New Revenue Insurance to Remove Downside Risk of Merchant Storage

March 21, 2024



Batteries are uniquely poised to earn supernormal returns during the energy transition. However, the long-term uncertainty of storage value, as well as the variability of revenue capture by storage, can challenge the ability of low-risk, low-cost investors to provide the capital needed to accelerate renewable energy storage deployment across the U.S.

In a recent webinar, Dr. Gary Dorris, CEO of Ascend Analytics, and Adam Hise, Managing Director of Storage Risk Solutions, discussed how Ascend's EnSurance™ revenue insurance solution can help accelerate storage deployment by transferring market risk away from assets so as to enable more efficient storage project financing.

Key Takeaways

  • In the wake of the Inflation Reduction Act (IRA), storage deployment has accelerated across all U.S. energy markets. Supporting the pace and scale of storage deployment over the coming years will require massive infusions of capital investment.
  • Even though renewable-driven price volatility creates additional value opportunities for energy storage, the variable value of energy storage, both at annual and more granular levels, can pose problems for risk-averse investors.
  • Structurally changing energy markets, in which renewable-driven price volatility becomes the norm, offer strong opportunities for maximizing returns in ways that cannot be met by standard PPA tolling agreements that provide fixed, low-earning returns.
  • Ascend's EnSurance, in conjunction with Ascend's ecosystem of product offerings, uniquely supports energy storage revenue risk transfer by placing weather at the center of forecasting price formation, thus allowing a probabilistic view on the value that a battery can capture going forward.

Access the full webinar now.

Interested in Learning More? 

EnSurance™ enables efficient merchant storage financing by transferring revenue risk to investment-grade counterparties, empowering developers to maximize upside returns while protecting against downside risk. Contact us to learn more.

About Ascend Analytics

Ascend Analytics, an innovative leader at the forefront of the energy transition, offers advanced software and consulting services that capture the evolving and real-time dynamics of energy markets. The company provides its customers with optimized and comprehensive decision analysis that covers everything from long-term planning to real-time operations in the electric power supply industry.