Post - Blog
Oli Williamson, Co-Founder and Chief Underwriting Officer, Aspect
World Utilities Congress 2027
Renewable energy has become a central part of the UK's electricity system, accounting for more than half of electricity generation in 2025, according to government figures . However, increasing renewable generation is only one part of the challenge. Delivering Net Zero will also depend on building the infrastructure, confidence and risk management frameworks needed to support new technologies at scale.
As the UK’s electricity network becomes increasingly reliant on renewable generation, battery energy storage systems (BESS) will play a vital role in managing fluctuations in supply and demand. By storing excess electricity when renewable output is high and releasing it when demand increases, BESS provides the flexibility needed to support a more reliable energy system.
With grid-scale battery storage capacity continuing to expand, ensuring these projects are supported by effective risk management and specialist insurance will become increasingly important.
The insurance challenge behind the energy transition
Much of the conversation around battery storage focuses on planning, investment and engineering, while less attention is given to the role insurance plays in helping projects progress from development to operation.
Insurance is often viewed simply as a financial safeguard, yet its influence begins long before a policy is issued. Detailed, tailored underwriting helps identify potential risks, evaluate mitigation measures and encourage stronger operational standards throughout a project's development. This is particularly important because no two BESS facilities are the same.
Site layout, fire detection and suppression systems, maintenance strategies, operational procedures and emergency planning all contribute to a project's overall risk profile. Assessing these factors requires technical expertise and a detailed understanding of how different risks interact.
Rather than applying broad assumptions across an emerging sector, specialist underwriting enables insurers to distinguish between projects that have invested in comprehensive risk management and those where further improvements may be required.
While battery storage is a key example, the same challenge applies across the wider renewable energy sector, where emerging technologies require insurers to develop a deeper understanding of evolving risks and changing operational environments.
This distinction is becoming increasingly important as investment in renewable infrastructure accelerates, and for developers, securing appropriate insurance is not simply a compliance requirement. Insurance can influence whether projects are able to secure funding, progress through development and operate successfully over the long term. Without a clear understanding of risk, emerging technologies can face unnecessary barriers to deployment.
Underwriting as a driver of better projects
Engaging insurers early in the development process gives developers an opportunity to strengthen projects before construction begins. Whether that means refining site layouts, reviewing fire protection measures or improving operational controls, underwriting can contribute to better-informed decisions that improve resilience over the lifetime of a facility.
Investors and lenders gain greater confidence that projects have been subjected to rigorous assessment, planning authorities receive greater assurance that safety has been considered, and local communities can see that potential risks have been evaluated using specialist expertise rather than broad assumptions.
Recent planning debates around battery storage developments demonstrate why building confidence will be critical to the sector’s future growth. A proposed BESS facility near South Hetton in County Durham, for example, faced significant local opposition over safety concerns, despite planning officers recommending approval. While these concerns are understandable, they highlight the importance of ensuring risks are assessed using evidence, robust safety measures and project-specific information rather than broader perceptions of battery technology.
By taking this approach, specialist underwriting can help build the confidence needed to support investment, strengthen public trust and enable the continued growth of renewable infrastructure.
Moving forward
Battery storage technology is advancing quickly, and the way risks are assessed needs to evolve alongside it. As new designs, safety measures and operating practices emerge, insurers must continue building their understanding of the sector to ensure decisions reflect the latest evidence and expertise.
Taking an overly cautious approach to emerging technologies may appear to reduce risk in the short term, but it can also limit investment in the infrastructure needed to create a more flexible and resilient energy system. Climate change itself remains one of the most significant long-term risks facing businesses, economies and insurers alike, making the safe deployment of renewable infrastructure increasingly important.
Delivering the UK's Net Zero ambitions will require collaboration between developers, engineers, policymakers, investors and insurers. Historically, insurance has enabled businesses to take on new challenges by providing the expertise needed to understand unfamiliar risks. The energy transition presents a similar opportunity. Insurance alone cannot drive the transition, but specialist underwriting can help create the confidence needed for investment, encourage higher safety standards and support the continued deployment of critical energy infrastructure.
As renewable technologies become an increasingly important part of the UK's energy landscape, the role of insurance should not simply be to respond when something goes wrong. Instead, it should help ensure projects are designed, assessed and managed in a way that gives businesses, investors and communities the confidence to embrace the next stage of the energy transition.