Overview

Stand-alone merchant storage assets have struggled with financing options due to uncertainty in projected revenues and uncertainty in the market. The Brown & Brown 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
• Over 50% of the insurance premium may be deferred and paid through revenue upside quarterly
• Starting at $60M aggregate limit per project

Insurable Risk

• Creates and covers inaccuracy of the project development revenue forecast
• Deficiency or inaccuracy of the bidding algorithm
• Option to add coverage for 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
• Supported by a consortium of S&P A-rated insurers

Bonnie Lind

Vice President, Business Development