AXIS Insurance, part of AXIS Capital, has partnered with The Renewables Consulting Group (RCG) on a report that highlights the importance and potential for insurers within the energy storage market globally.
The report, called ‘Energy Storage: Opportunities and Challenges’ examines the opportunities and challenges for businesses, governments, utilities and other organizations that wish to invest in the $19 billion global energy storage market, specifically the fast-growing battery storage sector.
The report was co-authored by Steve Freeman and Lee Clarke, both of whom are directors at RCG, with input and consultation from the AXIS Renewable Energy team.
Freeman said: “The benefit of and need for battery storage technologies is clear. But as in any rapidly maturing market, where new technologies are evolving at different rates of commercial readiness, deployment is complex and comes at a price. This report aims to provide stakeholders in the global energy storage market with an objective analysis of the opportunities and risks associated with battery storage so they can make an informed decision about what is right for their regions or business.”
The report explores ways to protect against some of the underlying risks associated with battery storage. Those risks include: technical risks including hazardous materials, operational limits, safety issues and physical damage; commercial risks including quality of product, third-party damage and operational risks; market risks including competition, overcapacity and unreliable manufacturers; and natural event risks including water damage and seismic activity.
Richard Carroll, senior vice president and global head of renewable energy, AXIS Insurance, commented: “Battery storage is an exciting and transformative technology that can help the global economy better manage electricity production and storage. The international energy markets are anticipating a rapid expansion of the global battery storage sector. Applications need to be considered on a case-by-case basis to ensure technical and commercial risks are adequately considered and that a plan exists to manage those risks.”
“AXIS is a major provider of insurance for renewable energy worldwide. We have developed a bespoke insurance product to cover battery storage exposures, and look forward to partnering with customers in this exciting growth sector.”
AXIS Insurance, AXIS Capital, Renewables Consulting Group, Energy, Steve Freeman, Lee Clarke, Bermuda