Next-gen renewables: Risk, resilience and insurance readiness
From boomers, to Gen X, to millennials, to Gen Z, the new evolution is upon us: Gen R, the next phase of renewables. In this Renewable Energy Market Review, the theme is clear. Despite calls to double-down on carbon-based technologies in some regions, clean energy technologies are evolving at pace. The sector is pushing the needle on innovation at scale and momentum is growing for hybrid, complex and integrated technology projects.
57% of renewable energy companies in our Global Clean Energy Survey listed risk engineering requirements as a top five obstacle to transferring clean energy risks to the insurance market[1]. Lack of suitable insurance products (51%) and blanket or excessive exclusions (49%) followed in the second- and third- highest obstacles.
Softening market conditions are creating white space for innovation. Insurers are focusing on differentiating themselves in a competitive market by investing in new solutions to address clients’ challenges. From performance insurance, to liquidated damage cover and beyond, renewable energy companies have opportunities to use risk and insurance strategically to facilitate debt, investment and bankability for clean energy projects.
Data and analytical models – such as Connected Risk Intelligence[2] – can help companies balance risk retention and transfer to protect assets in the short-term, while building a sustainable business model for the long-term.
When transferring risks to the insurance market, elements of a cleaner energy project may appear unique or prototypical to insurers, but in fact are normal proven technologies in the given industry sector. Risk engineers can assist and clarify this technology view, demystifying degree of prototypical elements and projects and bridging the gap across industry sectors to clarify the real difference between proven and prototypical technology.
Providing insurance markets with these data-driven insights will be critical to enable underwriters to fully understand the project and the risks associated with both known and unknown technologies. Backed by data, the collaboration between renewable energy companies, risk advisors, brokers and markets can help to establish the optimal balance of cost and coverage.
As trade tensions, tariffs and tax challenges evolve, renewable energy companies stand at a tipping point. While global pressures endure, the next wave of innovation continues to push the sector forward into new and uncharted waters. Different regions each face intrinsic risks and opportunities, but the renewable energy sector, connected across a global network, can step into the future with clarity and confidence, backed by risk and insurance.
At Willis, a WTW business, we will continue to keep our finger on the pulse of changing trends, and work with clients and insurance partners to continue innovating through the complexities and challenges of the clean energy transition.
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In this 2025 Renewable Energy Market Review, we explore how, around the world, major pressures are changing the risks and opportunities for renewable energy companies in the year ahead.
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In this 2025 Renewable Energy Market Review article, we examine how the insurance market will need to evolve in parallel with technological innovation to enable safe experimentation and scalable deployment.
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The renewable energy sector largely operates in a linear economy, with a take-make-dispose model. But the supply of resources is finite, and if left unchanged, will enter a state of resource depletion.
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In this article from our 2025 Renewable Energy Market Review, we explore four key steps renewable and clean energy companies can take to build a robust and resilient risk management strategy.
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In this 2025 Renewable Energy Market Review article, we examine how bringing tax expertise in house and investing in tax insurance can help build resilience amid geopolitical uncertainty.
