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Renewable Energy Market Review 2023

By Robin Somerville | January 19, 2023

The impact of geopolitics, inflation and the energy transition on the industry.
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Climate and Resilience Hub|Climate Risk and Resilience

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.

Featured articles from the Review

  1. 01

    The renewable energy insurance markets in 2023: key drivers and challenges

    In this article we capture some of the key drivers and challenges anticipated within the renewable energy market.

  2. 02

    Risk management & ESG: the key issues for the renewable energy industry

    In this article we look at what renewable energy risk managers need to consider over the next six to twelve months.

  3. 03

    The power of data: using WTW’s Renewable Energy Loss Database

    In this article we discuss the value of claims data in formulating renewable energy risk strategies.

  4. 04

    Navigating the seas of hydrogen risk: key factors to consider

    In this article we set out the key factors you should consider for hydrogen risks.

Disclaimer

WTW offers insurance-related services through its appropriately licensed and authorised companies in each country in which WTW operates. For further authorisation and regulatory details about our WTW legal entities, operating in your country, please refer to our WTW website. It is a regulatory requirement for us to consider our local licensing requirements.

Author

Business Development Director,
Natural Resources

Contact

Alex Forand
U.S. Head of Power and Utility Broking, Natural Resources

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