Repowering Wind Farms: Opportunity, Risk and the Insurance Considerations

Why asset owners choose to repower

End-of-life operational risk

As wind turbines move beyond their intended design life, the risk profile of the asset changes. Mechanical fatigue, component failure and increasing maintenance costs can reduce reliability and increase downtime.

At a certain point, operators often find that replacing turbines with modern technology becomes more cost-effective than continuing to maintain ageing equipment.

Technology advancement

Wind turbine technology has developed significantly over the past two decades. Modern turbines are larger, more efficient and capable of generating significantly more electricity from the same site.

Newer turbines can generate more than three times the power output of older models while operating for up to 35 years (WindEurope, 2024). This makes repowering an attractive option when combined with evolving electricity pricing and long-term energy demand.

Lower planning and community barriers

Repowering existing sites often faces fewer planning challenges than developing new wind farms. Communities are typically already familiar with the presence of turbines, and upgrades may actually reduce the number of turbines while increasing generation capacity.

This can minimise environmental disruption while maintaining local renewable energy production.

Existing infrastructure advantages

Another key advantage is the ability to reuse much of the existing infrastructure, including:

• Grid connection points
• Substations
• Underground cabling
• Site access roads
• Established delivery routes for heavy equipment

This can significantly reduce development timelines and costs compared with building a new project from scratch.

Circular economy and sustainability

Repowering can also support sustainability goals. Many turbine components can be recovered, refurbished or recycled, reducing waste and allowing materials to be reused across other energy or industrial sectors.

Key risk and insurance considerations

While repowering offers clear operational and commercial benefits, it also introduces a complex risk profile that asset owners should carefully manage.

Construction and dismantling risks

Repowering projects typically involve:

• Dismantling existing turbines
• Transporting larger and heavier turbine components
• Installing taller and more powerful turbines

This means the project risk profile often resembles a major construction project, requiring careful planning and appropriate insurance coverage.

Updated site and route surveys are particularly important to confirm that delivery routes can safely accommodate larger turbine blades, towers and nacelles. In some cases, road upgrades or logistical modifications may be required to mitigate transportation risks.

Marine and cargo exposures

Transporting turbine components - often across international supply chains -introduces additional exposure to physical damage during transit.

Cargo insurance can protect against loss or damage during transportation, while project-specific cover can be arranged to protect equipment during storage and installation.

Delay risks and revenue protection

Repowering projects can also impact revenue streams. Once the existing turbines are decommissioned, energy generation and associated revenue will temporarily stop until the new turbines become operational.

Insurance solutions such as Delay in Start-Up (DSU) cover can help protect asset owners from financial losses caused by project delays, such as late equipment delivery, construction setbacks or insured physical damage during installation.

Managing mixed operational and construction exposures

One practical approach during repowering is a phased replacement strategy, where part of the wind farm continues to operate while other turbines are replaced.

This approach can help maintain partial revenue generation, but it also introduces a complex insurance scenario involving both operational and construction exposures on the same site. Specialist insurance structuring is often required to ensure appropriate protection throughout the transition period.

Our specialist energy team is here to help

For support reviewing the risk and insurance considerations around repowering wind assets, our specialist energy team would be pleased to discuss your project requirements.