January 15, 2026
by in News

Why financial risk is the real challenge for battery storage in Europe

As battery energy storage systems (BESS) move from pilot projects to core infrastructure across Europe, the conversation is changing. Technology and costs still matter, but for investors and lenders the decisive question is increasingly financial: how resilient are BESS projects when revenue is delayed, disrupted, or degraded?

Across Central and Eastern Europe as well as mature Western markets, storage projects are entering a phase of tighter margins, more complex financing structures and lower tolerance for uncertainty. In this environment, insurance is no longer just about protecting equipment; it is becoming a central tool for managing financial risk and preserving bankability.

Financial continuity defines bankability

For storage projects, technical performance is only half the equation. The other half, the one that ultimately determines financing terms, is financial continuity. Every phase of a BESS or hybrid PV+BESS project carries exposure to income loss: during transportation, construction, commissioning, and operation.

Even short disruptions can have disproportionate consequences. A damaged transformer during shipping, a fire incident during testing or a commissioning delay before grid connection can postpone the start of revenues, while debt service, contractual obligations, and operating costs continue to accrue.

This is why Renewable Energy Insurance Broker (REIB) structures insurance programs around financial outcomes, not just physical damage. The objective is simple: ensure that delays or performance issues do not automatically escalate into financial stress.

ALOP: From overlooked add-on to financing safeguard

One of the most underestimated insurance covers in the BESS sector today is Advance Loss of Profit (ALOP). Traditionally seen as optional, ALOP is rapidly becoming essential, particularly for large-scale storage and hybrid projects with tight financing schedules.

ALOP protects expected revenues when construction or commissioning is delayed due to insured physical damage. In practice, it bridges the critical gap between construction risk and future cash flow. In 2025, REIB observed multiple projects where even short delays could have triggered penalty clauses, refinancing pressure, or delayed revenue start.

When structured correctly, ALOP ensures that delays do not automatically translate into financial crises. For lenders, it increasingly functions as a bankability safeguard, providing confidence that revenue projections remain protected even if timelines slip.

DSU and logistics: When delays start before construction

Financial risk does not begin on site. For BESS projects, it often starts much earlier – during transport. Batteries, inverters and transformers travel thousands of kilometers before installation, making logistics one of the most exposed phases of the project lifecycle.

A single cargo incident can delay commissioning by months, increasing financing costs and contractual exposure. REIB addresses this risk through Delay in Start-Up (DSU) insurance combined with Cargo coverage, ensuring that if a critical shipment is damaged, stolen, or delayed, the project is compensated not only for the physical loss but also for the income lost during the resulting downtime.

For investors and lenders, this closes one of the most dangerous financial gaps in project planning: the period before operations even begin.

Construction and commissioning: The most fragile phase

The construction and commissioning stage is where technical and financial risks converge. Fires, installation accidents or testing failures can delay grid connection, pushing revenue timelines back while expenses continue.

Many traditional insurance policies either exclude this phase or cover it only partially. REIB structures construction-phase DSU coverage that runs from installation through commissioning, responding not only with repair costs but also with compensation for lost income.

This transforms insurance from a reactive instrument into a strategic financial stabilizer, keeping debt service, investor expectations, and project schedules aligned even when delays occur.

Business Interruption: Insuring the ability to earn

Once operational, BESS and hybrid projects depend on consistent performance to meet financial models. Yet standard Business Interruption (BI) insurance often fails to reflect the complexity of storage revenues.

REIB structures BI coverage around the project’s actual revenue mechanism – whether tolling, profit-sharing or hybrid arrangements. The focus is on protecting total income, not just net profit, with coverage that includes partial degradation and extended indemnity periods of up to 18 months.

In short, insurance protects the project’s ability to earn, because that is what sustains investor confidence and lender support.

Design decisions are financial decisions

Across Europe, particularly in fast-evolving markets, investors often underestimate how deeply design choices affect bankability. Decisions related to battery suppliers, container layouts, or control-system design can materially influence insurance availability, scope and pricing.

REIB’s role is to ensure these risks are identified and addressed early, when corrections are technically simpler, financially cheaper, and far more effective. Projects that integrate insurance expertise from the outset consistently achieve broader coverage and more favorable financing terms. When insurance input comes too late, exclusions, higher deductibles, or gaps in ALOP protection are far more common.

