Industry trade body Global Underwater Hub (GUH) has warned that underwater cable failures risk derailing global offshore wind ambitions.
The group warned that while reliability of subsea cables is “paramount” to the success of offshore wind, failure of these cables is all too common, to the point that the cost of insuring them is becoming prohibitive.
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 £9m.
“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.”
A recent report from Allianz Capital warned that damage to cables is the top cause of insurance claims in the offshore wind market, accounting for 53% of claims by value from 2014 to 2020.
GUH has established the Subsea Cables Forum to bring industry together to develop a roadmap for improving the quality, reliability, and therefore insurability, of cables which is crucial to achieving global offshore wind ambitions, particularly in the nascent floating offshore wind arena.
Gordon added: “There is an urgent need for a holistic approach to finding solutions which can be implemented as offshore wind increases in scale and technical capability with higher voltages and dynamic elements.”