As Romania accelerates its energy transition, a growing number of utility-scale solar projects are integrating co-located battery energy storage systems (BESS). These hybrid developments where solar plants and storage operate side by side are no longer just technically innovative. They are becoming financially and strategically necessary.
Why Co-Located Storage Matters
The advantages of co-located storage systems are clear. Shared infrastructure between solar or wind plant and storage significantly reduces capital expenditures. At the same time, energy can be managed more intelligently – dispatched when prices are highest, stored when production exceeds demand, and protected from curtailment or grid instability. In a market shaped by volatility and growing regulatory pressure, this combination offers both resilience and profitability.
Stand-Alone BESS on the Rise
While co-located storage is gaining traction, Romania is also witnessing an increasing number of stand-alone storage projects, designed to operate independently of generation assets. These systems offer flexibility to grid operators and open new opportunities in ancillary services, balancing markets, and arbitrage strategies. However, they also present unique risk profiles, with different contractual structures and revenue mechanisms. Insurance for these projects must reflect those distinctions.
New Opportunities, New Risks
Whether integrated with a solar farm or deployed independently, BESS units introduce a wider range of technical, operational, and safety considerations that most conventional insurance products do not fully address.
With more than 14 years of experience and over 5 GWp of solar plants and more than 5 GWh of storage insured globally, Renewable Energy Insurance Broker (REIB) is helping Romanian developers and investors navigate this evolving landscape. The company currently covers over 30% of the solar sector in Romania – both in development and operational phases, and sees growing demand for comprehensive coverage that aligns with co-located project realities.
REIB’s Specialized Coverage for Energy Storage
Standard insurance approaches often fall short when it comes to the unique risks posed by storage systems. From mechanical failure, fire events, and thermal runaway to yield reduction, cyber threats, the financial impacts of these issues can be significant. Furthermore, inefficiencies in storage design or layout – such as insufficient distance between battery units and PV modules, can introduce additional risk and even delay permitting or insurance approval.
REIB addresses these challenges with a suite of specialized insurance solutions tailor-made to the storage sector. One of the most important features is how Business Interruption (BI) compensation is calculated. Instead of applying generic formulas, REIB uses a customized methodology based on the project’s revenue mechanism – whether tolling, profit-share, or hybrid. This approach enables more accurate protection for revenue loss, even in cases of partial damage, not just total system outages.
Protection from Day One
Another essential element is early-stage protection. REIB provides insurance cover for storage projects even before they are officially grid-connected – a phase where traditional insurers often decline coverage. Loss of income (instead of profit) is covered, offering clients higher compensation in case of disruption. The company also offers an extended Loss of revenue indemnity period up to 18 months, as well as protection against underperformance when energy generation falls below expectations.
From Investor to Risk Advisor
This expertise is underpinned by REIB’s dual role – not only as an insurance broker working with A-rated partners in the US and Europe, but also as an active investor in renewable energy projects. The company’s involvement in co-located investments like the 4.1 MWp solar power plant with 4MW/8 MWh BESS project in Nikolichevtsi, BG and the 5 MWp solar power plant with 6MW/12 MWh BESS in Bagrentsi, BG gives its team a first-hand understanding of both the technical and financial dynamics at play.
Enabling Bankable Energy Projects
Co-located and stand-alone storage are not just about flexibility, they’re essential about building the next generation of renewable infrastructure. It helps stabilize the grid, improves energy access, reduces environmental impact, and maximizes the value of every kilowatt-hour generated. For Romania, where solar capacity is expanding rapidly, integrating BESS is a critical step toward long-term reliability and energy market maturity.
But to unlock its full potential, these projects must be insurable. Bankability depends not just on technology, but on confidence – confidence that financial risks are managed, revenue streams are protected, and regulatory requirements are met. Insurance plays a central role in that equation.
REIB’s approach is simple: understand the risk, design smarter protection, and help clients turn innovation into long-term value.
For more information about energy storage insurance and tailored risk strategies – whether for co-located or stand-alone projects – the REIB team is available to help assess and support your next investment.