Skip to main content
Marsh logo

Solutions

Battery energy storage systems (BESS)

Supporting more than 650 gigawatts of renewable energy projects worldwide, our team of global specialists understands the challenges you face and offers tailored risk management solutions at every stage of your project.
Contact us

Comprehensive solutions

Access to global insurance markets, bespoke policy wording, and risk allocation strategies that suit your project partners and stakeholders.

Sophisticated risk modeling

Insightful data and proven proprietary modeling tools give you control, and help optimize your total cost of risk.

Deep expertise

Our advisors, engineers, brokers, claims advocates, and finance and commercial specialists will help you manage complexity and stay in control of your project.

A critical challenge of the energy transition is addressing the intermittency of renewable energy generation. As we reduce our reliance on thermal baseload generation, how do we power our homes and businesses when the wind stops blowing or the sun isn’t shining? Renewable energy can be efficiently stored in utility-scale battery energy storage systems (BESS) allowing power to be released to the grid when required.

The increased storage capacity and rapidly declining costs of battery units are driving a global rise in demand.

However with limited loss data and costly claims in a number of regions, insurance markets are factoring  known and unknown BESS risks into their capacity, pricing, and policy terms. The primary risk considerations include:

  • Thermal runaway fires. Thermal runaway is a chain reaction where a damaged battery releases energy in the form of heat. Left unchecked, the heat can damage adjacent cells, or cause a fire. Large-scale battery fires have occurred in almost every region, notably Asia, Europe and the US.
  • Collateral damage, ensuing loss. The design and configuration of BESS modules is key to containing the risk of thermal runaway fires. When assessing the insurability of an installation, insurers will need to be satisfied that there is sufficient separation within the storage modules and between critical infrastructure such as site transformers and substations. Insurers will be focused on ensuring that if an incident occurs, that the loss and damages can be minimized.
  • Business interruption. Minimizing single points of failure is key to avoiding contingent business interruption and impact on revenue. Insurers will typically favor projects that route power to the grid separately from the BESS. This safeguards operations and revenue, and prevents damage to one component in the event of a loss affecting another component.
  • Insurance market capacity. Insurance markets generally consider energy storage to be prototypical technology. Insurance capacity for BESS projects may be limited due to limited historical loss data and varying installation, operation, and engineering standards around the world. 

See our full guide on risk management solutions for BESS projects.

Download now

Marsh provides you with a tailored approach and comprehensive solutions

We understand that every project is unique. Our team will support you through each project milestone to optimize your risk management strategy.

Design

Position your project for success

  • Engineering support
  • Technology analysis
  • Loss modeling
  • Stakeholder management
  • Insurance budgeting

Construction

Get it built

  • Supply chain analysis
  • Health & safety strategy
  • Operational insurances
  • Hand-over to operations

Operation

Protect your assets and your business

  • Risk management framework
  • Captive strategy
  • Loss limit reviews
  • Specialist claims services
  • Decommissioning planning

Decommissioning

Close it out responsibly

  • Risk and liability review
  • Ongoing insurance

Our people

Our global renewable energy team includes insurance advisors, risk engineers, brokers, claims advocates, project finance specialists, and former industry risk managers. Contact one of our BESS leaders for support.

Michael Kolodner

Michael Kolodner

Energy & Power Leader

  • United States

Related solutions

Biogas cylinders with field in front

Biomass

10/16/2022
geothermal energy pipeline

Geothermal power

10/16/2022
view of the hydroelectric dam, water discharge through locks, long exposure shooting

Hydropower

10/16/2022
Wind Turbine from below with sun creating lens flare

Offshore windfarm projects

05/30/2022
Close-up of Wind Turbine - Windfarm in Horizon

Onshore wind energy

05/30/2022
Close-up of Solar cell farm power plant eco technology.landscape of Solar cell panels in a photovoltaic power plant.concept of sustainable resources and renewable energy.blue tone.

Solar power projects

05/30/2022

Related insights

Placeholder Image

Article

Mitigating risks and strengthening resilience in the LNG industry

11/15/2024
Offshore wind turbine farm at sunset.

Article

Brazil could be the world’s most promising region for offshore wind

08/30/2024
The concept of storing electrical energy in hydrogen by electrolysis. The system captures an electrolysis unit, storage tanks, solar and wind power plants on a lush lawn among the trees. 3d rendering

Article

Delivering on hydrogen: Transport and storage solutions

07/30/2024
Offshore wind turbines farm on the ocean. Sustainable energy production, clean power.

Article

Offshore wind: Resourcing for growth

07/26/2024
View more