power risk engineering report - cermpakistan.com

Center for Enterprise Risk Management

Power Risk Engineering Report:Key Information Guidelines for Insurance Risk

Assessment

Ahsan Jamal

Risk Engineer

AgendaIntroduction

General Principles

Key Information Requirements

- Executive Summary

- Plant Status

- Exposure Assessment

- Loss Prevention

- Loss Mitigation

Risk Improvement Recommendations

IntroductionPurpose

Outline Key Information requirements for Power Risk Engineering Reports

Provide guidance to:

Risk Engineers

Underwriters

Insurance Managers

Plant Engineers

IntroductionScope

Outline STANDARD information for Power Risk Surveys

Identify KEY items of interest to (Re)insurers

Developed by Lloyd’s Market Association (LMA) + London Market

Engineers

General Principles

Primary customer

Report length

Evidence based opinion

Implementation and compliance

Information not provided

Performance data

Pitfalls to be AVOIDED

X Lengthy narrative

X Repetition

X Creep

X Generic text

IntroductionPerformance data: Examples

Operational Stats

Key Performance Indicators


Executive Summary

Introduction

Purpose & Scope

Date and duration

Previous survey information

Key survey participants


Executive Summary

Overview

Brief history, year built, COD

Brief Plant description

Site location & NATCAT exposures

Ownership & management

Future development projects / upgrades


Executive Summary

Comments and conclusions

Strengths and Risk Improvement areas

Engineering issues – equipment hardware

Management systems

Loss history (last 05 years)


Plant Status

Site description

Site aerial view

Site geo-coordinates

Total area

Third party exposures

Plant A


Plant Status

Plant description

Site history

Ownership

O&M contract

COD

Plant upgrades

Construction [Foundation details, Use of any flammable materials]


Plant Status

Plant description

Layout drawing (scaled)


Plant Status

Plant description

Spatial separation & segregation

Fuel handling

Storage facilities

Powerhouse

Switchyard

Boilers

Turbines

Transformers


Plant Status

Plant description

Containment / Drainage for main flammable substances

Turbine generator lubricating oil tanks

Generator seal oil skids

Turbine control oil skids

Hydrogen for generator cooling


Plant Status

Plant description

Cable tunnels / Cable spread rooms


Plant Status

Plant description

Control Room

Design & location

Control systems hardware

Age

Availability of spares & obsolescence

Shutdown & emergency control systems

Boiler burner management & flame monitoring system


Plant Status

Plant description

Advanced monitoring systems

Online vibration monitoring for turbine generators

Transformer online DGA

Generator online PD monitoring


Plant Status

Plant description

Fuel storage & Handling facilities

Bunding arrangement


Plant Status

Plant description

Major equipment

GTs

ST

Boilers

HRSGs

Transformers


Plant Status

Plant description

Balance of Plant (BOP)

Redundancy (e.g. 2x100%)

Spares availability


Plant Status

Plant description

Loss and Incident History

Incident / Loss description

Date of loss

Amount of loss (including < deductible)

Loss history (up to 5 years)

Loss causation / RCA


Exposure Assessment

Exposures

Fire & Explosion

Technology risks

NATCAT (including physical & procedural controls)

Flood zone (historical flooding)

Third party operations (onsite / offsite)


Exposure Assessment

Exposures

NATCAT

Key Information RequirementsExposure Assessment

Values

Property Damage (PD)

Insurance valuation

Industry benchmark

Breakup of values

Basis of values used in EML / MPL calculations

Business Interruption (BI)

Basis of BI sum insured (e.g. gross profit)

Take or Pay agreement

Seasonal impact on BI exposure


Exposure Assessment

Loss Estimates

EML / MPL

Catastrophic / worst loss event

All active protection systems are non-operational


Exposure Assessment

Loss Estimates

EML / MPL

Loss Estimate Scenario PD

(USD

million)

BI

(MW / months

/USD million)

Combined PD+

BI

(USD million)

