Interview with Delyan Iliev as Managing Director of Renewable Energy Insurance Broker in front of Energynomics Magazine
As Romania’s renewable market turns to battery energy storage systems (BESS) to stabilize the grid and meet decarbonization goals, the question isn’t if projects will happen, but how to make them bankable and resilient. Delyan Iliev, Managing Director at Renewable Energy Insurance Broker (REIB), shares practical insights from both advising and investing in storage energy projects across Europe.
De-risking Energy Storage – Best Practices for Romania’s Next Wave of Projects
From REIB’s experience advising developers across Europe, a recurring challenge lies in underestimated risks at the planning stage. Many investors overlook crucial exposures like Advance Loss of Profit (ALOP), which protects against lost revenue due to commissioning delays or transport and delay coverage for key components such as MV/HV transformers or batteries. These aren’t just technicalities; they directly affect a project’s financial timeline.
Just as importantly, regulatory and technical compliance is often underestimated. REIB frequently sees developers and investors move forward with system designs that later require expensive retrofits to meet insurer or lender requirements. Certifications like IEC 62933-5-2 or the UL 9540A test method are increasingly essential for permitting, financing, and insurance. IEC 62933-5-2 is an international safety standard that provides a structured framework for identifying hazards and reducing risk in grid-connected energy storage systems. It emphasizes protecting people and the environment and is particularly relevant for European projects where system-level safety is a top priority. UL 9540A is a large-scale fire safety test method used to evaluate thermal runaway and fire propagation in energy storage systems under worst-case conditions. It delivers critical data required by fire codes and insurers to assess safe installation practices and containment strategies. “When these aren’t considered from the start, you risk costly design changes midway through the project,” explains Iliev.
REIB strongly encourages involving insurance and risk advisors at the earliest stages. Risk assessment isn’t just about identifying threats, it’s about helping the project meet all external expectations and ensuring smoother progress through permitting and grid approval. Early-stage engagement means developers avoid being caught off guard by financial institutions or regulators.
Beyond protection, early-stage risk management builds long-term resilience. REIB structures insurance solutions that reflect each project’s specific needs, from construction-phase coverage to tailored business interruption models. These efforts don’t just reduce exposure, they send a clear signal to investors: this is a project that’s prepared for the unexpected.
Bankability and Insurance – Making Storage Investments Work
A comprehensive and well-structured insurance program is a core element in making BESS projects bankable. REIB has found that the earlier insurance is integrated into the financial modeling, the more comfort it provides to lenders. “For banks, it’s not just about insuring against failure,” says Iliev. “It’s about making the revenue stream dependable.”
Insurance designed to reflect the actual revenue model of a BESS, whether through tolling agreements, profit-sharing structures, or hybrid approaches, reassures lenders that even if things don’t go according to plan, financial stability can be preserved. By aligning the business interruption structure with the specific revenue mechanics of the project, REIB helps ensure that coverage matches the real financial risks developers and lenders care about. Business interruption coverage that compensates based on income rather than just profits, or reduced yield protection that responds to technical underperformance, is especially useful in today’s evolving market.
In financing environments where risk appetite is tight, REIB has seen that features like extended indemnity periods, assignability to lenders, and the absence of critical exclusions (such as battery fire or cyber-related risks) can be pivotal. Investors and banks alike respond positively to a structure that mirrors their concerns and protects against multiple downside scenarios.
Developers can take a structured approach to risk management by tailoring coverage to their project type. Solar + co-located BESS projects, for example, need integrated policies that reflect interdependencies between components. Stand-alone BESS assets, on the other hand, often rely on merchant revenues and require more attention to operational risks. Either way, REIB recommends building a risk framework that includes early-stage technical consultation, appropriate insurance products, and clear communication with lenders from the outset.
Building Confidence in Energy Storage
REIB brings a unique perspective to BESS risk management, having not only advised clients across Europe, but also invested directly in PV+BESS projects. Projects like Nikolichevtsi (4 MWp + 4 MW/8 MWh BESS) and Bagrentsi (5 MWp + 6 MW/12 MWh BESS) in Bulgaria have taught the team firsthand what works and what doesn’t. “We learned very quickly that issues like fire protection, proper spacing between systems, or reliable EMS backups are not minor details, they can determine whether a project gets insured or delayed indefinitely,” Iliev shares.
From design to execution, REIB applies this practical insight to support clients. Developers in Romania looking to integrate BESS into their projects or stand-alone BESS should not treat insurance as a final checkbox, but as a strategic element of the development process. Consulting with REIB early, before finalizing layout, selecting components, or choosing contractors, ensures that key design and operational decisions align with safety, compliance, and insurability. “Asking the right questions at the right time is what prevents costly delays and redesigns down the road,” says Iliev.
Romania is entering a critical growth phase. The country is currently at around 400 MWh of installed battery storage, but plans are ambitious: the government is targeting at least 2.5 GW of BESS capacity by the end of 2025 and aiming to surpass 5 GW by 2026. With many new projects designed as hybrid wind or solar-plus-storage and older renewable assets being retrofitted with batteries to enhance performance and grid compliance, now is the time to standardize best practices. Drawing on its international expertise, REIB has already insured over 6 GWh of storage capacity across Bulgaria, Germany, and the UK—experience that can directly support the rapid and secure growth of Romania’s storage sector.
REIB sees its role as more than just structuring insurance. It’s about helping developers and investors align with international standards, access global capital, and avoid mistakes that could delay the entire sector’s maturity. This commitment also extends to our active support for Solar Power Europe and its new Battery Storage Europe Platform, where we are one of the three strategic sponsors and contribute to shaping the EU’s regulatory framework for BESS. As Iliev puts it: “Managing risk is what unlocks scale. Storage will shape Romania’s energy future, and the right risk strategy will ensure it’s built to last.”
