Corporate Insurance Partner - Green Tech Solutions

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Electrical energy storage (EES) systems – Insurance solutions to meet the needs of both manufacturers and investors

Green Tech Solutions provides bespoke risk transfer to facilitate the rapidly growing energy storage market.

In order to achieve the efficient distribution and balance of clean energy sources and meet ambitious energy efficiency targets, electrical energy storage solutions, such as batteries in stationary and e-mobility applications, are gaining in importance. All forecasts point to a rapidly growing energy storage industry in the next couple of years.

There are boundless opportunities for this constantly evolving market, but the lack of access to sufficiently cost-effective capital hinders this market from developing sustainably. Traditional and institutional investors such as banks and pension funds are deterred from investing. They are unable to assess all the various technologies and corresponding risks involved. The fact that projects in this area are still relatively small does not help either.

Following the successful example of the photovoltaics industry, the energy storage industry is offering long-term warranties of up to 10 or even 15 years against defects and performance degradation. These warranty provisions improve investor comfort but tie up the manufacturer’s capital and increase the risk of high costs through serial losses. This can have a negative impact on the manufacturer’s profit.

Corporate Insurance Partner offers insurance protection for technical risks and backs up long-term performance warranties.

Four reasons you should talk to us

1. You want to back up long-term warranty obligations for electrical energy storage systems to protect your balance sheet.

With our EES Performance Warranty Cover we enable you to reduce long-term warranty risks in your balance sheet and release business-enabling cash reserves.

Details of coverage:

  • Insurance of products sold with warranties of up to 10/15 years
  • Indemnification of excessive warranty claims
  • One-time premium based on revenue insured
  • Non-cancellable for the insurer


Increase the predictability of your financial reserves: Talk to us.

2. You want to benefit from our innovative risk transfer approach in electric energy storage systems and the technical expertise in our team.

Our technology-oriented risk assessment ensures product quality and long-term investment security.
 
The engineering review and investment due diligence that our risk analysts undertake as part of the underwriting process create a competitive advantage for the manufacturer. We can also facilitate access to testing/certification schemes from cooperation partners like VDE or Fraunhofer ISE. Overall, we enable better financing conditions by increasing planning and investment security, boosting investor trust.

Find an insurer who speaks your technical language: Talk to us.

3. As a reliable EES manufacturer, you want to attract investors and customers.

As large-scale energy storage is a new and relatively unproven technology, investors and banks are concerned that manufacturers, suppliers and project owners might not be able to honour 10 to 15 year warranty contracts. An additional feature of our EES Performance Warranty Cover protects large-scale EES investors or project owners against technical underperformance and  the potential subsequent insolvency of the EES performance warranty provider.
 
Get convincing arguments for investors and banks:
Talk to us.


4. Secure the payback of your EES investment by taking the technology risk out of the equation.

A multitude of different energy storage system providers are keen to win the race to market. There is tremendous market growth potential but many of the “new” EES technologies are unproven and lack – in particular – a long-term performance record. However, the latter is the key lever that ultimately determines the profitability of your EES investment. With the EES Investment Project Cover, Munich Re can directly indemnify the investors in the event of technological underperformance with dedicated capacity allocated to individual projects. Limits, triggers and indemnification can be customised to needs and risk requirements individually.

Secure the performance of your investment – increase your peace of mind:
 Talk to us.

Overview

Coverages:
  • EES Performance Warranty Cover
  • EES Investment Project Cover
Industries covered: Renewables, Energy, Storage

Please contact us to discuss your specific situation. We look forward to speaking to you about a solution tailored to your risk situation.

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This publication is available exclusively to Munich Re clients. Please contact your Client Manager.