12 March 2019 11:30
The global reinsurer Munich Re has embarked on the coverage of industrial battery that can store large amounts of energy. The reinsurer asserts that it is the first program of its kind.
“The ability to ensure the performance of batteries is a key piece of the puzzle in the decarbonisation of the energy sector. For the first time, the manufacturers of batteries can insure against the risk that their product does not deliver the goods promised. With this new coverage, Munich Re once again demonstrates its pioneering role in the insurance of environmental technologies “, stresses Peter Röder, director of the board of directors of Munich Re.
Ensure a warranty of ten years
The product covers the performance warranty of the manufacturer for a period of ten years and the cost of repair or replacement of battery modules that are defective or weak, if they exceed a predetermined amount.
Munich Re said that it is primarily for major projects, such as those that ensure the stability of the power network or that cover periods of peak demand. Subsequently, it will be offered in the mobility market, for example to ensure the performance of batteries in electric vehicles.
“Easier to get investments”
The reinsurer promises that with the coverage, it will be easier for companies to obtain project financing, ” since the cost maximum for the guarantees will be capped by the insurance.
“This is a determining factor for investors, is supporting Munich Re. This product greatly simplifies the deployment of the capacity of the battery by the manufacturers, thus making renewable energy more reliable and more widely available. “
Product insurance can also cover certain investment projects and may indemnify even if the manufacturer who issued the guarantee becomes insolvent during the guarantee period.
The first customer of the program is the american company SSE, which produces battery modules fixed to store the energy parks, solar panels and network operators over long periods of time.