Conclusion: Financial risk will shape Europe’s storage rollout

Battery storage is no longer a technical experiment; it has become a financial asset class. Its success now depends on how effectively revenue risks are managed across the entire project lifecycle.

As Europe accelerates BESS deployment, insurance is evolving from a compliance requirement into a core element of financial structuring. By focusing on income protection, early risk assessment, and coverage aligned with real revenue models, insurance is increasingly influencing which storage projects move forward, and which stall at the financing stage.

For BESS in Europe, managing financial risk is no longer optional; it is the foundation of bankability. In 2025 alone, REIB insured more than 8 GWh of BESS capacity across Europe, demonstrating how revenue-focused risk management can turn financial uncertainty into long-term resilience.

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January 14, 2026
by in News

Why financial risk is the real challenge for battery storage in Europe

As battery energy storage systems (BESS) move from pilot projects to core infrastructure across Europe, the conversation is changing. Technology and costs still matter, but for investors and lenders the decisive question is increasingly financial: how resilient are BESS projects when revenue is delayed, disrupted, or degraded?

Across Central and Eastern Europe as well as mature Western markets, storage projects are entering a phase of tighter margins, more complex financing structures and lower tolerance for uncertainty. In this environment, insurance is no longer just about protecting equipment; it is becoming a central tool for managing financial risk and preserving bankability.

Financial continuity defines bankability

For storage projects, technical performance is only half the equation. The other half, the one that ultimately determines financing terms, is financial continuity. Every phase of a BESS or hybrid PV+BESS project carries exposure to income loss: during transportation, construction, commissioning, and operation.

Even short disruptions can have disproportionate consequences. A damaged transformer during shipping, a fire incident during testing or a commissioning delay before grid connection can postpone the start of revenues, while debt service, contractual obligations, and operating costs continue to accrue.

This is why Renewable Energy Insurance Broker (REIB) structures insurance programs around financial outcomes, not just physical damage. The objective is simple: ensure that delays or performance issues do not automatically escalate into financial stress.

ALOP: From overlooked add-on to financing safeguard

One of the most underestimated insurance covers in the BESS sector today is Advance Loss of Profit (ALOP). Traditionally seen as optional, ALOP is rapidly becoming essential, particularly for large-scale storage and hybrid projects with tight financing schedules.

ALOP protects expected revenues when construction or commissioning is delayed due to insured physical damage. In practice, it bridges the critical gap between construction risk and future cash flow. In 2025, REIB observed multiple projects where even short delays could have triggered penalty clauses, refinancing pressure, or delayed revenue start.

When structured correctly, ALOP ensures that delays do not automatically translate into financial crises. For lenders, it increasingly functions as a bankability safeguard, providing confidence that revenue projections remain protected even if timelines slip.

DSU and logistics: When delays start before construction

Financial risk does not begin on site. For BESS projects, it often starts much earlier – during transport. Batteries, inverters and transformers travel thousands of kilometers before installation, making logistics one of the most exposed phases of the project lifecycle.

A single cargo incident can delay commissioning by months, increasing financing costs and contractual exposure. REIB addresses this risk through Delay in Start-Up (DSU) insurance combined with Cargo coverage, ensuring that if a critical shipment is damaged, stolen, or delayed, the project is compensated not only for the physical loss but also for the income lost during the resulting downtime.

For investors and lenders, this closes one of the most dangerous financial gaps in project planning: the period before operations even begin.

Construction and commissioning: The most fragile phase

The construction and commissioning stage is where technical and financial risks converge. Fires, installation accidents or testing failures can delay grid connection, pushing revenue timelines back while expenses continue.

Many traditional insurance policies either exclude this phase or cover it only partially. REIB structures construction-phase DSU coverage that runs from installation through commissioning, responding not only with repair costs but also with compensation for lost income.

This transforms insurance from a reactive instrument into a strategic financial stabilizer, keeping debt service, investor expectations, and project schedules aligned even when delays occur.

Business Interruption: Insuring the ability to earn

Once operational, BESS and hybrid projects depend on consistent performance to meet financial models. Yet standard Business Interruption (BI) insurance often fails to reflect the complexity of storage revenues.

REIB structures BI coverage around the project’s actual revenue mechanism – whether tolling, profit-sharing or hybrid arrangements. The focus is on protecting total income, not just net profit, with coverage that includes partial degradation and extended indemnity periods of up to 18 months.

In short, insurance protects the project’s ability to earn, because that is what sustains investor confidence and lender support.

