The Energy Storage Report 2024

Now available to download, covering deployments, technology, policy and finance in the energy storage market

TWAICE, NARDAC partner to provide better insurance terms for BESS using software analytics

Leveraging battery data analytics can make the operation of battery storage systems safer and in turn, easier and cheaper to get insurance cover for. Image: TWAICE.

Battery analytics provider TWAICE has partnered with NARDAC to bolster insurance coverage for battery energy storage system (BESS) asset owners, investors and lenders.

TWAICE said NARDAC, an energy and infrastructure specialty insurance broker, will help it provide improved insurance coverage terms by combining real-time analytics with existing passive mitigation strategies.

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

According to a statement released by the two companies, the energy storage industry has struggled to secure insurance coverage. High-profile incidents of thermal runaway have led insurers to reduce available capital.

Despite recent research by the Electric Power Research Institute (EPRI) and Pacific Northwest National Laboratory (PNNL) showing that BESS failure incident rates dropped 97% between 2018 and 2023, the severity of thermal runaway events remains high, leaving insurers exposed to high-cost claims, TWAICE said.

Stephan Rohr, CEO of TWAICE, stated that the partnership will enable the organisation to “offer tangible financial benefits to the entire energy storage markets” with its technology able to “lower the risk of a safety incident” through its autonomous monitoring and analytics.

Accompanying the announcement was a whitepaper named Thermal Runaway Mitigation for BESS Insurers. The document includes three real-world case studies whereby the use of its software analytics helped identify an issue with the asset alongside a TWAICE recommendation. The projects included were a 57MWh BESS, a 24MWh asset and a 22MWh storage system.

The 22MWh BESS received a ‘critical’ issue with the container suddenly heating up. The whitepaper stated that a “likely thermal runaway event was avoided because the client took action based on TWAICE Analytics recommendations”. TWAICE sent out a critical warning by e-mail each time the threshold of 40°C was reached – lower than the maximum temperature the asset could reach.

The client was recommended to change BMS settings for the system and to review settings in the other systems in the portfolio.

ACCURE discusses insurance innovations

In a similar move in April 2024, German-headquartered provider ACCURE partnered with UK BESS investor-developer Gore Street Energy Storage Fund to deploy cloud-based battery data analytics software to reduce operational issues and the risk of fires caused by thermal runaway events. This was to help businesses leverage analytics solutions to get improved insurance terms.

Last month (28 May) hosted an exclusive webinar with ACCURE, PIB Insurance Brokers and insurance provider HDI Global, examining how data analytics can change the dynamics of insurance for large-scale BESS projects.

Read Next

July 10, 2024
Powin will supply 880MWh of its BESS technology for a project developed by US utility DTE Energy in Michigan, US.
July 9, 2024
Australia-based battery energy storage system (BESS) developer, owner and operator Stor-Energy has received a strategic investment from HMC Capital, an ASX-listed asset manager.
July 2, 2024
ARENA has approved US$94 million in funding for community battery energy storage installations in Australia.
June 27, 2024
The first community battery energy storage system (BESS) has been switched on as part of the ‘Power Melbourne’ initiative in Australia.
June 25, 2024
Transgrid, has indicated that 4.8GW of grid-forming BESS will be necessary to stabilise the grid in New South Wales to support renewable energy deployment.

Most Popular

Email Newsletter