United States Login The perils of battery storage are complex. Do your clients know what they’re up against? Battery storage is becoming a critical part of the grid Today, it takes only one millisecond to tap into stored energy to satisfy a customer’s need. Battery storage is key to facilitating this transfer. The decline in average battery pack prices by 89% since 2010, is helping to drive growth in the in the battery storage industry, making it increasingly competitive. Now energy storage has the potential to play a major role in maintaining a more stable supply of electricity across the whole power grid.1 Scroll down According to BloombergNEF battery storage systems are already competitive with Open cycle Gas Turbines2 Up 741 gigawatt-hours (GWh) of cumulative capacity by 20303 US to have 49% of global cumulative capacity by 20303. The risks facing battery storage projects As a new technology, the risks around Battery Energy Storage are still evolving. If installed and managed correctly the risk of battery failure is seen to be small. Despite this the Lithium-Ion (Li-Ion) battery storage industry has been plagued by a series of project fires, most notably in South Korea. These events caused varying levels of damage to the battery systems themselves, but in April 2019, an explosion at a battery storage project owned by the utility Arizona Public Service (APS), destroyed the project and injured four firefighters.4 If a battery is going to catch fire, the likely cause is thermal runaway. This is when a battery experiences an increase in temperature that eventually leads to cell short-circuiting or disintegration that can spark a fire. There are three main abuse factors that can send a Li-Ion battery into thermal runaway: mechanical, thermal or electrical. Mechanical Physical damage to the unit, which can generate gases or increase the heat of a battery cell. Thermal Air conditioning or airflow not reaching the cells, allowing heat to build up. Electrical A fault within a battery cell caused by a defect or improper operation. To minimise the risk of thermal runaway occurring the integrity of the cells and the way that the battery system is operated should be managed very carefully. Fire detection and suppression design also has an important role to play in halting a fire before thermal runaway starts. Lifecycle From the moment the equipment leaves the factory, during transportation, throughout installation, during operation and right through decommission, AXIS covers the entire project lifecycle. Resources Wildfire, hail and floods The top three secondary perils to consider when future-proofing a project View our wildfire briefing pack View our flood briefing pack View our hail briefing pack Whitepapers Questions? Contact us. Learn More about how AXIS can help you with all of your battery storage project needs. Have a question? Contact us for more information Explore the lifecycle of your renewable energy project from pre-construction through decommission. See every stage. Solar Wind Battery storage 1 Energy Storage NEWS 2 Energy Storage NEWS 3 Wood Mackenzie 4 Greentech Media Insurance As a specialty insurer, our expertise runs deep — we're not afraid to take on complex risk profiles and volatile lines. Show more Reinsurance It's a new era for reinsurance — one that requires a bold, fresh approach to how we do business around the globe. Show more Who We Are Our expertise in specialty insurance and global reinsurance runs deep. Show more Careers If you’re searching for a career where you can help redefine insurance, explore our latest employment opportunities. Investors Our financial strength builds trust. Contact Us Terms of Use Privacy Notice Cookie Policy Communications Disclosure © 2021 AXIS Capital. All right reserved. This information is for descriptive purposes only and does not provide a complete summary of coverage. Refer to the applicable policy for specific terms, conditions, limits, limitations and exclusions to coverage. Coverage is underwritten by a member company of the AXIS group of insurance companies and may not be available in all jurisdictions. *Total capital represents the sum of total shareholders' equity and debt † Ratings of insurance and reinsurance subsidiaries of AXIS Capital Holdings Limited Contact us News Broker Resources AXIS Contact Us Filters entire site Meet the team Tap to add to your contacts Download .VCF Contact Card Tap to add to your contacts Download .VCF Contact Card By clicking “Accept All Cookies”, you agree to the storing of cookies on your device to enhance site navigation, analyze site usage, and assist in our marketing efforts. Our Cookie Policy Cookies Settings Accept All Cookies Cookies Settings