AVON, Conn., December 19, 2023— In a groundbreaking move, New Energy Risk (NER) and Ascend Analytics, LLC (Ascend) have announced the successful conclusion of an unprecedented energy storage insurance policy. This policy, a first in the industry, provides coverage for the performance of Ascend’s battery storage forecasting and bidding optimization platform. The collaboration marks a significant milestone, enabling the financing of a portfolio of grid-scale energy storage facilities within the Texas ERCOT power market.
NER, a prominent insurance agency specializing in technology solutions for the energy transition, acts as a vital intermediary between technology innovators, their customers and lenders, and the insurance markets. Ascend Analytics, recognized as a leader in energy market valuation and dispatch optimization, has conducted independent economic assessments supporting over 100 project financings. Their SmartBidder™ platform performs live dispatch operations across six ISOs in the United States.
The energy storage insurance policy guarantees the performance of Ascend’s forecasting and SmartBidder™ technology stack, providing a secure revenue foundation to the project over a multi-year term. Unlike alternative revenue risk transfer solutions, this offering not only ensures minimum revenues but also grants projects access to potential upside revenue from lucrative, high-volatility events regularly experienced in ERCOT.
The introduction of new energy storage capacity is a crucial facet of the ongoing energy transition, enhancing flexibility and resilience in the grid to facilitate the integration of more renewable capacity.
Tom Dickson, CEO at NER, highlighted Ascend’s pivotal role in the market, stating, “Ascend’s storage valuation has supported a majority of batteries operating in competitive power markets. In addition to SmartBidder’s proven bid optimization capability, Ascend leads the market in their ability to provide the analytics required to assess and actively manage energy storage market risk. NER has been able to apply its modeling expertise of highly technical risks to Ascend’s robust framework to implement a precise transfer of risk.”
Gary Dorris, CEO of Ascend Analytics, emphasized the significance of the partnership, stating, “This offering with NER helps developers confidently deploy capital to support merchant storage operations by providing a revenue floor while preserving the upside potential of ERCOT’s more extreme events. The innovative downside risk coverage enabled the storage developer to earn minimum returns, facilitating asset financing and furthering the transition to reliable clean energy in Texas.”
About New Energy Risk
Founded in 2010, New Energy Risk is a pioneer in providing innovative technical risk transfer solutions to sustainable industries globally. The company has played a crucial role in developing large-scale technology performance insurance, acting as a bridge between clean-energy innovators and insurers. New Energy Risk has facilitated over $3 billion in financing and sales for renewable energy and new technology deployments.
About Ascend Analytics
Ascend Analytics, positioned at the forefront of the energy transition, offers advanced software and consulting services capturing the real-time dynamics of energy markets. Providing optimized decision analysis from long-term planning to real-time operations in the electric power supply industry, Ascend Analytics contributes to the evolving landscape of the energy sector.