The renewable energy sector is showing remarkable resilience despite prevailing conditions, as climate issues, supply chain disruption, casualty deterioration, social inflation and geopolitical conflicts together create a complex landscape for the class.

Overall profitability remains difficult due to variable results within energy classes according to the Renewable Energy Market Review 2024, published today by WTW.

Unpredictable weather patterns continue to challenge the renewable market, according to the report, with significant natural catastrophe losses and an unprecedented number of individual weather events exceeding US$1bn. And, four years post-Covid-19 pandemic, global supply chains still remain unstable, influencing lead times for critical items and assessments of asset reinstatement and business interruption risk.

Separately, the renewable energy sector is seeing rapid growth in large wind turbines, floating solar installations, green hydrogen, and utility-scale battery energy storage systems, prompting markets to innovate and adapt their strategies, WTW says. Lithium-ion batteries and green hydrogen are ushering in a new era of energy storage, driving a renaissance in well-known technologies such as hydroelectric pumped storage.

WTW’s report also flags a major challenge in resourcing the skills necessary to support the transition to low-carbon infrastructure

Steven Munday, natural resources global renewable energy leader at WTW, commented: “Recent challenges have tested the insurance markets, but resilience has improved. While surplus capacity exists for proven technologies, caution remains. The ongoing competition and potential for a La Niña year keep rates steady, with parametric solutions gaining traction despite integration challenges.

"To capitalise on emerging opportunities, renewable energy risk and insurance buyers should continue to engage with advisors and markets, employing smarter solutions to navigate the complexities of the evolving landscape.”

---