Design decisions are financial decisions

Across Europe, particularly in fast-evolving markets, investors often underestimate how deeply design choices affect bankability. Decisions related to battery suppliers, container layouts, or control-system design can materially influence insurance availability, scope and pricing.

REIB’s role is to ensure these risks are identified and addressed early, when corrections are technically simpler, financially cheaper, and far more effective. Projects that integrate insurance expertise from the outset consistently achieve broader coverage and more favorable financing terms. When insurance input comes too late, exclusions, higher deductibles, or gaps in ALOP protection are far more common.

Conclusion: Financial risk will shape Europe’s storage rollout

Battery storage is no longer a technical experiment; it has become a financial asset class. Its success now depends on how effectively revenue risks are managed across the entire project lifecycle.

As Europe accelerates BESS deployment, insurance is evolving from a compliance requirement into a core element of financial structuring. By focusing on income protection, early risk assessment, and coverage aligned with real revenue models, insurance is increasingly influencing which storage projects move forward, and which stall at the financing stage.

For BESS in Europe, managing financial risk is no longer optional; it is the foundation of bankability. In 2025 alone, REIB insured more than 8 GWh of BESS capacity across Europe, demonstrating how revenue-focused risk management can turn financial uncertainty into long-term resilience.

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September 17, 2025
by in News

One year in: insights from REIB’s inaugural BESS investments and increasing importance of safety standards

When discussing Europe’s green transition, battery energy storage systems (BESS) are often talked about as “the next big thing,” as the technologies have the potential to transform the grid, stabilise renewable energy sources, and enable new business models. However, while it’s easy to talk about storage, operating it with real assets, real risks, and real returns on the line is where theory meets reality. That is why hitting the one-year mark with two operational co-located BESS projects is more than just a date on the calendar for Renewable Energy Insurance Broker (REIB). It is a chance to look back at what worked, what caught them by surprise, and what they would tell anyone about to start their own storage journey.

In September 2024, REIB launched its own operational projects — a 4 MW / 8 MWh system and a 6 MW / 12 MWh system, developed together with Sunotec. They have now been in uninterrupted operation for twelve months, making them among the first large-scale storage sites in the region.

Eager to hear the first insights from REIB on two BESS facilities, we sat down with Delyan Iliev, Managing Director of REIB, to discuss the lessons learned from commissioning and operating these projects, and how their experience relates to broader market trends.

Delyan, achieving one year of uninterrupted operation is a significant milestone. What has stood out to you the most during this time?

One of the first things that became clear is the critical importance of certifications and compliance requirements from banks and insurers. They not only want to ensure that a project is technically sound but also require proof that it meets internationally recognised safety standards. In many cases, these certificates are prerequisites for financing. Without them, your project simply cannot move forward.

So, is early planning crucial?

Exactly. A preliminary consultation is not a formality; it is essential. When insurance professionals are involved from the beginning, we can identify and address technical or contractual issues before they escalate into costly problems. The same goes for having solid protection in the early stages of a project — too many investors believe that insurance is something you can add later. In reality, early-phase cover can mean the difference between a minor setback and a project-crippling loss.

And where does Business Interruption coverage fit into this?

That comes in a later stage, but it is equally important. Business Interruption insurance is not just about replacing lost revenue; it’s about making sure the cover matches your specific revenue model and contractual obligations. If those two are not aligned, you may face serious gaps in protection when you need it most.

REIB also works closely with clients during negotiations. How does this benefit them?

When “Insurance Requirements” are included in contracts, we are there with our clients in the negotiation room. We help to shape those clauses so that they are realistic and achievable. You don’t want to sign a contract only to realise later that you have agreed to provide policies that are impossible to obtain, have excessively high limits, or are prohibitively expensive.

Beyond that, we give our clients additional security by advising them on the most suitable insurance solutions and coverage structures for their specific project. This approach ensures that they meet their contractual obligations in a manner that is efficient, sustainable, and aligned with their risk profile.

Let’s talk about safety standards. How do they fit into this picture?

They’re the backbone of insurability. Because there’s no universal regulation for BESS yet, and rules can differ even within a single country, insurers have taken the lead in enforcing global benchmarks, such as UL, IEC, and NFPA standards. These cover everything from battery chemistry and fire safety spacing to manufacturing quality and site-specific studies. And they are not static; they evolve alongside technology.

