value engineering. measuring and managing risks in the wind energy industry
TRANSCRIPT
AVANTGARD
Treasury, liquidity risk, and cash management
May 2016
RiskGuard
Industry: Wind
Energy
Issue Number: 04
Stavros Thomas May 2016
Contents
1 Introduction 1 Mitigating wind energy risks and failures: Is there an effective
framework in place? 2 Identifying and defining risk 3 Risk measurement methods 4 The difficulty of measuring and monitoring risk 4 Effectiveness of risk management strategies 4 Looking forward: Challenges ahead 5 Appendix: Respondent Profile
Stavros Thomas is responsible for developing and executing strategic initiatives to mitigate the CoE for wind
energy facilities and improve social acceptability. He has been involved in development and value engineering
innovation to identify and manage risks and establish investments technical and economic viability. He is
experienced in project management and market intelligence methodologies, particularly in advanced
business analysis for investments viability and reputation management. He is also the founder of Anemorphosis
Research Group where he drives overall business strategy and execution in market research, KPI’s evaluation
and standardization of operational tasks. His background spans sectors of the IT and renewable
energy industry and includes high-performance trading platforms development under Waterfall as well as Agile
methodologies for investors and energy traders in Denmark, UK and Greece.
Introduction
As wind turbines number increased around the world, the
number of hazardous accidents is also rising, causing
critics to question overall safety. A recent study from
Anemorphosis Research Group reveals how wind power
professionals manage risk, from current areas of concern
to anticipated challenges. Risk management has become a priority in recent years.
Tumultuous economic conditions, geopolitical instabilities,
supply chain strategies diversity, new designs of W.T and
ever-changing policies have created new challenges in risk
management and the headlines often feature the fallout of
failed accidents/injuries/incidents/hazards/risks policies.
Having a strategy in place to deal with risk is of utmost
importance to today’s wind power professionals, and
companies are re-evaluating their framework for measuring,
monitoring and managing risk. One of the most important
aspects of risk assessment is to accurately identifying the
potential hazards before a catastrophic failure occurred.
Stavros Thomas conducted a study of 156 wind power
professionals and manufacturers in the first quarter of 2016 to
better understand how developers, investors and operators are
addressing various aspects of risks and accidents. The study
included respondents from around the world spanning a broad
range of stakeholders, with over 62 percent of respondents
from companies with more than $1 billion in revenue (see
appendix for a complete breakdown).
Mitigating wind energy risks and failures: Is there an effective framework in place?
The first step in managing risk is to identify areas that expose
the developer-operator-investor to potential risk. Once the
party of interest has a handle on the scope of exposure, it can
begin to develop a risk management framework. Of the companies surveyed, 84.9 percent said that they have an established framework in place for mitigating risk.
Furthermore, 65.4 percent of respondents felt their companies
were above average at identifying risk exposure, identifying
their risk management and monitoring teams as somewhat to
very effective.
Do you have a risk framework established within your
organization for mitigating wind energy risks and hazards?
15% No
85% Yes
How effective are you at identifying the risks
associated with a number of accidents or
casualties, (fatal accidents, accidents with
hospitalised or fatally injured victims, persons
injured) exposure across your organization?
6% Not effective
8% Below average
16% Very effective
30% Average
40% Somewhat effective
www.stavros.thomas.com/ 1
Identifying and defining risk
Without a solid grasp on areas of risk exposure, it is
challenging for wind power companies, developers and
operators to design effective risk reduction strategies.
Uncertainty surrounding risk exposure makes it difficult for
risk experts to make informed decisions and reduce potential
losses, making identifying and measuring risk crucial to a
company’s reputation.
This study identified seven types of risk: Operation and
Maintenance (O&M), Supply Chain (SC), Value Engineering
(VE), Design and Manufacturing, Business Development (BD),
Budgeting and Market risk. Respondents identified Operation
and Maintenance risks as the most difficult to measure,
followed by supply chain and business development risk.
Design risk was identified as the easiest to quantify and
scrutinize.
How difficult is it for your organization to measure these
areas of risk? (1 = not difficult; 2 = somewhat difficult; 3 = difficult; 4 = very difficult)
VE SC BD
Design
O&M Budgeting Market Risk
0.00 0.50 1.00 1.50 2.00 2.50
Market risk Given the tumultuous markets of the past few years and the
market recession because of the economic crisis in EU, it is
not surprising that financial professionals identified market risk
as one the most difficult area of risk to quantify and evaluate. A
possible contributing factor is that most respondents from the
wind power industry view their positions retrospectively rather
than in real time. Almost sixty-four percent stated that they
viewed their positions retrospectively, while 25.3 percent of
respondents monitor market positions in real time and 11.0
percent are unable to monitor positions.
Do you monitor exposure in real time or do you view
your positions retrospectively?
11.0% Unable to monitor
25.3% Real-time
63.7% Retrospectively
When estimating the effect of significant market deals, 57.7
percent of respondents view the effect on their entire
portfolio, while 13.1 percent focus on individual derivatives.
Over a quarter of respondents – 29.2 percent – stated that
they cannot estimate the effect of major market events on
their companies’ portfolios.
How do you estimate the effect of major market events?
13.1% Individual derivatives
29.2% Can’t estimate
57.7% Entire portfolio
The inefficiency to conclusively monitor markets and
portfolios in real time could inhibit the ability to measure the
effects of market risk and potentially challenge-in negative
way- the ability to detect upcoming exposure.
