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BESS Risk Management

Explore the critical safety risks and strategic management of Battery Energy Storage Systems (BESS) essential for integrating renewables and ensuring grid stability in the Middle East and beyond.

10/04/2026 · 3 minute read

Exploring the critical safety risks and strategic management of Battery Energy Storage Systems (BESS) is essential for integrating renewables and ensuring grid stability in the Middle East and beyond.

Global renewable power capacity is increasing by 15.1%1 year-on-year, with the worldwide total already exceeding 4,400 GW. In the MENA region alone, renewable capacity is set to triple by 2030 – potentially reaching 150 GW2 (up from just 53 GW in 2023).

In a global bid to balance the inconsistent generation of renewables with the ‘baseload’ generation of conventional power, battery energy storage systems (BESS) are booming.

BESS are not just fundamental to grid stability - they facilitate the integration of renewables, close energy access gaps, enable load shifting, and boost resilience across industries where energy security is paramount.

The critical importance of BESS is clear, but risks like thermal runaway, system degradation, tech maturity, operational hazards, and supply chain factors must be understood and managed. Integrated BESS projects often heighten risk factors, especially cases involving solar that call for tight co-ordination of inverter capabilities and thermal management systems. SPPC Round 6 is a prime example, featuring four 500MWh BESS projects.

Tomorrow’s industry leaders will be those that successfully identify safety risks and ground their approach in a robust strategy.

Isolating Safety Risks

Thermal runaway is the primary risk factor facing BESS projects, which is a rapid, uncontrolled increase in temperature within a battery cell that can result in fire or explosion. The Middle Eastern climate magnifies this risk, emphasizing the crucial importance of cooling capabilities and weatherproof enclosures.

Comprehensive planning and early engagement with the relevant regulators and insurers is crucial to integration and safety – compliance also promotes bankability. Preparations must be made for worst case scenarios as part of this, which includes equipping local fire brigades with the training and knowledge to extinguish BESS-related (electrical) fires, which may differ from typical property fires local brigades may be used to.

BESS project insurability also hinges on international safety standards being adapted for local conditions, with prime examples including the International Electrotechnical Commission (IEC), Underwriters Laboratories (UL), and National Fire Protection Association (NFPA 855).

Grounded in Strategy

Preventing the escalation of BESS-related risks calls for the right protocols to be put in place, covering design, installation, and monitoring. Open dialogue and effective relationships with OEMs must be maintained to ensure access to critical safety information, root cause analysis, knowledge transfer, and compliance support.

On the subject of compliance, a comprehensive strategy is also advantageous when it comes to meeting regulatory requirements. This is essential for entities operating in markets with evolving regulatory frameworks, and for those seeking capital investment and bankability.

Robust BESS strategies are also vital to long-term sustainability goals, with targets becoming increasingly ambitious. Prime examples include India’s mission to reach 500 GW of renewable energy by 2030, and the bold Net Zero plans announced by the United Arab Emirates (UAE) and the Kingdom of Saudi Arabia (KSA).

BESS Success at Scale

It is estimated that the Middle East is set to receive over $75 billion3 in renewable energy project investment by 2030, spanning 116 renewable energy initiatives. Large-scale BESS deployments backed by robust risk management strategies transform intermittent renewable energy into reliable, dispatchable power that industries can depend on.

Having the right risk strategy in place is about far more than just protective precautions in the BESS context – when designed correctly, they enable large-scale projects to succeed.

Stay tuned for the upcoming articles in this new series, in which we will explore topics like emerging BESS opportunities, adapting safety standards, infrastructure challenges, and ensuring project bankability through robust risk management.

 

 

1 https://www.certrec.com/news/record-breaking-annual-growth-in-renewable-power-capacity/?

2 https://www.energetica-india.net/news/mena-region-to-triple-renewable-capacity-by-2030-boosting-solar-wind-and-hydrogen

3 https://www.renewableinstitute.org/75-6-billion-surge-in-renewable-energy-investments/#:~:text=The%20Middle%20East%20is%20on,increase%20in%20renewable%20energy%20projects.

Our people

Erin Todd

Erin Todd

Power & Renewable Energy Leader, IMEA Marsh Specialty | Energy & Power

  • United Arab Emirates

Edward George

Edward George

Power & Renewable Energy Client Executive, IMEA Marsh Specialty | Energy & Power

  • United Arab Emirates