For example, lithium ferro phosphate, or LFP, is now preferred over older chemistries like NMC (nickel, manganese, cobalt) because it is more stable, lasts longer, and is less risky. Aligning with these standards from the start not only makes insurance possible but also reassures lenders and streamlines the financing process.

And after a year, how do your projects measure up against these benchmarks?

Very well. Early alignment with international safety standards enabled us to avoid delays in securing insurance and financing. It also gave us leverage in our dealings with contractors and suppliers, because the requirements were clear from the very beginning, and everyone involved in the project knew what had to be delivered. This approach not only reduced uncertainty but also helped us manage risks more effectively during construction and commissioning.

That is your own experience. How does it fit with REIB’s broader role in the European market?

At REIB, we are proud to help unlock the potential of storage projects, and the scale speaks for itself: in 2024, Europe installed a total of 21.9 GWh of BESS, while in just the first six months of 2025, we insured more than 6 GWh — with projects in Bulgaria, Germany, and the UK. This demonstrates both the speed of market growth and the trust our clients place in us to manage their complex insurance requirements.

Finally, if you had to give one piece of advice to investors who are just starting their BESS journey, what would it be?

Don’t wait until your project is fully designed to think about insurance. The right insurance strategy is as important as the right technology. Too many projects lose valuable time and money because risk management is treated as an afterthought. Our experience shows that when insurance expertise is integrated from the earliest stage, financing is smoother, negotiations are easier, and the project stands on much firmer ground.

We already know how to align BI coverage with your revenue model, which certifications are non-negotiable for financing, and how to avoid uninsurable contract clauses. If you’re planning a BESS or hybrid project, talk to us before you break ground. It will save you time, money, and a lot of headaches in the long run.

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July 3, 2025
by in News

SolarPower Europe: EU needs ten times more battery storage by 2030 to meet renewables targets

SolarPower Europe believes that the European Union needs ten times more battery storage by 2030 to support the growth of solar and other renewable energy capacities and maintain the pace of the energy transition. To promote battery growth across the EU, SolarPower Europe has launched an initiative called the Battery Storage Europe Platform.

“Battery storage is no longer optional – it is essential. Without urgent action, the EU risks stalling its energy transition,” stated Juhi Dion Sud, the newly appointed Head of the Battery Storage Europe Platform. She added that a tenfold increase in battery storage by 2030 is vital to sustain the rapid growth of solar and other renewables, and to ensure the EU’s energy security, resilience and competitiveness.

Dion Sud: The EU needs to boost BESS capacities from 50 GWh to at least 500 GWh

The EU currently has just over 50 GWh of battery energy storage systems (BESS), but to stay on track for the 2030 renewables targets, the level must increase to between 500 GWh and 780 GWh, explained Dion Sud.

Walburga Hemetsberger, CEO of SolarPower Europe, described solar and storage as “the perfect pair,” adding that battery storage must grow at the same pace as solar installations across Europe.

The platform’s founding partners include REIB, Statkraft and Sunotec

The Battery Storage Europe Platform was launched with support from founding strategic partners, including Renewable Energy Insurance Broker (REIB), Statkraft, and Sunotec. Over 50 representatives from leading battery storage companies joined the kick-off day in Brussels.

The platform will represent the interests of the sector at the EU level, facilitating engagement with policymakers and delivering constructive legislative trade and investment frameworks for battery storage manufacturing and deployment, according to a press release from SolarPower Europe.

Participation in the platform is open to members of SolarPower Europe, with strategic partnership opportunities available for organizations interested in taking a leading role in the work of the platform, it added.

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June 30, 2025
by in News

Energy storage in focus: How custom insurance solutions are fueling Southeast Europe’s green transition

Battery energy storage is becoming increasingly central to the energy transition in Southeast Europe and beyond, thanks to its key role in enabling renewables integration while ensuring grid flexibility and resilience. However, as battery energy storage systems (BESS) become more advanced and technologically complex, the risks involved exceed those of traditional renewable energy projects, making tailor-made insurance vital to their bankability, safety, and profitability. We discuss the importance of energy storage for the region’s green transition, as well as the critical role of custom-made insurance solutions in the success of BESS projects, with Delyan Iliev, Managing Director of Renewable Energy Insurance Broker (REIB), a market leader in BESS insurance in Southeast Europe.