2 Financial risk management in treasury
Operation and Maintenance risk Operation and Maintenance risk was identified as the most
difficult measurement. A significant majority of respondents
(65.4 percent) utilize Maintenance Strategy as the main
criterion to measure the economic and technical viability of a
wind power investment while managing the risks associated
with the occupational safety and health. The next most utilized
measurement is Supply chain, with 12.1 percent of
respondents using measurements like procurement
excellence. Value Engineering methodologies, which are a
way of looking at the improvement of existing
services/products without comprising quality, are used as a
measurement by 10.4 percent of respondents. Other
responses included country or region risk (six percent),
industry risk (3.8 percent) and the feasibility studies score (2.2
percent). About ten percent stated that they use a combination
of methods in determining risk.
What kind of criteria do you use to measure Operational
and Maintenance risks in wind power sector?
Maintenance Budgeting 10.8%
Maintenance Strategies 43.3%
Procurement Excellence 5.4%
Country / region risk 2.0%
Training 13.4%
Weather Conditions 10.0%
Communication and Coordination 4.3%
Other 10.8%
Risk measurement methods - Value Engineering
A significant number of respondents utilize value engineering
as the primary risk measurement to support decision-making
and knowledge sharing in risks monitoring and management.
The Value Analysis technique was developed after the
Second World War in America at General Electric during
the late 1940s. Nowadays, VA is enjoying a renewed popularity
as competitive pressures are forcing wind energy companies to
re-examine their risk management methods in an attempt to
offer higher levels of customization without incurring high
degree of hazards and risks. A sensitivity analysis, used by 54.1 percent of respondents,
views the potential effects of risk deviation in any variable,
such as an increase in maintenance strategy, budgeting or
weather conditions. Other measures utilized by respondents
include Value at Risk (28.3 percent), Regulatory at Risk (27.6
percent), Market and Operational risks (23 percent), and
technological risks (17.8 percent).
What risk analysis measures are you using to support
risk management decisions?
Value Engineering revaluation 58.6%
Sensitivity analysis 54.1%
Value at risk (VAR) 28.3%
Regulatory at Risk 27.6%
Market and Operational risks 23.0%
Technological Risks 17.8%
Other 3.9%
Design and Manufacturing risks Design risk was identified as the simplest form of risk to
measure. A shocking figure, that is often used as a general
measure, is that typically 80% of the manufacturing risks of a
Product will be determined once the design drawing has been
released for manufacturing.
Close to eighteen percent of companies do not monitor how
manufacturing risks affect the occupational safety and health
values.
Are you currently monitoring how design or
manufacturing risks affect the value of your services?
17.2% Do not know
17.7% Don’t monitor risks or Manufacturing hazards
16.7% Design risks database
48.4%
Risks and hazards portfolio management available
Value at Risk (VaR) The Value at Risk method was the preferred measure of risk
analysis. Of the wind power (risk management) professionals
use the VaR method, almost 30 percent use the historical
method of calculation which utilizes data to show the
probability of a best and worst case scenario occurring based
on past accidents/injuries/incidents/hazards occurrences.
Twenty percent use the variance/ covariance method which
assumes normal distributions of probability failures, while 17.3
percent use the Monte Carlo simulation. A number of
respondents (44.2 percent) chose “None of the above,”
indicating that they may use a combination of methods or that
they are instead using other methods.
What method of value at risk (VAR) do you currently
use to measure the risk of your portfolio? 50.0% 40.0% 30.0% 20.0% 10.0%
0.0% Historical Variance / Monte Carlo None of Other method Covariance simulation the above
3
The difficulty of measuring and monitoring risk Effectiveness of risk management strategies
As soon as a method of risk measurement is established, a
monitoring system must be put into place. In looking at the
methods used by wind power professionals to manage risk, it is
apparent that technology used for monitoring and forecasting may
be an area for improvement. Manual spreadsheets are used to
perform short-term failure forecasting (predictive and preventive
maintenance) by 62.2 percent of respondents, while 45.3 percent
use manual spreadsheets to monitor components functionality prior
to executing a replacement or repair. Computerized Maintenance
Management and Forecasting Systems (CMMFS), which can help
increase efficiency and control in risks and hazard prediction, are
also used by a significant portion of wind power professionals.
Almost 27 percent use CMMFS in risks management forecasting,
while 34.2 percent use CMMFS to monitor probability failure
spectrum. Enterprise Resource Planning (ERP) systems are less
widely used for these purposes.
What technology tools/solutions are used to perform
short-term risk analysis forecasting?
4.5% Specialized risk forecasting technology
62.2% Excel spreadsheets (manual)
26.8% CMMFS
6.5% ERP system
How do you monitor counterparty/trading limits prior to
executing a derivatives trade? 50.0% 45.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0%
0.5% 0.0%
Excel Computerized Enterprise Don’t Other spreadsheets maintenance resource monitor
(manually) management planning
system (ERP) system
The prevalence of manual data entry for monitoring provides
some indication of areas where risk management departments
may be facing technological challenges that could put
significant barriers on their ability to monitor and assess
hazardous events and risks. The use of spreadsheets for risk
measurement and monitoring, while widely prevalent, can
introduce an element of operational risk into the wind power
plants and open the door to violate the occupational health and
safety. The combination of sophisticated CMMFS and open-
source historical database platforms can not only reduce
operational risk, but also increase forecasting accuracy and
efficiency by managing risk holistically rather than on a
stepwise basis.
Overall, only 7.0 percent of respondents felt their risk
management systems were below average (see “Mitigating
wind energy risks and failures”). While the study turned up
some indications that there may be room for improvement,
the overall sense was that their systems were deemed
reasonable enough to handle risks. When asked specifically how they felt regarding the reliability
of their risk forecast as a support basis for either establishing
human safety or investment viability, most indicated some
degree of reliability:
How reliable is your risk forecast as a support basis
either establishing human safety or investment
viability?
