The New Face of Risk: Why Battery Energy Storage Projects in Romania Need a New Kind of Insurance

Energy Storage on Romania’s Horizon

Romania is entering a new phase in its energy transition, characterized by robust growth in renewable capacity and a significant push for flexibility through energy storage. According to a recent government report, over €14 billion in EU funds have been mobilized to support the sector, with significant progress already made: more than 1,800 MW of new capacity have been added to the grid, and another 3,000 MW are under development. Battery Energy Storage Systems (BESS) are at the center of this transformation, with new tenders and financing tools paving the way for increased deployment in the years to come. In this evolving environment, understanding and managing new risks is critical.

Unique Risks Call for Tailor-Made Solutions

As renewable energy capacity grows rapidly, so does the need for greater grid flexibility, balancing mechanisms, and revenue optimization. That’s where BESS becomes essential, not just as a technical solution, but as a key enabler of financial stability and long-term project viability for developers and investors.

Yet the rise of BESS introduces a new layer of complexity. Unlike traditional solar or wind projects, storage systems bring unique operational and financial risks: from thermal runaway and fire incidents to cyber vulnerabilities, component failures, and yield reduction. Poor project design, including insufficient spacing between batteries and PV panels, can delay grid approvals or even trigger major insurance exclusions.

These risks demand a fundamentally different insurance strategy—one that moves beyond traditional templates and aligns with the dynamic nature of storage systems and their revenue streams.

REIB’s Approach: Insurance That Reflects Project Reality

Recognizing this shift, Renewable Energy Insurance Broker (REIB) has developed specialized insurance terms specifically for BESS projects. These go far beyond standard policies by tailoring coverage to the specific risk and revenue models of each project.

A key element of our specialized coverage is the Business Interruption (BI) insurance. Rather than using generic formulas, we tailors the BI structure to the project’s specific revenue model – be it tolling, profit-sharing, or a hybrid approach. This ensures fair and realistic compensation not only in cases of full system failure, but also when performance is partially reduced. Additionally, the coverage is based on loss of income rather than profit alone, allowing for significantly higher payouts when disruptions occur. Coverage can be extended for up to 18 months, a particularly valuable feature for projects recovering from major damage or performance issues.

From Day One: Protection Before Grid Connection

One of the key factors that makes REIB stand out is its insurance protection from the very early stages of a project. BESS projects are typically exposed to high risk before they are connected to the grid, when construction, commissioning, and integration challenges are at their peak. Most traditional insurers avoid coverage during this phase. REIB, however, provides full protection starting at the installation phase, giving developers and investors peace of mind from day one.

In addition, policies include protection for reduced yield (in case actual performance falls below expectations), as well as cyber risk coverage for digitally managed systems such as EMS and SCADA. Third-party liability, including sudden environmental pollution, is also included, an increasingly relevant consideration in permitting and environmental risk assessments.

A Strategic Tool for Growth, Not Just Protection

In REIB’s philosophy, insurance is not just a formal requirement, it is a strategic enabler. Well-structured insurance makes BESS projects bankable. It supports long-term cash flow stability, investor confidence, and access to financing. In short, it transforms an emerging, high-risk asset class into a mature, investable opportunity.

As Romania embraces energy storage on a wider scale, managing risk is what will separate viable projects from vulnerable ones. When that risk is understood not just from an insurer’s desk, but from the ground level of active investments, confidence becomes more than a promise, it becomes a product.

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