Why storage is becoming central to Europe’s energy strategy

As Europe accelerates its energy transition, solar is leading the charge. In 2024 alone, 21.9 GWh of new battery energy storage systems (BESS) were installed across the continent, marking a 15% year-on-year growth. With storage now considered essential for grid flexibility, market stability, and renewable integration, Southeast Europe is beginning to recognize its strategic value.

“Energy storage is not a side note anymore, it’s quickly becoming a pillar of the energy system,” says Delyan Iliev, Managing Director of Renewable Energy Insurance Broker (REIB). “We’re proud to help accelerate that shift. In the first half of 2025, we’ve already insured over 5 GWh of battery projects across Europe – including in Bulgaria, Germany, and the UK. That scale shows how far the market has come, and how much trust there is in high-quality insurance.”

In Serbia, solar deployment is gaining pace, and developers are preparing for large-scale projects. Regulatory frameworks are evolving to support hybrid models that combine generation with storage. BESS is no longer just a technical upgrade; it’s a strategic enabler for grid stability, revenue optimization, and investor confidence.

What makes BESS riskier than traditional energy projects?

As storage projects become more complex, so do the risks. Unlike conventional solar or wind installations, BESS introduces specific technical and operational challenges—from thermal runaway and fire risk to cyber threats, component failure, and yield degradation. These are real risks requiring serious attention from insurers and developers alike.

Poor system design, such as insufficient spacing between battery units and PV modules, can also trigger insurance exclusions or delay permitting. “In emerging markets like Serbia, where regulations are still catching up with technology, project design and compliance can make or break an investment,” says Iliev.

This is why traditional, off-the-shelf insurance is no longer adequate. Storage requires a more nuanced approach – one that aligns with each project’s structure, revenue model, and operational realities.

REIB’s approach: Insurance that mirrors project reality

Recognizing this need, Renewable Energy Insurance Broker has created tailor-made insurance solutions designed specifically for energy storage systems. A cornerstone of its model is Business Interruption (BI) insurance – not a standard add-on, but a fully customized product. Rather than applying generic compensation formulas, REIB designs the BI structure around how each project actually earns revenue, whether through tolling agreements, profit-share arrangements, or hybrid mechanisms.

This precision ensures fair and effective compensation, not only when a system completely fails, but also when partial degradation or performance issues occur. Furthermore, the BI coverage accounts for income loss, not just profit, delivering significantly higher payouts in case of disruption. Indemnity periods can be extended up to 18 months, supporting the financial stability of a project well beyond initial damage control.

Why early-stage insurance is so critical for BESS

One of the most critical features in REIB’s offering is early-stage protection. The company insures storage projects from the installation phase, well before grid connection. This phase, often excluded by traditional policies, is one of the riskiest stages in a project’s lifecycle. By covering this early gap, REIB offers peace of mind to both developers and investors.

In addition, REIB’s policies include protection against underperformance (reduced yield), cyber risk coverage for systems managed via EMS or SCADA, and third-party liability, including sudden environmental pollution, which is increasingly relevant for permitting and compliance in European markets.

Applicable to co-located and stand-alone storage

While co-located solar + storage projects dominate the market, stand-alone BESS is gaining traction in Serbia and other Southeast European countries. These projects play a crucial role in grid balancing, frequency regulation, and capacity markets, especially in areas where renewable generation is unevenly distributed.

REIB’s insurance framework applies to both co-located and stand-alone BESS systems, adjusting coverage parameters to meet the distinct operational and revenue profiles of each. Whether tied to a solar plant or operating independently, these assets face risks that must be managed holistically.

What gives REIB its unique market perspective?

REIB is more than a broker, it’s also an investor. The company is directly involved in PV+BESS projects like the 4.1 MWp solar plant with 4MW/8 MWh BESS in Nikolichevtsi and the 5 MWp + 6MW/12 MWh BESS in Bagrentsi. “We don’t just assess risk from a distance,” says Iliev. “We experience it firsthand, and that’s what helps us design smarter coverage.”

How insurance can drive the BESS market forward

For REIB, insurance is not just a regulatory requirement; it’s a strategic lever. “Well-structured insurance improves bankability, secures investor confidence, and unlocks access to financing,” says Iliev. “In a sector like BESS, that can be the difference between stalled progress and market leadership.”

As Serbia and its neighbors move toward a new energy reality, battery systems will be central to the equation. Making them bankable, and insurable is where REIB steps in, helping to turn risk into resilience and innovation into long-term value.

For more information about tailor-made insurance solutions for BESS projects, contact the REIB team to explore how they can support your next project.

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