85% to 100% reliable 32.4%
70% to 84% reliable 30.5%
55% to 69% reliable 22.0%
Below 55% reliable 15.1%
Looking forward: challenges ahead Given the concern made obvious in the study regarding risk
management, it is not surprising that responders identified
technology innovation as the most challenged factor in the
coming two years. The next greatest concern was training
methodologies, followed by workplace design, operational and
maintenance excellence, and logistics.
How challenging are the following for your
organization in the next 12-24 months? (1 = not a challenge; 2 = somewhat challenging; 3 = challenging; 4 = very challenging)
0.00 0.50 1.00 1.50 2.00 2.50 3.00
Technology Innovations
Workplace Design
Operational-Maintenance Excellence
Training
Logistics
4
training
Appendix: respondent profile
Average annual revenue
13.2% €0- €250M
32.7% €5B+
10.9% €251M- €500M
12.7% €501M- €$1B
30.5% €1B- €5B
Location
5% Norway
12% Germany
6% France 6% Spain
29% Denmark
41% United Kingdom
1% Italy
5
About Anemorphosis’s RiskGuard
The Anemorphosis solution suite includes risk modeling, supply chain management,
project risk analysis, and value engineering approaches delivered directly to
developers, operators or investors. RiskGuard solutions help consolidate data from
multiple systems, drive workflow and provide connectivity to a broad range of
partners including operators, developers, insurance providers, innovation platforms
and market data. The technology is supported by a full range of services, including
managed cloud services, operations management, communication intelligence
administration and reputation management and is delivered by a team of domain
experts.
For more information, please visit:
www.anemorphosis.com/
Contact the author
Tweet this whitepaper www.twitter.com/riskguard
©2016 Stavros Thomas Trademark Information: Anemorphosis, the Anemorphosis logo and RiskGuard are trademarks or registered trademarks of
Anemorphosis Research group. All other trade names are trademarks or registered trademarks of their respective holders.
AVANTGARD
Treasury, liquidity risk, and cash management
May 2016
RiskGuard
Industry: Wind
Energy
Issue Number: 04
Stavros Thomas May 2016
Contents
1 Introduction 1 Mitigating wind energy risks and failures: Is there an effective
framework in place? 2 Identifying and defining risk 3 Risk measurement methods 4 The difficulty of measuring and monitoring risk 4 Effectiveness of risk management strategies 4 Looking forward: Challenges ahead 5 Appendix: Respondent Profile
Stavros Thomas is responsible for developing and executing strategic initiatives to mitigate the CoE for wind
energy facilities and improve social acceptability. He has been involved in development and value engineering
innovation to identify and manage risks and establish investments technical and economic viability. He is
experienced in project management and market intelligence methodologies, particularly in advanced
business analysis for investments viability and reputation management. He is also the founder of Anemorphosis
Research Group where he drives overall business strategy and execution in market research, KPI’s evaluation
and standardization of operational tasks. His background spans sectors of the IT and renewable
energy industry and includes high-performance trading platforms development under Waterfall as well as Agile
methodologies for investors and energy traders in Denmark, UK and Greece.
04/01/2016 Accident Type: Blade Failure
Site/area: Corme wind plant, Ponteceso, Coruna Country: Spain
Turbine Type: Description Two 15-metre blades from the turbine disintegrated in the
early morning of 3 January, striking an occupied house
280-metres away.
The blade failure occurred on one of 61 Desa A300 turbines
at the 18.3MW Corme wind plant in the Ponteceso district
of Spain's northernmost province of Coruna. The project is
owned and operated by EDP Renovavais and has been
online since 2000. Desa once belonged to Spanish turbine
pioneer Abengoa and is now partly owned by EDP.
The owner of the house affected reported to local media
that the turbine had been making "unbearable noises" for a
few days before the incident, following high winds in the
area. It also confirmed the turbine was operating at the
time of the incident, as wind speeds at the time were within
safe operational limits, at 90km/h (25m/s).
An explosion in the engine could be the cause of a wind
turbine losing two of its blades.
Source: http://www.windaction.org/
11/01/2016 Accident Type: Environmental Site/area: Chatham-Kent, Ontario Country: Canada
Turbine Type: Description According to the ministry, the REA was issued for the Gesner
wind farm, where, during construction, it was discovered that the
project needed construction of a transformer substation, which
the REA did not include approval for.
"Approval of a transformer substation is significant because of the
potential for transformer substations to produce noise," explains a
release. "
The company constructed the substation without seeking an
amendment to the REA."
Gesner Wind Energy Project operator, Saturn Power Inc.,
pleaded guilty to the two offences, which also included failing
to submit an annual bird and bat monitoring report on time,
contrary to the Environmental Protection Act (EPA), explains a
December 2015 release from Ontario's ministry of the
environment.
Source: https://www.wind-watch.org
14/01/2016 Accident Type: Environmental Site/area: Kaliakra protected area, Black Sea coast Country: Bulgaria
Turbine Type: Description The European Court of Justice has ruled against Bulgaria in a
case brought by the European Commission against the country
over its failure to protect unique habitats and important
species in the Kaliakra special protection area at the Black Sea
coast, the court announced on January 14 2016.
“The European Commission lodged the court action in October
2013, saying that large numbers of wind turbines and other
developments have been authorised without adequate
assessments of their environmental effects in the Kaliakra region,
a migratory route and resting place for highly endangered
species.”
Thousands of wind turbines and some 500 other projects have
been authorised without adequate assessments of their effect
on Kaliakra’s unique habitats and species, and on the
thousands of birds and bats that fly over the site each year on
their way to and from Africa.
