Ariel Re provides battery guarantee backstop for clean energy project
Ariel Re is to provide a backstop for battery energy storage specialist Powin’s performance guarantee, it announced today.
The Bermuda-based reinsurer will cover Powin’s contracted capacity guarantee with sustainable energy operator Invenergy for a utility-scale project in Baja, Mexico. It provides for the replacement of the battery storage system if unexpected defects or accelerated degradation of the storage systems result in a warranty default.
Utility-scale battery energy storage systems (BESS) offer a solution to intermittent renewable energy generation, enabling the energy produced to be captured and stored until needed.
Frank Petrocelli, a senior risk analyst for clean energy risk solutions at Ariel Re, said: “As the utility-scale storage market continues to flourish and deliver enhanced asset valuation through improved grid flexibility and project owners and investors seek support of complex performance warranties from BESS technology providers, the market will benefit from insurance products from strong counterparties like Ariel Re.”
George Schulz, vice president for clean energy at Ariel Re, added, “The Powin team has demonstrated a scalable storage solution with keen focus on supply chain management to produce a reliable energy storage system. With open dialogue and sharing of information, it enables us to tailor a custom risk transfer solution.”
