you know, some Europe person of European descent came and found some artifacts, uh, aboriginal. Artifacts. I would be pissed if they just took it and sold it. Like that’s just clearly inappropriate right.

To, to do that. So you, I don’t think it should be a free for all. If you find artifacts of cultural significance and you just, it’s, you find its keepers that, that doesn’t sound right to me at all.

Allen H: Can we talk about King Charles II’s visit to the United States for a brief moment?

Uh, he is a really good ambassador, just like, uh, the queen was forever. He’s, he does take it very seriously and the way that he interacted with the US delegation was remarkable at times in, in terms of knowing how to deal with somebody that there’s a war going on right now. So there’s a lot [00:30:00] happening in the United States that, uh, not only could it be.

Uh, respecting both sides of the UK and the United States’ position in a, in a number of different areas, but at the same time being humorous, trying to build bridges. Uh, king Charles, uh, had the scotch whiskey tariffs removed just by negotiating with President Trump, and sometimes that’s what it takes.

It’s a little bit of, uh. Being a good ambassador.

Allen H: Yeah. The very polished you would expect that. Right? But this is the first visit of. The king to the United States, I believe. ’cause he, he’s been obviously as a prince many, many, many times to the United States. [00:31:00]But this time as, as a, the representative of the country, the former representative or head of the country, which was unique.

I think he did a really good job. And I wish he, they would’ve talked about offshore wind. Maybe he could’ve calmed down the administration on offshore wind.

Rosemary Barnes: I bet that’s one of the, the goals. I mean, that’s an industry that’s important to. So

Allen H: I wonder if that happened actually. ’cause that’s not gonna be reported in, in the news, but how the UK is going on its own way in terms of electrification and I guarantee offshore wind had to come up it.

Although I have been not seen any article about it, I, I find it hard to believe that King Charles being the environmentalist that he is, and a proponent of offshore wind for a long time. Didn’t bring it up and try to mend some fences.

Rosemary Barnes: Maybe he’s playing the long game though. I mean, Trump is pretty, he’s transactional, but he also, you know, he has people that he really likes and you know, will act in their interests.

So maybe it’s enough to just be [00:32:00] really liked by Trump, and then that’s the smartest way you can go about it.

Allen H: Did you see the gift that King Charles presented to, uh, the US this past week?

It was a be from, uh, world War II submarine, which was the British, I dunno what the British called their submarines, but it was, the name of it was Trump. So they had the bell from. The submarine when it had been commissioned and they, they gave that to the United States, or give to the president. It goes to the United States.

The president doesn’t get to keep those things, but it was such a smart, it’s a great president. It’s such a smart gift, and somebody had to think about it and the king had to deliver it in a way that got rid of all the noise between the United States and the uk. Brought it back to, Hey, we have a lot in common [00:33:00] here.

We shouldn’t be bickering as much as we are. And I thought that was a really smart, tactful, sensible way to try to men some fences. That was really good. That wraps up another episode of the Uptime Wind Energy Podcast. If today’s discussion sparked any questions or ideas, we’d love to hear from you. Reach out to us on LinkedIn.

Don’t forget to subscribe, so you never miss this episode. And if you found value in today’s conversation, please leave us a review. It really helps other wind energy professionals discover the show. For Rosie and Yolanda, I’m Allen Hall and we with. See you’re here next week on the Uptime Wind Energy Podcast.

Vineyard Wind’s $69.50 PPA, Two Offshore Lease Exits

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America Is a Gun

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I’ve enjoyed quite a few works from the poet whose work appears at left, but this one speaks to me most clearly.

Money means everything, and the value we put on the lives of our children pale in comparison.

America Is a Gun

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Bizarre Moments in Western Philosophy

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Schopenhauer’s pessimism is essentially everything he left us, and his quote here is representative of that.

We can’t change our birthplace, but does anyone want to do that anyway?  We can change anything else about us that we choose, and we certainly don’t spend the rest of our lives defending anything.

Bizarre Moments in Western Philosophy

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