MELBOURNE, July 9, 2025 — Although carbon-based clean technologies are expected to see only marginal growth, renewable and clean energy technologies are projected to grow exponentially to meet rising global demand. Looking ahead, despite ongoing global pressures and with softening market conditions, optimism is anticipated to persist according to the Renewable Energy Market Review 2025 published today by Willis, (NASDAQ: WTW), a WTW business.
The review, titled Next-gen renewables: Risk resilience and insurance readiness, includes commentary on emerging market dynamics across key regions. It highlights the next wave of renewable energy innovations and outlines strategies to navigate growing global uncertainty. Together, these insights deliver a comprehensive analysis of the risks and opportunities shaping the sector in 2025.
Several key trends are explored in this years’ review:
“Different regions face intrinsic risks and opportunities, but the renewable energy sector as a whole can step into the future to deliver clarity and confidence.”
Steven Munday | Global Renewable Energy Leader,
Willis Natural Resources
Steve Munday, Global Renewable Energy Leader, Willis Natural Resources, said: “While global pressures endure, the next wave of innovation continues to push the sector forward into new and unchartered waters, low carbon power generation doesn’t stop with wind and solar. Different regions face intrinsic risks and opportunities, but the renewable energy sector as a whole can step into the future to deliver clarity and confidence.”
“Australia continues to be the top of the leaderboard for renewable energy investment. Global property insurance availability and affordability will hinge on project-level risk quality. Stakeholders in the industry should engage their insurance brokers and risk advisors early, invest in risk mitigation and embrace data-driven risk transparency to navigate a more technical and disciplined insurance landscape,” said John Rae, Renewable Energy Leader, Willis Natural Resources, Pacific.
The renewable energy sector in Australia continues to grow rapidly, with 7.5 gigawatts (GW) of renewable energy capacity being added, including 4.3GW from large-scale power stations and 3.2GW from small-scale rooftop solar installations. However, the insurance market for these assets is under pressure due to mounting claims, extreme weather events and ever evolving technology risks.
John added, “Despite hardening of the renewable insurance market in prior years, capacity has improved due to increase coverage appetite from global markets. However, the Australian property insurance market remains cautiously optimistic. While capacity is available for well-manged and technically-sound assets, insurers are increasingly becoming selective on their coverage, particularly for older solar farms, wind assets in bushfire or cyclone-prone areas and Battery Energy Storage Systems (BESS) facilities with limited thermal controls or inadequate spacing.”
Natural catastrophe exposures also continue to remain as an outlier where (re)insurers’ appetite is flat or declining. Risk modelling, particularly around flood, hail and bushfire, and mitigation strategies are now minimum requirements. There will also be increased scrutiny of site selection, along with civil works design to assess flood resilience. Insurers are focusing on their particular accumulations in any one area or region and are more selective in deploying capacity for renewable energy projects.
The complete report can be downloaded here: Renewable Energy Market Review 2025.
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