Onshore Energy Conference — London Onshore Energy Conference — London | Page 37

POWER MARKET CONSTRUCTION DIVISiON Mineral insulating oil A ppropriate risk management is essential to placing appropriate construction insurance, in the power and energy sector one of the risks exposed is the flammability of the insulation fluids used. Insulation fluids are used on a large scale in electrical equipment such as power transformers and substations equipment. Mineral Insulating Oil is the main fluid used in insulation purposes. It is a stable, biodegradable, low viscosity, inactive oil. Mineral oil exchanges heat easily inside equipment so is used in electrical insulation and heat refrigerants, without fear of the oil attacking the equipment itself. Despite the benefits it poses for insulation, mineral oil is not environmentally friendly. It has a highly soluble nature for a hydrocarbon and its low biodegradation rate provides it with the ability to infiltrate rain water, contaminating soil and surface water as a result. EXAMPLE 1: Every 1kg of oil spilled into a reservoir leads to five million litres of water unfit for consumption. Not only does this create substantial damage to human life and the surrounding environment, but the remedial costs. The risk of contamination is at its highest during the operational stage of hydroelectric plants. These are always situated in lakes and rivers, creating considerable environmental risks. EXAMPLE 2: Each power plant transformer that carries and utilizes oil carries an average between 25,000- 70,000 litres as several of these transformers are installed at each hydroelectric plant, the risk of spillage and contamination becomes increasingly significant. CASE STUDY – MINERAL OIL AND ASKAREL Askarel is categorised as a persistent organic pollutant. It is non-biodegradable, highly toxic, corrosive and combustible substance. It is also carcinogenic and mutagenic; it can therefore cause major damage to both human life (such as irreversible damage to the central nervous system) and the environment. Askarel has been used as insulating oil in distribution and generation systems, and particularly in developing countries, cross contamination with Mineral Oil transformers has been recorded. This poses a significant threat. Each company operates thousands of transformers, making it very difficult to detect contaminated equipment and to control the fluid exchange process. So what can we do to limit the risk of such catastrophes? Other oils have been suggested to replace Askarel and other damaging mineral insulating oils, but so far no definitive decision has been made. Other options have been altering the containers themselves to be able to take hold of insulating oils, reducing the fire risks.