GCube Insurance’s Post

How can battery storage owners mitigate the risks at their projects? This was the topic tackled by Fraser McLachlan, CEO of GCube Insurance, in the opening presentation of the storage section of today’s Financing Energy Transition conference in London. He started by reflecting on five ‘elephant in the room’ risks that battery owners and operators need to be aware of at their assets: 🐘 Thermal runaway caused by fires in the supporting infrastructure at battery projects, not just in the cells themselves. 🐘 Under-insurance at projects because owners and operators don't take power price volatility into account when estimating how much failures would cost. 🐘 Natural catastrophes of the kind that have caused major losses at solar and wind projects. McLachlan highlighted earthquakes as a particular risk given the delicate nature of the chemistry in battery storage systems. 🐘 Over-reliance on a few markets for the supply of battery cells and the raw materials such as lithium, which could raise costs and cause supply issues. 🐘 Decline in the reliability of, and returns from, battery cells during their life cycle; and the potential they may need to be replaced with newer technology. However, McLachlan said battery storage owners could mitigate their risks by checking manufacturers have adequately tested their batteries; ensuring that technology failures are the responsibility of OEMs in warranties; and pushing back on OEMs when innovation isn’t needed as it could increase operational risks. “Cheapest is not always better and we need to get better at sharing knowledge and ideas," he said, but he finished on an optimistic note: “BESS will grow from a $3bn industry to a $50bn industry by 2032 and, for the insurance industry, there is a huge opportunity.” #FinancingEnergyTransition | Energy Storage Report

#SolarEnergy, as a clean and renewable power source, holds immense promise for a sustainable future. However, it faces inherent vulnerabilities, particularly to weather-related disruptions that can impact energy production. In this context, the emerging concept of parametric insurance offers a novel and efficient way to safeguard solar investments against these risks. Parametric insurance operates on a unique principle. It relies on a set of parameters, such as solar irradiation levels or the number of cloudy days. When these parameters are met or exceeded, the insurance company triggers a pre-agreed pay out. This streamlined approach stands in stark contrast to the often protracted and complex process of traditional insurance claims, which can drag on for months or even years. Parametric insurance introduces a range of compelling benefits for solar investors: #RiskMitigation: It efficiently addresses losses and disruptions in solar investments, providing a reliable way to protect against adverse events and ensure project stability. #StabilityandReliability: Based on objective data like weather or equipment performance, parametric insurance is known for its stability and trustworthiness, reducing the risk of disputes. It's typically underwritten by reputable insurers, guaranteeing claims payout in trigger events. #CostEfficiency: Streamlined claims processing in parametric insurance leads to lower administrative overhead and costs, ultimately resulting in reduced electricity bills for consumers, making solar energy more appealing. #IncreasedAccessibility: Parametric insurance widens access to solar energy, attracting customers who were deterred by perceived risks. As the market expands, economies of scale can lead to lower installation costs, benefiting consumers. #EnvironmentalImpact: A stable solar market promotes the adoption of renewable energy, reducing carbon emissions and contributing to a healthier environment – a vital long-term benefit for sustainability-conscious consumers. In essence, parametric insurance not only safeguards solar investments but also directly contributes to a more attractive, accessible, and environmentally friendly energy landscape for end customers. This synergy between risk management and market development ultimately aligns with the broader goal of a sustainable and prosperous future powered by solar energy. #JBBODA #Insurance #Reinsurance #ParametricInsurance #Broking #SustainableEnergy #SolarEnergy

Specialist in Renewable Insurance | Protecting the Future of Sustainable Energy As a dedicated professional in renewable insurance, Berkley is passionate about safeguarding the growth and sustainability of the renewable energy sector. With experience in the insurance industry, We specialise in designing comprehensive insurance solutions tailored specifically for renewable energy projects, including solar, wind, hydro, and bioenergy. Key Areas of Expertise: • Renewable Energy Risk Assessment • Project-Specific Insurance Solutions • Coverage for Construction and Operational Phases • Global Renewable Markets Insight • Mitigation of Environmental and Technological Risks We collaborate closely with renewable energy developers, investors, and operators to navigate complex insurance needs, ensuring their projects are protected against potential risks and uncertainties. Our goal is to facilitate the expansion of renewable energy initiatives by providing robust insurance strategies that support long-term success and resilience. Let's connect to discuss how Berkley can help you navigate the insurance landscape in the renewable energy sector and contribute to a sustainable future. #berkley #risk #specialised #insurance #renewable #project #insurance

New Circular from MNRE Updates Insurance Options for Solar Power Plants In a significant update aimed at stakeholders within the solar power sector, the Ministry of New and Renewable Energy (MNRE), following consultations with the Department of Financial Services (DFS) and the Insurance Regulatory and Development Authority of India (IRDAI), has released an updated list of insurers providing specialized insurance products for solar power plants. This move comes in response to calls for an updated compilation of insurers capable of covering the diverse risks associated with solar power plant operations. Originally outlined in Circular No. 283/72/2019-GRID SOLAR dated January 7, 2020, the list has now been refreshed to reflect the current […] Read the full story here: https://lnkd.in/d4iEw9dc #solarenergy #alternativeenergy #solarpv #pvsolar #photovoltaic #cleanenergy #cleantech #climatechange #middleeast #africa #india #asiapacific #asia #dfs #india #insurance #irdai #mnre #renewableenergy #solarpvplant