Up to 100 per cent of the global population of the world’s
most endangered goose species – the red breasted goose –
spends the winter in a small number of sites in and around
Kaliakra. No account is being taken of the cumulative effect of
the authorised projects, which is also a requirement under the
Birds, Habitats and Environmental Impact Assessment
Directives.
“This judgment creates a loud and clear need for the Bulgarian
government to take immediate action to remove impacts on
the damaged Natura 2000 sites. It is also important that Natura
2000 sites all over the country are properly protected and the
Government should ensure that it does not allow damaging
projects in Natura 2000 areas, but instead encourages
sustainable development that is profitable both for nature and
people.”
Source: Written by The Sofia Globe staff on January 14, 2016
in Bulgaria | sofiaglobe.com
15/01/2016 Accident Type: Fire –Human Injury
Site/area: Uedem, NW Germany Country: Germany
Turbine Type: Description
A fire was sparked during maintenance work in a nacelle of a
wind turbine in Uedem (Kleve) on Thursday. It's believed that an
electrical arc sparked a fire in the unit. A total of three technicians
were able to escape but two were injured in the accident, one of
them seriously.
The accident occurred at about 11.00 in the morning. An electric
arc jumped over and caused the machine housing to catch fire.
One of the three present technicians sustained severe burns.
Together, they managed to get to safety before the nacelle was
completely engulfed in flames.
Firefighting efforts were not possible for the volunteer
firefighters in Uedem and Hau. They locked the wind turbine
from a radius of 500 meters. A specialist company was able to
separate the system from the mains. The rescue service treated
the three workers. A 43-year-old engineer had inhaled smoke,
the 22 year old engineer suffered severe burns. A rescue
helicopter flew him to a specialist clinic. Another 36-year-old
technician survived the whole thing unscathed.
Because of the heavy smoke, the population was in the districts
of Schneppenbaum and Louisendorf were encouraged to keep
their windows and doors shut. After three and a half hours, the
fire was extinguished for lack of fuel and the fire service was
ended. About 500 liters of oil were burned inside.
Source:http://www.feuerwehrmagazin.de/nachrichten/einsatze/
windkraftanlage-zwei-monteure-bei-feuer-verletzt-57058
15/01/2016 Accident Type: Human Health
Site/area: Cranberry Farm, Plymouth, MA Country: USA
Turbine Type: Description The Bourne Board of Health has issued more than a dozen
violation notices in connection with the construction of wind
turbines at the Bourne-Plymouth town line. Among the entities
that were sent notices were the Town of Plymouth, the Plymouth
Board of Health, Future Generation Wind, Consolidated Edison
Solutions, and Keith A. Mann, owner of the cranberry farm where
the turbines are being built.
Enforcement orders also went to Eversource, since the company
has entered into an agreement to receive power generated by
the turbines, and Mortgage Company Farm East Credit of
Middleborough. The board decided that Farm East Credit did
not do its due diligence in making sure that Future Generation
Wind, Consolidated Edison Solutions, and Mr. Mann had
secured variances for the project from the Town of Bourne.
Bourne town counsel Robert S. Troy has advised the board of
health that because the effects of the turbines, particularly
shadow flicker caused by the spinning blades, would be felt
by Bourne residents, the project comes under the board’s
authority. However, the companies’ position has been that
because the wind farm is in Plymouth, the board of health has
no jurisdiction.
Source:http://www.windaction.org/posts/44130-bourne-
board-of-health-takes-action-against-plymouth-
turbines#.V0gmskyKTDd
18/01/2016 Accident Type: Human Health
Site/area: Georgia Mountain Community Wind, VT Country: USA
Turbine Type: Description Turbine sound and fury aggravates neighbours. Vermont
Department of Public Service acknowledge that wind farm
neighbours experience severe negative effects from turbines
spinning. They describe neighbours' complaints as "credible
and serious" and state that there is evidence "of a significant
impairment of the quality of life for some nearby residents".
The department determined that the neighbours potentially
suffer significant adverse health effects.
Source:http://www.windaction.org/posts/44148-turbine-sound-and-
fury-aggravates-neighbors#.V0gqDUyKTDd
20/01/2016
Accident Type: Structural Failure
Site/area: Little Dowland, Bradworthy, Devon Country: UK
Turbine Type: E3120 Endurance Wind Power Description A 35m tall wind turbine installed on October 2012 at Little
Dowland, Dinworthy in Bradworthy, "fell over" on January 2016
and nearby residents questioning what had happened to the
turbine.
Mr Whittle said he planned to fight for all other wind turbines
in the area to be safety checked.
Sarah Payne, who lives 320 metres from the turbine, said: "The
wind turbine fell over at Little Dowland sometime around
January 3. As far as I am aware the Health and Safety Executive
will not be investigating this incident as no one was injured or
killed.
Back in 2013, Endurance Wind Power, the company which made
an E3120 turbine at East Ash, in Bradworthy, held an investigation
after a 111ft (34m) turbine crashed to the ground on farmland
less than three years after it was commissioned.
Paul and Sarah Thomas, who live close to the turbine, contacted
the Journal and said they were confused by the term "technical
fault" and wanted answers.
Sarah added: "Our concerns for whatever reason it collapsed is
that it is the second one of that make to keel over, within a close
area and there is another just up the road that is very close to the
public highway. It doesn't bear thinking about if a blade flew off
that one.
"One thing that had been noticeable recently is that it sounded
like it was making a scraping noise as it turned, perhaps
questions should be asked about when it was last serviced as I
thought this had to be annually."
