GCube Insurance has introduced a new consortium aimed at providing up to $100 million in “A-rated” insurance capacity specifically tailored for battery energy storage system (BESS) developers and asset owners.
This move comes in response to increasing global demand from brokers and the BESS market, particularly as larger utility-scale BESS assets with capacities exceeding 100MW and longer durations become operational.
Fraser McLachlan, Founder & CEO of GCube Insurance, emphasized the strategic importance of the consortium: “Our BESS consortium now formalises our significant commitment to the sector. BESS has reached a point of maturity where more and more capacity is required, but the complexity of mitigating losses with evolving technology also requires this capacity to be well-versed in handling claims and selecting risks.”
He added, “These projects are now growing in size and value, and we are pleased to be in a position to provide additional coverage, as well as to guide the development of sustainable terms and conditions based on our extensive experience in the market.”
The consortium, comprising six Lloyd's syndicates, reflects a recognition among underwriters of the need to manage risks associated with BESS, which faces challenges due to the rapid technological evolution and limited long-term operational data.
GCube's initiative aims to bolster confidence in the sector by offering robust insurance solutions aligned with the industry's objectives in renewable energy transition.
