LONDON, June 30, 2021 – Power companies are facing key challenges arising from the energy transition and the move to cleaner fossil fuels, according to Willis Towers Watson’s (NASDAQ: WLTW) 2021 Power Market Review. These include how power companies need to substantially reduce their greenhouse gas (GHG), emissions (referred to as climate change mitigation) as well as ensuring the resilience of their assets and operations to the impacts of climate change (referred to as climate change adaptation).
In these uncertain times, adapting to the new realities of the energy transition and the move to cleaner fossil fuels is critical for a sustainable future for the power sector.”Graham Knight
Head of Global Natural Resources, Willis Towers Watson
The review highlights how the industry is embracing the need to meet climate change requirements but also looks at how climate change is presenting unique risks to the sector that must be managed effectively to maintain reliable supply. The review also explores how geopolitical power from energy transition will derive from:
Other key highlights of the review from an insurance market perspective include:
Graham Knight, Head of Global Natural Resources, Willis Towers Watson, said: “In these uncertain times, adapting to the new realities of the energy transition and the move to cleaner fossil fuels is critical for a sustainable future for the power sector. However, it is not a simple matter of an immediate and irreversible switch to renewable energy. It is essential that there remains room for the power sector to adapt and absorb new technologies such as hydrogen and biofuels, rather than face a wholesale abandonment by stakeholders for renewable sources of power such as Wind and Solar.”
He added: “Recent initiatives such as the Climate Transition Pathway accreditation process and the movement from coal to hydrogen are all helping the power sector and its insurance partners adjust to a move to cleaner and more sustainable environment. But it is imperative that buyers and their brokers deliver clarity, transparency, and a renewed engagement with their leading insurers. Only then will they minimise the impact of this challenging market.”
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