The accelerating growth of the renewable energy sector continues as companies are looking to transition to a low carbon environment. The speed of growth is also creating significant demand for building resilience against climate change, according to WTW, a leading global advisory, broking, and solutions company, at the launch of its annual Renewable Energy Market Review.
The report also outlines how the renewables insurance market is stabilizing with low to mid single-digit price increases expected in 2022. Some of the key challenges besetting the renewables insurance market include aged assets, operation & maintenance and spares, natural catastrophe risk, contractor experience, lender obligations, the pace of technological change and COVID-19 related supply chain interruption risks.
Graham Knight, Head of Global Natural Resources, WTW, said: “The renewable energy industry is transforming at a speed which can be difficult to track. This can be seen in the record growth in solar PV and wind capacity additions - beating the previous year’s record - as well as the increasing interest from insurers in offshore wind and hydrogen, where synergies in environment and technology strategies are available. This creates an incredibly complex and fast evolving environment for the sector, so it is essential that organisations understand how to manage not only the speed of growth but also the emerging risks that arise, such as supply chain issues. At WTW, we are helping renewable energy companies navigate this complex risk terrain by providing innovative solutions which can help mitigate risk in this fast-growing sector.”