Source: http://www.northdevonjournal.co.uk/Safety-concerns-second-
wind-turbine-falls-North/story-28567918-detail/story.html
21/01/2016 Accident Type: Human Injury
Site/area: Freisen, Saarland Country: Germany
Turbine Type: Description Heftiger Stromschlag auf Windrad:
A 26-year old technician is in hospital after suffering a severe
electrical shock during maintenance work at a wind turbine in
Freisen. He came into contact with a 400 volt line in the turbine
gondola and had to be winched 100m to the ground by
colleagues
Source:http://www.saarbruecker-
zeitung.de/saarland/stwendel/freisen/freisen/Freisen-Kliniken-Maenner-
Windraeder;art446793,6040699
21/01/2016 Accident Type: Miscellaneous – Fatal (?) Site/area: North Sea of German coast Country: Germany
Turbine Type: Description Stephen O’Malley was throttled when his neck dam ring,
connected to his helmet, tightened as he worked in the North
Sea, off the German shore, more than three years ago. Last
September, at the 48-year-old’s inquest, Liverpool coroner Andre
Rebello described the initial investigation in Denmark and its
verdict as “bizarre and fanciful”.
He recorded a new ruling into Mr O’Malley’s death as hypoxic-
Induced cardiac arrest - because of an over-tight neck
equipment ring.
Now, after lobbying in parliament by Riverside MP Louise
Ellman, the State Attorney in Denmark has agreed to re-
examine the May 2012 tragedy.
Disturbing CCTV footage was played during September’s
inquest which showed the distressed diver shouting: “The neck
dam is restricting my breathing.”
Soon after, he said: “I can’t breathe with the neck dam. It’s
choking me.”
A colleague is heard to reply: “Just take your time Stephen,
orientate yourself and get your breath back.”
The diver was eventually pulled back onto the ship, but it
crucially took eight minutes and 35 seconds to summon a
supervisor to rescue him.
“The neck dam is restricting my breathing.”
Mr O’Malley, who lived in Liverpool city centre but was from
Bebington, was only two metres below the water’s surface, but
after colleagues struggled to locate the clip on his helmet, vital
time had been lost.
Nicola Braniff, Mr O’Malley’s girlfriend, today told the ECHO:
“The Danish authorities should know what we’re not going
away.
“This is about Stephen, and what happened to him.
“It’s horrible to think he went in that way.
Source:http://www.liverpoolecho.co.uk/news/liverpool-
news/tragedy-mersey-divers-wind-farm-10766771
23/01/2016 Accident Type: Environmental Site/area: Barbour County, West Virginia Country: USA
Turbine Type: Description The owner of a Barbour County wind energy facility has been
sentenced to pay $30,000 in fines after pleading guilty to two
federal charges related to the deaths in 2011 of hundreds of
migratory birds.
The company was sentenced to pay the maximum fine of
$15,000 for each of two misdemeanour counts of “unlawful
taking” of migratory birds, a crime under the Migratory Bird
Treaty Act. Charges were originally filed against AES Laurel
Mountain in late January and a sentencing hearing was held on
Feb. 12. Copies of legal briefs about the sentencing were
placed under seal, and were not available to the public on the
U.S. District Court for the Northern District of West Virginia’s
online computer system.
The case concerns events in October 2011 at AES Laurel
Mountain’s Battery Energy Storage System, or BESS, located near
the company’s wind power generation facility at Belington.
In court records, prosecutors said that the BESS complex included
24 rectangular structures which served as battery containers.
Surrounding the complex were five metal utility poles mounted
with eight 250-watt steady-burning, high-pressure sodium lamps.
“Essentially two-headed spotlights, the lamps emitted a white
light from dusk until dawn so as to illuminate the entire BESS
facility,” according to court records.
Prosecutors alleged that on Oct. 1 and Oct. 2, 2011, songbirds
migrating through the area became “trapped” in the light of the
BESS facility during weather conditions that featured fog and low
clouds.
“While flying through and around the complex, the birds collided
with battery containers and wires,” prosecutors alleged. “A total of
483 migratory birds died as a result of blunt force impact with an
object, lacerations, or exhaustion.”
Most of the birds killed were blackpoll warblers, according to
court records.
Τhe company had a legal duty to “implement
reasonable, prudent, and effective measures to avoid
or minimize the impact of lighting on migratory birds”
and to train and supervise employees” to comply with
the migratory bird protection law.
“In the absence of instruction, training or direction to the
contrary, employees in charge of operating and maintaining the
BESS complex kept the ... lights on all night every night,
automatically lit and extinguished by dust-to-dawn photo cells,
as a security measure,
Source: http://www.windaction.org/posts/44433-barbour-wind-power-
facility-sentenced-to-30-000-fine-for-bird-deaths#.V0hHkEyKTDd
24/01/2016 Accident Type: Fire
Site/area: Krensdorf, north Burgenland Country: Austria
Turbine Type: Description Fire at a new wind turbine transformer in Krensdorf. Three fire
crews comprising of 31 firefighters were required to put the fire
out over a 2.5 hour period on Sunday 24 January. The turbine
was in trial operation and has been taken off line
Source: http://burgenland.orf.at/news/stories/2754021/
26/01/2016 Accident - Incident Type: Human Health
Site/area: Blue Sky Green Field Energy Center, Country: USA
Turbine Type:
Description
A large wind farm in Fond du Lac County is causing concerns
for some local residents. The WE Energies Blue Sky Green Field
Energy Center has 88 turbines. It’ll be the focus of a county
health department meeting next week. The wind turbines have
been standing tall in the Town of Marshfield for the past eight
years. Since then, neighbours Elizabeth Ebertz and Joan
Lagerman say they’ve suffered a variety of health issues.
