Floating solar makes waves

‘Floatovoltaics’ are solar photovoltaic (PV) panels that float on a body of water, usually unused, like coal quarries, mineral extraction pits, or reservoirs. They are a much-tipped route to clean energy, but they also have advantages over conventional PV panels mounted on land or rooftops.

Their construction on unused water opens up opportunities for solar installations, particularly where space is constrained, while avoiding the contentious prospect of building on agricultural or residential land.

In western Germany, renewable energy developer BayWa r.e. recently built the country’s largest floatovoltaic plant for Quarzwerke GmbH, which produces mineral resources. The plant’s 5,800 PV modules are set on a lake next to the company’s factory premises in Haltern am See and will have an output of around 3MWp, producing 3mn kilowatt hours of electricity per year – an annual saving of 1,100 tonnes of carbon dioxide compared to fossil fuels.

AGCS was lead insurer, and risk consultants worked closely with BayWa r.e. from an early stage to carry out risk analyses, identify potential areas of concern during construction, and collect data. PV systems are generally resilient to damage, but storms and hail pose the greatest risk, along with incidents related to electrical or technical equipment. 

“Risk engineers also focus on the panels’ anchoring system,” explains Oliver Höck, Senior Risk Consultant at AGCS. “This is a technology we are familiar with from other marine applications. However, if it is defective, panels can become detached and driven by wind or waves on to land or against other panels, leading to a major loss. Other common risks include damage during maintenance, perhaps when personnel climb on the systems, and theft, which can occur during construction, leading to delays in completion. Snow loads and UV radiation damage to cabling can also be hazards, but after analysis of the BayWa r.e. design, we did not deem these a significant risk,” adds Höck.

The design had other benefits too – the floatovoltaics are positioned to let light and air reach the water, which can flow naturally, to the benefit of local flora and fauna. The panels also minimize water evaporation and can protect against harmful algal blooms.

“Floating PV offers an attractive investment opportunity for companies in the raw materials and building materials industry, which often own water areas that are lying fallow or only partially used,” says Stephan Auracher, Managing Director, BayWa r.e. Power Solutions GmbH. “These hold immense potential for the energy transition.”

Lena Bieringer, Regional Expert Green Energy in Central Eastern Europe, AGCS, adds: “Despite these positive attributes, the potential loss patterns show the complexity of the green energy business and highlight the importance of a strong, technically experienced and globally active partner like AGCS. Our expert risk consultants have worked with BayWa r.e. from the outset, providing insurance coverage for prototype equipment through to supporting the company’s ongoing expansion and growth strategy.”