The impact of geopolitics, inflation and the energy transition on the industry.
At the time of the release of last year’s review, not many of us could have foreseen the impact that the conflict in Ukraine would have, not only on the renewable energy sector but on the global economy as a whole.
What exactly has changed since last year?
Firstly, geopolitical events and strategic competition between global powers continue to intensify. Ongoing sanctions and realignment of trade will have lasting disruption to the global economy, regardless of the outcome of the current crisis in Ukraine or the recent protests that we have seen in China.
Two years after the COVID-19 pandemic, global inflation has approached 10%, becoming a major concern for the global economy. With demand outstripping supply for many commodities, the need to provide energy and power is driving inflation, both directly and indirectly. The Global Supply Chain Pressure Index reached its highest level ever in 2022, according to the US Federal Reserve, resulting from multiple shocks from global geopolitical events, pandemics and natural disasters. Cybersecurity is developing into a major risk for corporations across their operations with potential for substantial financial cost and reputational damage. Lastly, understanding physical risk exposure from climate risk is becoming increasingly important.
This year’s review focuses on the impact of geopolitics, inflation and the energy transition on the industry. Margaret Ann Splawn, from the Climate Markets & Investment Association, provides her own reflections as a delegate at the recent COP27 and points the way for the renewable energy industry to work towards a more sustainable future.
The review includes commentary in areas such as the geopolitical arena, solar PV, hydrogen and floating offshore wind, as well as a detailed analysis of the insurance markets for Renewable Energy. Lastly we take a global tour to review contributions from our colleagues around the world.
