A new report co-published by Axis Insurance, a business segment of Bermudian-based Axis Capital Holdings Ltd, examines challenges and opportunities in the $19 billion global energy storage market.

It specifically looks at the fast-growing battery storage sector, and is aimed at businesses, governments, utilities and other organisations.

The report is titled Energy Storage: Opportunities & Challenges, and it has been co-published by Axis and The Renewables Consulting Group.

It was co-authored by Steve Freeman and Lee Clarke, who are both directors at RCG. There was further input and consultation from the Axis Renewable Energy team.

Dr Freeman said: “The benefit of and need for battery storage technologies is clear. But as in any rapidly maturing market, where new technologies are evolving at different rates of commercial readiness, deployment is complex and comes at a price.

“This report aims to provide stakeholders in the global energy storage market with an objective analysis of the opportunities and risks associated with battery storage so they can make an informed decision about what is right for their regions or business.”

The report explores ways to protect against some of the underlying risks associated with battery storage. Those risks include technical risks, such as hazardous materials, operational limits, safety issues and physical damage.

There are also commercial risks regarding the quality of product, third-party damage and operational risks; market risks, such as competition, overcapacity and unreliable manufacturers; and natural event risks, for example water damage and seismic activity.

Richard Carroll, senior vice-president and Global Head of Renewable Energy, Axis Insurance, said: “Battery storage is an exciting and transformative technology that can help the global economy better manage electricity production and storage.

“The international energy markets are anticipating a rapid expansion of the global battery storage sector. Applications need to be considered on a case-by-case basis to ensure technical and commercial risks are adequately considered and that a plan exists to manage those risks.”

He added: “Axis is a major provider of insurance for renewable energy worldwide. We have developed a bespoke insurance product to cover battery storage exposures, and look forward to partnering with customers in this exciting growth sector.”

The report can be downloaded at www.axiscapital.com.