Hydroelectric Power Plants – Risk and Loss Prevention

Risk drivers

Beyond the machinery risk of turbines, generators and transformers in the powerhouse, the dam, weir, headrace and surge tank shape the overall risk profile of a hydroelectric plant. Sediment, floating debris and ice can damage trash racks and turbines, while extreme flood events can threaten the structural stability of dams and embankments. Cavitation on runners and erosion damage from sediment-laden water are among the most frequent causes of unplanned turbine overhauls.

Protection measures

Key measures include a regular monitoring and inspection programme for dam structures, including deformation measurement, trash-rack cleaning adapted to sediment loads, spillway capacity sufficient for design flood events, and condition monitoring of runners and bearings for early detection of cavitation damage. Dam safety is subject to dedicated regulatory oversight in many countries in addition to general plant supervision.

Insurance relevance

Because turbines often remain in service for decades and many machine sets are unique, spare-parts procurement and repair duration after a loss are key factors in business interruption assessment. Property insurers reviewing the risk pay particular attention to the condition of the dam structure, the flood protection concept and documentation of recurring dam safety inspections.