QPPIP Glossary

Clear explanations of quantum computing and power plant insurance terminology

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Getting Started

Installation Setup

The process of setting up QPPIP on your local system or server. QPPIP requires Python 3.8+ and automatically installs quantum computing libraries (Qiskit) and data visualization tools (Matplotlib, Plotly).

Quick Install: Run pip install -r requirements.txt in the QPPIP directory to install all dependencies.
Quick Start Tutorial

A streamlined guide to running your first QPPIP analysis. Execute the main script to generate a complete risk assessment for your power plant, including quantum simulations and insurer quotes.

Run Analysis: python qppip.py --plant combined_cycle --capacity 500
Configuration Settings

Customizable parameters that control QPPIP behavior: number of qubits (default 26), simulation shots (default 16,384), plant type, and capacity. Higher shots increase accuracy but require more computation time.

Parameters: --qubits (1-26), --shots (1000-100000), --plant (combined_cycle, coal, gas, nuclear, wind, solar)

Risk Domains

Boiler & Pressure Vessel Risk Equipment

Risk assessment for pressure-containing equipment including boilers, heat recovery steam generators (HRSG), and pressure vessels. Factors include age, operating pressure, inspection history, and material condition.

Key Metrics: Pressure (PSI), Age (years), Inspection cycles, Condition score (0-1)
Turbine & Generator Risk Equipment

Risk evaluation for rotating machinery including gas turbines, steam turbines, and generators. Critical factors are operating hours, vibration levels, and overhaul history.

Warning Signs: Vibration > 0.5 mil, Operating hours > 100,000, Missed overhauls
Electrical Systems Risk Infrastructure

Assessment of electrical infrastructure including transformers, switchgear, and protective relays. Key concerns are transformer oil condition, dissolved gas analysis (DGA), and arc flash potential.

DGA Results: Normal (low risk), Caution (monitor), Abnormal (high risk)
Environmental Risk Compliance

Environmental liability exposure including emissions, spill history, and permit compliance. Coal and oil plants have higher environmental risk than gas or renewable facilities.

Risk Factors: Emissions permits, Spill history, Waste handling, Water discharge
Business Interruption Financial

Financial loss from unplanned plant outages. Calculated based on capacity, market prices, and outage duration. BI coverage typically includes a waiting period before claims begin.

Calculation: 500 MW x 24 hrs x $50/MWh = $600,000/day revenue at risk
External Perils Hazards

Risks from external sources including natural catastrophes (hurricane, earthquake, flood), cyber attacks on SCADA/DCS systems, and grid failures from transmission events.

Examples: Hurricane damage, Cyber intrusion, Grid blackout, Terrorism

Quantum Computing

26-Qubit Circuit Architecture

QPPIP's quantum circuit uses 26 qubits to simultaneously model multiple risk domains. Qubits can exist in superposition, allowing the circuit to evaluate millions of risk scenarios in parallel.

Allocation: Q0-Q5 (Boiler), Q6-Q10 (Turbine), Q11-Q14 (Electrical), Q15-Q18 (Environmental), Q19-Q21 (BI), Q22-Q24 (External), Q25 (Ancilla)
Risk Encoding Technique

The process of converting classical risk data into quantum states. QPPIP uses RY rotation gates where the rotation angle is proportional to the risk level (0 = no risk, π = maximum risk).

Formula: θ = risk_level × π (e.g., 50% risk = 0.5π radians)
Correlations Entanglement

Quantum entanglement used to model risk dependencies. For example, boiler failure increases business interruption risk. QPPIP uses CX (CNOT) gates to create these correlations between qubit groups.

Example: CX(Q0_boiler, Q19_BI) means boiler state affects BI probability
Amplification Algorithm

Grover-like amplitude amplification to boost the probability of measuring high-risk scenarios. This helps identify rare but severe loss events that traditional Monte Carlo simulation might miss.

Benefit: Quadratic speedup in finding worst-case scenarios vs classical methods

Insurance Terms

Total Insured Value (TIV) Coverage

The maximum value that can be claimed under a property insurance policy. For power plants, TIV typically ranges from $1.2M to $1.8M per MW of capacity.

Example: 500 MW plant × $1.5M/MW = $750M TIV
Deductible Coverage

The amount you pay out-of-pocket before insurance kicks in. Higher deductibles lower premiums but increase retention. QPPIP optimizes deductibles based on your risk tolerance and cash flow.

Range: $500K (low risk) to $5M+ (high risk or cost savings)
Waiting Period BI Coverage

The time delay before business interruption coverage begins. Shorter waiting periods cost more in premium. Typical range is 14-60 days.

Trade-off: 14-day wait = higher premium, 45-day wait = lower premium
Broker Commission Cost

Fee paid to insurance brokers, typically 15-25% of premium. QPPIP eliminates this by connecting directly to insurers, saving $1-3M annually for large plants.

Savings: $5M premium × 20% commission = $1M saved annually with QPPIP

Power Plant Equipment

HRSG (Heat Recovery Steam Generator) Equipment

Equipment in combined cycle plants that captures exhaust heat from gas turbines to produce steam for additional power generation. A common source of boiler/machinery claims.

SCADA/DCS Controls

Supervisory Control and Data Acquisition (SCADA) and Distributed Control Systems (DCS) that monitor and control plant operations. Primary target for cyber attacks.

DGA (Dissolved Gas Analysis) Testing

Laboratory test that analyzes gases dissolved in transformer oil to detect internal faults. Results are categorized as Normal, Caution, or Abnormal.