Wind turbines warranties – how do they work and what do they cover?

What is covered by a wind turbine warranty?

AXIS Head of Engineering, Renewable Energy Daniel Stevens, Head of Engineering explains:

Overview

• A warranty is provided by the Original Equipment Manufacturer (OEM), guaranteeing turbines are free from defects and poor workmanship over a specific period.
• Warranties are normally 2-3 years onshore and up to 5 offshore.
• Warranties do not normally include external cables and transformers.
• The warranty usually includes an initial service term, during which time the OEM carries out the operations and maintenance (O&M).
• Additional warranties may guarantee the availability of the wind farm and the power performance of the turbines.

The Defect Warranty

The defect warranty typically covers the following components:

• Blades and pitch system components
• Bearings
• The gearbox
• The generator
• Yaw system components
• The converter

The defect warranty is conditional on the Wind Turbine Generator (WTG) servicing being carried out by the OEM.

A further warranty is usually provided on any repairs or replacements carried out.

Serial defects

Serial defects are identical, or similar, defects which occur on an agreed percentage of WTGs at that wind farm.

If enough failures occur, the OEM must carry out a root cause analysis to determine if the reason for the failure is common across all the broken components.

If it is, the OEM must replace or repair that component on all the other WTGs on site, even if they have not yet failed.

Any revenue lost due to a defect, or the time taken to repair it, is not compensated by the OEM.

Warranty exclusions

Warranties do not cover damage caused by improper operation of the wind turbine, or damage caused by:

• Industrial action
• Terrorism
• Extreme weather

Damage caused by wind conditions outside the operating limits of the WTG (such as extreme wind speeds) are also excluded.

These exclusions are typically covered by the insurer.

Conclusions

• Warranties only last the first few years of a project’s life.
• Defects, limits of liability and damage exclusions may vary.
• There may be potential exposure to additional costs.

If you would like to talk to Daniel Stevens, Head of Engineering, Renewable Energy at AXIS, CLICK HERE, leave a message and youTalk-insurance will pass your enquiry on