TMGX Advocates for Innovative Insurance Policies for Renewable and BESS Projects
Tokio Marine GX emphasizes the need for tailored insurance policies to address risks in co-located renewable energy and battery storage projects. The report highlights the complexities of hybrid systems and their implications for the insurance market.
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Tokio Marine GX (TMGX) has issued a report calling for innovative insurance policy wordings for battery energy storage systems (BESS) integrated with renewable energy projects. Co-location of solar, wind, and BESS assets is driven by advancements in energy storage technologies, with projects like the Kassø e-methanol facility in Denmark exemplifying this trend.
In the UK, hybridizing existing renewable projects could yield an additional £15 million to £20 million in revenue, increasing exposure to grid-related losses. The insurance market must adapt to complex risk profiles arising from multi-technology dependencies and emerging project types.
Insurers currently face challenges due to limited data on new technologies, particularly in power-to-X initiatives, complicating underwriting processes. A lack of clear standards for managing these hybrid systems necessitates improved communication between insurers and insured parties regarding grid connection points.
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