Solar storms to hailstones: building renewables that last for decades to come

Investors demand it, the world needs it: looking for resilience in renewable energy.

A strategic approach, client-centric philosophy and lots of engineering expertise are the three principal propositions underpinning FM’s plans to expand its renewable energy services into Europe and beyond.

In an exclusive interview with Intelligent Insurer, Doug Patterson (pictured), the company’s senior vice president of forest products and FM renewable energy, shared some insights about its leading initiative to ensure the sector is not only durable but also resilient in the face of mounting challenges.

“Every client we have – anywhere in the world – is reliant on renewables.” 

“The majority of our clients are investing in renewables in some way, shape or form,” Patterson said. 

“Every client we have – anywhere in the world – is reliant on renewables.” 

This demand stems from the global transition from older power sources such as coal and natural gas to renewables, a shift accelerated by the exponential growth in electricity demand fuelled by advancements such as AI.

FM’s decision to launch its renewable energy group in Europe follows a methodical expansion, as Patterson explained: “We started in the US mid-last year and are now launching in Europe.” 

“Our clients in the US have different needs than those elsewhere in the world, so we are strategically moving into other territories.”

This deliberate approach underscores FM’s aim to offer tailored solutions to specific regional needs.

Long-term view essential

Patterson highlighted FM’s distinct approach to operational policy in renewable energy: “The biggest differentiator for FM in this space is not necessarily the words in the policy,” he stated.

“It is the ability to help our clients design, build and operate projects from a risk avoidance, resilience or loss prevention angle.”

He spoke of the importance of durability in renewable energy equipment, pointing out specific vulnerabilities such as the inherent susceptibility of solar panels to hail damage. 

“We use our research to understand the durability and resilience of solar panels and work with manufacturers to build them stronger,” Patterson explained. 

“Renewables projects are built to last 20 or 30 years, compared with older technologies that could last 50 to 70 years. 

“For renewable energy to truly advance, generation equipment needs to be as reliable as what it’s replacing.”

One of the most pressing challenges Patterson identified was building resilience into projects where the required durable equipment might not yet exist. 

“To improve equipment, you need to have a market need,” he said. 

Another major challenge is financing, where resilience plays a crucial role. 

“Investors want to know that their hard-earned money is protected,” Patterson noted, “and durability and resilience are key factors investors consider when choosing between projects.” 

“If one project is built with better equipment and is less prone to natural catastrophes, it’s more likely to secure funding.”

Science and engineering take the lead

FM’s 200-year legacy of focusing on loss prevention, rather than recovery, is foundational to its approach. 

“Our research scientists’ job is to look at fundamental risks, interact with industry groups and manufacturers and create solutions,” Patterson explained. 

“Understanding the root causes of losses is imperative; if your only solution to mitigate the risk in your company is insurance, you're missing a great opportunity. 

“it’s proven to make sense to invest in preventing the loss.”

In practical terms, FM’s engineers work with clients through every stage of a project’s lifecycle, from site selection to equipment choice and operational advice. 

Patterson offered an example from solar projects: “The type of solar panel matters greatly in terms of durability to hailstones. 

“There are panels that can be mounted on trackers that not only follow the sun but also tilt to minimise damage during storms.”

A global survey conducted by FM highlighted the renewable energy sector’s risk exposure and the importance of resilience. 

“Managing risk during construction and operation is critical,” Patterson said. 

“Durability and design matter at every phase operation, financing, construction and risk management.” 

The survey confirmed that investors prioritised resilience when deciding where to allocate capital.

More collaboration needed to ensure durability

Patterson emphasised the vital role of collaboration in advancing resilience in renewable energy. 

“The best solutions often come when we’re all working together,” he stated. “This involves partnerships with industry groups, equipment manufacturers and brokers.” 

Collaboration ensures the development of more resilient equipment and helps set industry standards, according to Patterson, who illustrated the importance of such partnerships with equipment manufacturers. 

“We can easily consult with clients and say, ‘buy a solar panel that does this,’ but if nobody makes that panel, it doesn’t work. 

“By collaborating with manufacturers, we encourage the development of products that are more durable and market competitive.”

As renewable energy continues to replace traditional power sources, ensuring its reliability is fast becoming a global necessity.

“Renewable power needs to be as, or more, reliable as the power sources it’s replacing,” Patterson asserted. 

“With escalating demand, it’s a global imperative for renewable energy to be dependable.”

Read FM’s full renewable energy sector report here.

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