Executive Summary
- Allianz UK is expanding its underwriting capability for battery energy storage systems, designed for mid-market energy clients, in an announcement which can be seen as a sign of further growth in BESS
- Reforms to the Planning and Infrastructure Act which came into effect last week point to larger-scale, higher-value BESS projects getting off the ground – which has a knock-on effect for insurers
- Christian Simpson of Allianz UK said BESS was a ‘developing area of risk’, making conversations with ‘experienced underwriters and renewable energy specialists… so valuable’
Allianz UK is giving its brokers specialist support for customers with renewable energy projects by expanding its underwriting capability for battery energy storage systems (BESS).
The company noted that, as the UK accelerates its transition to low-carbon energy with battery storage becoming an increasingly important part of the equation, brokers require greater demand for insurer partners with experience to support clients in this space.
The expanded capability has been designed for mid-market energy clients and ‘can be tailored to provide customer-led solutions for complex risk features’, Allianz noted, adding that it is part of the company’s wider renewable energy strategy.
Onshore generating stations, including battery storage, are classed as Nationally Significant Infrastructure Projects (NSIPs) once capacity exceeds 50 megawatts. This means they require a specific Development Consent Order rather than standard local planning permission. Yet reforms to the Planning and Infrastructure Act 2025, taking place from last week, aim to speed up the NSIP consenting process. As Insurance Business outlines, this is key because it points to larger-scale, higher-value BESS projects reaching construction and operation more quickly, leading to a knock-on effect for insurers both in monetary terms and technical complexity.
According to an analysis published earlier this month by GapSense, however, more than 80% of grid-scale BESS appeals have been allowed, comparing favourably with the all-development average for planning appeals in England which stand at just under a third (31.1%).
In terms of risk elements, Insurance Business noted fire risk as the key, with thermal runaway – the chain reaction after a damaged lithium-ion cell released heat – the ‘dominant concern for underwriters.’ In June, the Electricity Storage Network (ESN), in a report answering key BESS questions for UK stakeholders, put overall fire rates at battery sites at 0.7%, slightly lower than the average for non-domestic buildings in England (0.8%).
Regarding thermal runaway in particular, the ESN report noted: “As large battery storage systems contain many individual cells, there is a small risk that one failing cell could affect neighbouring ones. However, cells are specifically engineered to prevent this.”
“Battery energy storage is becoming an increasingly important part of the UK’s renewable energy infrastructure, and brokers are seeing more clients exploring opportunities in this space. It’s a developing area of risk, which is why early conversations with experienced underwriters and renewable energy specialists are so valuable,” said Christian Simpson, head of construction, engineering and energy insurance, technical and underwriting at Allianz UK.
“This enhanced proposition underscores Allianz’s commitment to supporting the transition to net-zero solutions by providing comprehensive insurance product for low-carbon technologies and renewable energy projects.
“By working closely with Allianz Commercial, we’re giving brokers clearer access to the right expertise across Allianz. We want brokers to feel confident bringing BESS opportunities to us so we can understand each project, look at the controls in place and discuss where we can support both the broker and the customer,” added Simpson.