Fond du Lac County Health Department to investigate claims
by turbine neighbours of adverse health effects including high
blood pressure, stress, headaches, and sleep disturbance.
Source: http://fox11online.com/news/local/fox-cities/wind-turbines-
in-fdl-county-causing-concerns-for-some-residents
26/01/2016 Accident Type: Structural Failure
Site/area: Osnabrück, Paderborn district Country: Germany
Turbine Type: Enercon E-66
Description
In Germany a wind turbine collapses near Paderborn. Collapse
of Enercon E-66 wind turbine - the 100 tonne nacelle assembly
crashed to the ground with no obvious cause. No injuries were
reported. The turbine had been operational since 1996 and
Enercon specialist started an investigation to identify the root
cause of this catastrophic failure.
Source:http://www.noz.de/deutschland-welt/nordrhein-
westfalen/artikel/662994/windrad-bei-paderborn-
zusammengebrochen?piano_t=1
30/01/2016 Accident Type: Miscellaneous
Site/area: Mojave, CA Country: USA
Turbine Type:
Description
California Highway Patrol crews have shut down Oak Creek Rd on
Friday afternoon after they discovered that the wind turbines
were having some technical problems.
Officials noticed it on Oak Creek Road, located about five miles
west of the city of Mojave just before 10 a.m. and are working to
fix the problem. The roadway is shut down as a precaution while
crews work to fix the turbines. An official for the company says
the public isn't in danger and they hope to have the problem
fixed soon.
Source:http://www.turnto23.com/news/local-news/wind-turbine-
issues-shut-down-oak-creek-rd-in-mojave
03/02/2016 Accident Type: Transport Site/area: North Sea, Hvide Sande Country: Denmark Turbine Type: Description
No one was hurt in the crash. The driver is being cited for
careless driving. Officials said they will need to bring a crane in to
A truck was transporting the blade, and it collided with a barrier
on the side of the ramp and caused some damage, according to
Source: http://denver.cbslocal.com/2016/02/04/turbine-blade-rolls-
off-truck-on-highway-onramp
/
08/02/2016 Accident Type: Blaide failure
Site/area: Dineault, Brittany Country: France Turbine Type: Description
04/02/2016 Accident Type: Transport Site/area: City of Lone Tree Country: USA Turbine Type: Description
The ramp leading from eastbound C-470 to southbound
Interstate 25 was closed early on Thursday 04-02-2016 afternoon
while crews worked to clean up a crash involving a wind turbine
blade. A truck was transporting the blade, and it collided with a
barrier on the side of the ramp and caused some damage,
according to City of Lone Tree spokeswoman Kristen Knoll.
No one was hurt in the crash - however, the driver is being cited
for careless driving. Officials said they will need to bring a crane in
to clean up the scene.
The wind turbine installation platform "Sea Worker", which had
been aground for 7 days at Hvide Sande, Denmark, finally
capsized due to heavy weather. Her crew of 15 had been
evacuated beforehand. The biggest risk is environmental as she
has 40,000 to 50,000 gallons (178,000 litres) of diesel on board.
Source:http://www.maritime-executive.com/article/wind-farm-
installation-platform-capsizesshut-down-oak-creek-rd-in-mojave
08/02/2016 Accident Type: Fire
Site/area: Pontyates, Carmarthen, Wales Country: UK Turbine Type: Description Firefighters dealt with a wind turbine converter fire this
afternoon near Pontyates. One crew from Kidwelly arrived at
the scene at 1.56pm on Monday afternoon, where the fire was
alight. The crew used a dry powder extinguisher to dowse the
flames.
Source: http://www.carmarthenjournal.co.uk/Firefighters-battled-
wind-turbine-near-Pontyates/story-28692890-detail/story.html
At Dinealt, blades shattered by storm). Two blades broken in a
storm, parts of which were scattered, others remain hanging.
The turbine was one of the first installed in Brittany - in 1999
and had withstood the 2000 storm which was far worse. Winds
reached 160km/hr (100mph). A large piece of blade was found
40m from the turbine base (30m tip).
Source:http://www.ouest-france.fr/bretagne/chateaulin-
29150/dineault-les-pales-dune-eolienne-brisees-par-la-tempete-
4024792
09/02/2016 Accident Type: Blade Failure
Site/area: Meenanilta wind farm, Drumkeen Country: Ireland Turbine Type: Enercon E-84 Description A “severe” lightning strike has destroyed a blade on an Enercon
E-48 turbine at the 3.2MW Meenanilta 3 wind farm in Ireland’s
North West.
Enercon and the project’s operators, the Limerick-based
Windsource, have launched investigations into the incident
which occurred at the Donegal site last weekend.
A source told reNEWS that a “severe lighting strike”was to
blame with the 800kW turbine now out of commission until replacement rotor blades are
delivered. The Irish Wind Energy Association said it was aware of
the incident.
ENERCON says: “We are aware of the incident and are liaising
with the wind farm operator to ascertain the cause of this very
rare occurrence.
There is a rigorous process in place to ensure that installation
standards are strictly adhered to and incidents involving wind
turbines are extremely rare.”
It added: “The wind industry takes health and safety matters
very seriously and any incident is thoroughly investigated as a
matter of general protocol.”
Source:http://www.windaction.org/posts/44309-concern-
expressed-after-damage-to-wind-turbine#.V0hsn0yKTDd
12/02/2016 Accident Type: Blade Failure
Site/area: Madison County, NY Country: USA Turbine Type: GE Wind 1.5MW Description
According to Fenner Town Clerk Paula Douglas the town received
a call early this morning informing them that the blade had fallen
off the turbine and the manufacturer said they thought the cause
may be “bolt failure.”
