A report from insurer GCube paints a mixed picture of the recent performance of the offshore wind sector.

As the industry pushes to ‘go higher’, with the deployment of larger, higher capacity turbines that ush the limits of engineering, GCube’s Vertical Limit report has noted significant concern from risk management professionals across the on- and offshore wind sector that this ambition is coming at the cost of one too many “hair-raising” moments.

An unprecedented number of mechanical breakdowns, component failures and serial defects are damaging the profits of manufacturers, placing pressure on the supply chain to keep up and leading to mounting project delays. High winds have not helped, and the design of some systems will need revision.

While there is currently no shortage of capacity in the market, insurers are now reconsidering the risks of underwriting larger, newer offshore wind turbines. Participation in the offshore wind market has become a risky business for insurers, not only for insurers, but also manufacturers, developers, and supplier companies – with some now facing a material risk to their survival.

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