Global Energy | Revenue Wrap for Merchant BESS Projects

Overview

Stand-alone merchant storage assets have struggled with financing options due to uncertainty in market based revenue streams and a revenue forecast that is accepted by financial institutions. The Brown & Brown Global Energy & Climate Tech team brings a new product that sets a five year revenue forecast and wrap, covering up to 70% of projected revenues.

Stand Alone Merchant Storage Revenue Coverage

Merchant BESS Project

Forecast and Bidding

• Coverage sized to meet debt service, plus OPEX or minimum dividends to equity, while retaining access to revenue upside, settled quarterly
• Option to defer up to 50% of insurance premium. Payment can be through received revenues, settled quarterly
• Current aggregate limit per project is $60M

Insurable Risk

• Creates a project revenue forecast that is covered by this insurance product.
• Covers deficiency or inaccuracy of the project-based bidding algorithm
• Option to add cover for lack of physical battery performance

Policy Features

• Up to five years of coverage to match the ITC recapture term
• Non-cancellable/non-renewal-based policy
• Revenue upside accrues to the project owner
• Product is supported by a consortium of S&P A-rated insurers

Bonnie Lind

Vice President, Business Development