Property Damage Fire involving gas

turbine and HRSG

66 130 MW / 6

months / 100

166

Machinery

Breakdown

Steam turbine generator

foreign object damage

100 130 MW / 18

months / 300

400


Loss Prevention

Management & Organization

Site Organogram (high level positions)

Recent or proposed changes

Adequacy of staff in critical positions

Staff turnover

Staff training & background

Management of Change (MoC) procedure

Management procedures


Loss Prevention

Operations

Organization

Shift operations

Staff average experience

Shift handover procedures

SOPs and drawings

Certifications (ISO 9001, 14001 & OHSAS 18001)

Technical support


Loss Prevention

Operations

Training & Competence Assurance

Training & certification process

Competency definition & assessment

Refresher training program for critical SOPs


Loss Prevention

Operations

Permit to Work (PTW)

PTW system (existing v/s industry best practice)

Compliance (Audit process & KPI)

Housekeeping


Loss Prevention

Operations

Equipment Isolation

Procedure (existing v/s industry best practice)

Compliance (Audit process, documentation review)


Loss Prevention

Operations

Operational Testing Routines

Details & frequency of testing regime

Turbine over speed trips

DC emergency oil pumps

Emergency generators (full load)


Loss Prevention

Maintenance

Organization

Organogram (no. of staff)

Vacant position & staff turnover

Experience level

Maintenance planning – CMMS

Major overhaul plan (schedule, frequency etc.)

Third party contracts / QA

Long Term Maintenance Agreements (LTMA) / Parts Supply Agreements

Maintenance training


Loss Prevention

Maintenance

Boilers, HRSGs and Pressure parts

Major / minor outages (scope, frequency, last outage)

Statutory inspection

NDT routines, tube thickness check

Creep life assessment

Pressure relief valves / pressure vessels / pipe hangers and supports

Recommended Codes

Procedure & control for qualified welder

Key Information RequirementsLoss Prevention

Maintenance

GTs & STs

Inspection regimes

Borescope

Combustion / Major Inspections

Hot Gas Path

Last overhaul report

Use of OEMs / Specialist contractors

Long Term Service Agreements (scope, on-site team, remote monitoring)

Any upgrades / modifications

OEM Technical Advice (TILs, SBs)


Loss Prevention

Maintenance

Transformers

Insulation oil analysis; DGA frequency / results + Testing lab

Corrosive sulphur analysis

Electrical testing


Loss Prevention

Maintenance

Preventive Maintenance Routines

Vibration monitoring

Thermographic surveys

Lubricating oil analysis

SCOPE

FREQUENCY

INTERNAL / EXTERNAL

REVIEW LAST REPORTS


Loss Mitigation

Fire Protection & Emergency Response

Organization & Emergency planning

Onsite / Offsite + Mutual Aid assistance

Training program [frequency, KPI]

Fire-Pre plans

Quality of Emergency Response Plan – NFPA 1600

Emergency scenarios considered

Emergency response exercise [frequency, major findings, evacuation time etc.]


Loss Mitigation

Fire Protection & Emergency Response

Active Protection

Fire water system

Redundancy

Adequacy of fire water supply

Fire pump capacity / reliability / certified / Testing

Detection system

Adequacy of fire / smoke / gas detection & alarm system

Testing & maintenance

Fixed fire protection system

In accordance with NFPA 850

Fixed Fire Detection & Protection Systems


Risk Improvement Recommendations

Identify issue

Recommendation [standards / best practices]

Outstanding recommendations - status

Client response

Status flag [No action / Completed / In-progress / Withdrawn]

Oceanic House Mezzanine Floor 6-E

Street 11 Badar Commercial Phase V Ext. D.H.A. Karachi – 75500 Pakistan

Tel: +92 21 35244160 – 2 Email: [email protected]

Web: www.cermpakistan.com

Center for Enterprise Risk Management

THANK YOU

power risk engineering report - cermpakistan.com

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