USQRisk and Ascend Analytics have closed a breakthrough energy storage insurance structure to encourage clean energy investment.
USQRisk, an international managing general agent specialising in alternative risk transfer solutions, aim to expand the development of energy storage projects.
USQRisk president Michael Zipper explains: "This new insurance offering creates greater opportunities for the clean energy industry to gain access to more efficient financing for utility-scale energy storage projects.
“Now, institutional investors have a more effective tool to demonstrate revenue certainty and reduce financing risk, thereby expanding the potential for the development of energy storage projects."
Ascend’s understanding of developer needs and its end-to-end suite of analytic and pricing products will provide the product the data and analytics it requires.
USQ can structure, price and tailor the revenue protection coverage to meet the unique needs of individual utility-scale energy storage projects.
The insurance policy developed by USQ and Ascend, managed by UBS Asset Management's real estate and private markets business, will provide revenue coverage for an Energy Reliability Council of Texas energy storage project scheduled to commence later this year.
Adam Hise, managing director at Ascend Analytics, says: "We've seen firsthand how revenue risk is slowing the energy transition. Our new revenue protection insurance offering with USQRisk gives sophisticated investors like UBS Asset Management an alternative to traditional merchant and tolled battery financings, and is an evolutionary advancement for the industry.”