Before installing Solar Panels As more and more homeowners embrace sustainability and cost-efficiency, the trend of installing solar panels to save on electricity bills has gained significant momentum. Before you jump onto the solar bandwagon, there's a crucial aspect you should be aware of to safeguard your investment and protect your home. Some insurance carriers are currently hesitant to extend coverage to homeowners with solar panels. This means that if you decide to install solar panels without clarifying this matter with your homeowners' insurance provider, you could potentially face a disruption in your coverage. I strongly advise you to take a moment and reach out to your homeowners' insurance carrier before proceeding with solar panel installation. Confirm that they are willing to cover homes equipped with solar energy systems. Being proactive in this matter will give you peace of mind, knowing that your investment in sustainable energy won't jeopardize your insurance coverage. It's a small step that can make a world of difference in protecting your home and finances. #SolarPower #SustainableLiving #InsuranceMatters #HomeownersTips

Our team Covea SME wrote a solar panel wholesaling risk today on our commercial combined package product. Excuse the slightly messy back garden, the picture is my house! Some of the risk features we look at for this trade are: ·      The amount of batteries, how these are stored and whether there is any battery charging being carried out at the premises. This is because batteries can be a high risk for explosion. If one battery was to short circuit, then this would start to warm up and this could cause the battery next to it to heat up and so on. ·      The Solar panel products have achieved British standards of compliance - BS EN 61730 – Photovoltaic (PV) module safety qualification and - BS EN 61215 – Terrestrial photovoltaic (PV) modules. This gives us confidence that the panels are unlikely to cause third party property damage from a products liability point of view. ·      The client has a good level of experience within the trade. There are a lot of start up solar companies coming through this year. This is great, and something that I personally support enthusiastically, but from an insurance perspective we need to make sure that these are set up and run safely.

Grey areas in green investment? There are certainly many that could be explored, but the grey area between the OEM warranty period and the period of finance is likely to be one of the topics of discussion at Solar & Storage Live on Wednesday 18th October.  If you have any questions about investment in energy storage and are wondering about warranties, or any other topics related to protecting or speeding up investment in energy storage, this could be a valuable discussion to join.   Some thought-provoking observations from Charley on the panel at 11.30 include: - OEM warranties are often for less than the finance period – that gap can be a grey area…. -investors are often unaware that a warranty is a long term non-cancellable product, quite different from an insurance policy which has to be renewed; - insurance for many assets will be coming up for renewal; it can be difficult or expensive to renew. If you need to consider your energy asset insurance, warranty protection or are looking to invest in energy storage, do come along to the event and listen to Charley and his co-panellists Justin McNamara from Honeywell, Robert Gardner from WTW, Tim Rickard from Essex County Fire and Rescue Service and Alastair Nicklin from Marsh.   #energystorage #insuredwarranties #cleantech #insurtech #Altelium

The #renewableenergy sector is booming! Many people have gotten into the business of providing sustainable energy but few truly understand their risk profile when it comes to #insurance. Here are five essential types of #insurancecoverage that every renewable energy business should consider: 🌿 1. Construction Insurance: Protect your projects during the construction phase against unforeseen events such as accidents, natural disasters, or delays. 🌿 2. Business Interruption: Ensure your operations are safeguarded in case of unexpected disruptions like equipment breakdowns or supply chain issues. 🌿 3. Operational All Risks: Cover your operational assets, including machinery, equipment, and facilities, against a wide range of risks such as fire, theft, and breakdowns. 🌿 4. Liability Protection: Mitigate risks associated with third-party claims, environmental damage, or accidents involving your renewable energy installations. 🌿 5. Eco Safe: Embrace sustainability with our Eco Safe insurance tailored for renewable energy businesses. Need help with your insurance portfolio? We cater to businesses across the wind, solar, hydro, and more sectors, supporting your transition to cleaner and greener energy solutions. Because once you go green, you never go back! Give us a shout at ☎ 27 66 514 8939 or email us at 💻 [email protected] Visit our website at www.greenenergysure.co.za www.GreenEnergySure.co.za is the property of Deo Gratia Insurance Brokers who holds the FSP 1233. Let's work together to build a sustainable tomorrow, one insured step at a time! 🌍💡 #GreenEnergySure #RenewableEnergyInsurance #SustainableFuture 

With intensifying climate hazards, renewable energy operators face growing pressure to future-proof their assets. Whether you are elevating, hardening, or weather-proofing your solar, wind, or battery asset, these actions deserve recognition from insurers. Our property insurance team at kWh Analytics closely evaluates the risk management programs in place to mitigate exposures. Specifically, we look at multiple risk factors in 4 key categories: 1. Operational Resilience: encompasses the staffing, training, procedures, and contracting involved in the daily operational management and protection of assets. 2. Technical Resilience: including the physical attributes of the assets like undergrowth, monitoring systems, and backup power. 3. Regional Resilience: The geographic and weather-related factors such as site location, storm probability, historic hail size, and other environmental conditions that influence the risk profile. 4. Proactive Resilience: focusing on the preventative measures asset owners take through strategies like hail stow, redundancy planning, and other investments to minimize risks. Insurers now have an obligation to capture detailed risk profiles of insured assets. Granular modeling and pricing tuned to each asset's unique resilience profile are within reach. Our team at kWh Analytics has a unique view of renewable property risk. But, we don’t get to share that view until a submission crosses our desk. It’s good practice to work with your insurance broker on their marketing list to make sure kWh Analytics is on it!

As solar activity reaches its highest levels in a century, businesses must brace for the potential fallout of solar flares and EMP blasts, prompting the need for proactive preparations. https://lnkd.in/g2tPZN6p