Turbine no. 18 is different than the other 19 turbines at the wind
farm, being a new prototype design when it was installed after
the turbine collapsed in December 2009. Turbine no. 18 has
different shaped blades than the others and has its generator at
the bottom of the tower rather than at the top as the others do,
according to the board discussion.
The Fenner Wind Farm is owned by Canastota Wind Power LLC, a
subsidiary of Enel North America. The windmills themselves are
328 feet in height and each weigh about 190 tons. The farm’s 20
turbines are 1.5 megawatt GE turbines for a total power of 30
megawatts. The energy they produce is carried through the 6.6
miles of electrical cable that is located under the farm and they
produce enough energy for about 7,800 homes.
Source: http://www.windaction.org/posts/44335-113-foot-blade-
falls-off-fenner-windmill-bolt-failure#.V0hsfEyKTDd
19/02/2016 Accident Type: Blade Failure
Site/area: Sigel wind park, Huron County, Michigan Country: USA Description
Turbine blade separation reported in Sigel Township.
No one was injured when one blade fell off the turbine at about
3:15 p.m. The turbine automatically shut down after the incident.
The land owner notified the Wind Energy crews. Cause of the
incident has not been determined. Photographs submitted to
WLEW News by Kelly Zurek appears to show that at least a portion
of the blade did not fall to the ground but instead partially
wrapped around the turbine possibly damaging the turbine
housing.
Source:http://www.windaction.org/posts/44362-turbine-blade-
separation-reported-in-sigel-township#.V0hz1UyKTDe
A 113-foot blade from a wind turbine in the Fenner Wind Farm
came unattached to its tower and plummeted 213 feet to the
ground. No people were injured and no property was damaged,
according to Fenner town officials.
There were two big booms when it happened, one when it hit
and then another when it probably flipped over,” said Fenner
resident Dick Foringer, who lives across Buyea Road from turbine
no. 18, about 900 feet away. “We didn’t know what it was.”
20/02/2016 Accident Type: Fire
Site/area: Illinois Country: USA Description
A wind turbine in northern Livingston County caught fire
Friday 20-02-2016.
The turbine was about five miles southeast of Odell, according
to a spokesman for Iberdrola Renewables, the energy
company that runs the Streator Cayuga Ridge wind farm. The
150-turbine farm runs from the La Salle-Livingston County
line south into Livingston County. Firefighters responded and
there were no injuries. The fire was out by late Friday
afternoon, with its cause under investigation. The line of
turbines was shut down as a precaution while the fire was
burning. Streator Cayuga Ridge began operating in March
2010
Source:http://www.noz.de/lokales/doerpen/artikel/674259/wind
kraftanlage-bei-dorpen-beschadigt#gallery&0&0&674259/
was 10 years old. Other turbines at the same site appear to
be undamaged.
Firefighters responded and there were no injuries. The fire
was out by late Friday afternoon, with its cause under
investigation. The line of turbines was shut down as a
precaution while the fire was burning. Streator Cayuga Ridge
began operating in March 2010
. All three blades appear to have been shredded by the wind.
The The
accident happened on Saturday 20 February. The turbine was
Source:http://www.windaction.org/posts/44372-wind-turbine-
catches-fire#.V0h0sEyKTDd
21/02/2016 Accident Type: Human Injury
Site/area: Gunfleet Sands offshore wind farm, Essex coast Country: UK Description An Air Sea Rescue helicopter was called in to airflift an injured
man from a wind farm off the Essex coast last night.
The man was working on a jack-up rig at the Gunfleet Sands
wind farm five kilometres off Clacton when he suffered a badly
lacerated leg. The Air Sea Rescue helicopter flew from Lydd in
Kent to pick up the man and fly him to Colchester Hospital.
Source:http://www.itv.com/news/anglia/update/2016-02-
21/injured-man-airlifted-from-offshore-windfarm/
22/02/2016 Accident Type: Blade Failure
Site/area: Dorpen, north Emsland Country:Germany Description
Report with video links to damaged wind turbine at Dorpen.
All three blades appear to have been shredded by the wind.
The accident happened on Saturday 20 February. The turbine
was 10 years old. Other turbines at the same site appear to be
undamaged.
Source:http://www.windaction.org/posts/44413-wind-turbine-
comes-down-during-winter-storm-early-thursday-
morning#.V0h8CkyKTDd
Source:http://www.windaction.org/posts/44417-400-foot-wind-
turbine-falls-in-huron-county#.V0h8BUyKTDd
25/02/2016 Accident Type: Structural Failure
Site/area: Harvest wind farm, Elkton, Huron County, Michigan Country: USA Turbine Type: Vestas V82 - 1.65MW Description
A nearly 122 meters height, wind turbine has fallen down
on a farm field at the site of the state’s first utility-scale
wind project.
The turbine's tower is made of steel with three fiberglass
blades, according to Exelon. It came down near the Berne
and Gagetown roads intersection in Section 6, the
northwest corner of the township.
"An incident like this has not happened at an Exelon wind
farm," said Kristen Otterness, communications manager
for Exelon, which has 47 wind projects across the country
in 10 states. There were no injuries to employees or the
public, Otterness said. She says the area around the
turbine has been roped off and is in a safe and secure
condition.
Oliver Township Supervisor Larry Krohn said it came down
at about 5:20 a.m. in the middle of the field. The fall marks
the second incident in less than a week in which a wind
turbine has failed. The fallen turbine is part of Exelon Wind
Generation’s 32-turbine Harvest Wind Farm, the first
utility-scale wind project built in Michigan. It began
operation in 2008. Krohn says he hasn’t seen any damages
other than to the wind turbine itself.
