The escalation in insurance expenses arising from cable failures is generating concerns, as these failures account for approximately 85% of insurance claims related to offshore wind projects, according to a report.
The race to harness offshore wind energy has hit a significant roadblock, with the reliability of subsea cables emerging as a critical concern.
As the world’s ambitions to transition to cleaner energy sources gain momentum, the underwater cables responsible for transmitting electricity from offshore wind farms to the grid are proving to be a weak link.
Global Underwater Hub (GUH) has raised alarm bells about the escalating issue of subsea cable failures.
In fact, approximately 85% of insurance claims associated with offshore wind projects are linked to cable failures.
GUH Chief Executive Neil Gordon said: “It’s estimated that around 85% of the total value of offshore wind insurance claims relate to subsea cables.
“Insurers are losing money underwriting cables with the average settlement claim in the region of £9 million. Brokers have warned that the high number of cable claims is affecting capacity and coverage and the cost of repairs typically runs into millions, with warranties rarely covering the high cost of business interruption.
“If these critical components become uninsurable, offshore wind projects around the world will be derailed, making global 2050 net zero targets completely unachievable.”
