Altelium and TMK partner on first data-driven insured warranty for battery energy storage systems
We delighted to announce that Altelium has partnered with TMK to deliver the world’s first data-driven battery energy storage system (BESS) warranty programme. This new warranty programme will help accelerate growth in the battery energy storage market – a vital component in the race to reduce carbon emissions and achieve energy security.
BESS enable renewable energy to be stored and then released when customers need power, enabling electricity grids to ensure a reliable supply. This type of technology plays a key part in ensuring homes and businesses can be powered by green energy, irrespective of whether the wind blows or the sun shines. It is expected that BESS will play an increasingly pivotal role in filling the gap between green energy supplies and meeting electricity demands.
Initially supported by the government innovation agency, Innovate UK, Altelium’s warranty is built on an understanding of battery properties, behaviours and data analytics. Through its advanced online platform, every aspect of the warranty from data capture, performance and risk assessment, pricing of the premium, issuance, claims, to reporting and invoicing, is carried out through a single portal.
Altelium’s product brings together in-depth expertise with A-rated capital through its partnership with TMK to give storage providers the time and confidence to focus on growth. The benefits of the warranty are that it will:
- Facilitate the use of – and trade in – second life batteries for BESS, which will be a cornerstone of the battery circular economy. Valued at USD 10.37 billion in 2020, the global energy storage market it is expected to reach USD 37.06 billion by 2027[i].
- Enable manufacturers who purchase it to free up ‘trapped capital’ allowing greater resources to be focused on growth.
- Give customers confidence in mitigating the impact of potential manufacturer insolvency, with the backing of ‘A’ rated insurance capital.
- Improve the availability and terms of finance due to a lower risk profile providing improved ‘bankability’.
- Decrease technology and operational risk for customers, while also improving their assets’ financial profile.
Tom Hoad, Head of Innovation at TMK, said: “We are all aware of the urgent need to improve energy security and slash carbon emissions, partnering with start-ups like Altelium helps us support this. Providing insured warranties for BESS will unlock the deployment of large-scale capital investment.
“One of the most significant ways the insurance industry can support the transition to a sustainable, low carbon future is to create a range of insurance products that encourage the deployment of renewable energy into our everyday lives. This insured warranty product supports that transition.”
Co-founder of Altelium, Ed Grimston, added: “Altelium’s core aim is to help accelerate the transition to renewables by providing a real-time data driven insurance solutions 1st life and 2md life BESS and EVs.
“We are delighted to introduce this product to the market. Market and client reaction has been tremendous. We look forward to working with our clients and broker partners to deliver these solutions across the market.”
Second life batteries
The supply of raw materials is a worldwide issue and using second life batteries will increase material utilisation and thereby reduce demand for materials. It will also significantly reduce carbon emissions. A report conducted by International Council on Clean Transportation[ii] estimates that reusing an EV battery extends its lifetime by 72 per cent and Connected Energy, a specialist in second life battery storage systems estimates that over its lifetime in operation, a second life BESS can save an additional 450 tonnes per MWh of CO2 equivalent[iii] compared to using first life batteries.
Battery storage in stationary applications is projected to grow to 235 GW by 2030, which illustrates the staggering opportunity to reduce carbon emissions that second life vehicle batteries offer.
The Intergovernmental Panel on Climate Change’s (IPCC) Sixth Assessment Report highlighted that we have the tools to make fast cuts to carbon now. This warranty and the other customised battery insurance products Altelium offers are just the sort of investment tools needed.
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