The turbine's tower is made of steel with three
fiberglass blades, according to Exelon. It came
down near the Berne and Gagetown roads
intersection in Section 6, the northwest corner of the
township.
"An incident like this has not happened at an Exelon
wind farm," said Kristen Otterness, communications
manager for Exelon, which has 47 wind projects
across the country in 10 states.
There were no injuries to employees or the public,
Otterness said. She says the area around the turbine
has been roped off and is in a safe and secure
condition.
29/02/2016 Accident Type: Miscellaneous
Site/area: Krampfer wind farm, Southern Germany Country: Germany Description
A wind-turbine construction accident occurred in Southern
Germany. Workers of the Hamburg-based Nordex company
were operating a large hoisting crane by remote control as it
lifted the 60-tonne wind turbine rotor assembly for mounting
onto the 200-meter tall tower.
At 60 meters height the entire assembly came crashing down
onto the earth below. According to an eyewitness, a gust of
wind may have caused the rotor to strike the tower before
falling. The SVZ reports that the impact likely caused
irreparable damage to the structure’s foundation, and so the
entire turbine unit will have to be rebuilt complete from
scratch. Damage is estimated to be in the hundreds of
thousands of euros. No one was injured.
The accident is now under investigation and a construction
strop has been ordered until the cause of the accident is
determined. The SVZ writes that the estimated cost of a new
wind turbine is near 5 million euros.
Source:https://stopthesethings.com/2016/03/18/germany-60-
tonne-wind-turbine-rotor-crashes-to-earth/
04/03/2016 Accident Type: Logistic
Site/area: South Quay, Great Yarmouth, Norfolk Country: UK Description
"Great Yarmouth 'gridlock' as turbine falls off lorry". Part
of a wind turbine "fell off" a transport lorry on South
Quay and rolled onto the pavement. Damage to the
road is still to be assessed Luckily, no-one was injured.
Source: http://www.bbc.com/news/uk-england-norfolk-35726492
08/03/2016 Accident Type: Miscellaneous Site/area: Bayonne, New Jersey Country: USA Description The massive blades of the city's dormant wind turbine have
been lowered to the ground as workers continue to carry out
repairs that began last week.
Bayonne Municipal Utilities Authority Executive Director Tim
Boyle said today that it's taking workers "a little bit longer"
than expected to switch out the turbine's broken bearing with
a new one.
The turbine's three blades had to be lowered to the ground by
an enormous crane last Thursday in order for workers to get
access to the bearing that needs to be replaced, Boyle
explained. The 260-foot turbine at Oak and Fifth streets has
lost the city over $200,000 in energy savings since it broke
down last June. It was originally scheduled to be repaired in
November, but repairs were delayed multiple times.
Every month that the turbine goes unrepaired costs the city
roughly $25,000 in energy savings, Boyle has said. Assuming
the turbine is fixed by the end of March, the money lost in
energy savings would total about $225,000. SUEZ, formerly
United Water, monitors and maintains the turbine under a 40-
year deal with the city MUA, which maintains ownership of it.
Boyle has said repair work on the turbine is weather-
dependent because if winds are too blustery, attempting to
remove the blades would be dangerous. The ongoing work
isn't expected to affect traffic in the area, he said.
The MUA official has said questions about what caused the
turbine to break down, and who will be paying for the repair
work and replacement part are premature, given that the
broken bearing still has to examined by engineers. Boyle said
Leitner-Poma America, based in Colorado, is leading the repair
work on the turbine. Leitwind, an Italian manufacturer of wind
turbines affiliated with Leitner-Poma America, is the company
that made the turbine.
Source:http://www.windaction.org/posts/44506-bayonne-wind-
turbine-s-massive-blades-removed-as-repairs-continue#.V0iB90yKTDd
16/03/2016 Accident Type: Miscellaneous
Site/area: Kilvinane, County Cork Country: Ireland Description
Court rules in favour of order to dismantle three wind
turbines". Court rules to dismantle three wind turbines
which were constructed in the wrong locations.
Two of the three turbines were constructed with blade lengths
of 90m, 23m longer than planning permission specified.
And all three turbines were constructed more than 20m
from their approved locations.
Source:http://www.windaction.org/posts/44563-court-rules-in-
favour-of-order-to-dismantle-three-wind-turbines#.V0iDRUyKTDd
19/03/2016 Accident Type: Blade Failure
Site/area: Nova Scotia Country: Canada Turbine Type: Vestas V-80 1.8MW Description
Eyewitness report of "distressed blade" which was bending
then broke. The nearby walking trail was closed to the public.
This is one of 17 78m high Vestas V-80 1.8MW turbines on the
site, operational since 2005.
The wind farm is owned and operated by NextEra Energy
Resources. The company's director of communications, Steve
Stengel, says the company is looking into what happened.
"The next steps include conducting an investigation into the
cause of the blade issue – that is already underway – and
getting the necessary equipment to the site to remove the
damaged blade. I don't have the timing on that at this point,"
he said Sunday.
The site has been secured. For safety reasons, a section of the
road that leads to the wind farm was barricaded on Sunday to
prevent curious onlookers from getting too close to the site.
There is a walking trail at the wind farm site.
There was a steady stream of people driving to the site to get a
closer look at the blade.
Source: http://www.thevanguard.ca/News/Local/2016-03-20/article-
4472202/Damaged-wind-turbine%3A-Like-thunder-out-of-the-clear-
blue-sky-says-Pubnico-Point-resident-describing-sound/1
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