SINGAPORE, July 30, 2024 — The renewable energy sector has shown resilience and optimism in 2024 despite facing constraints such as climate issues, supply chain disruption, casualty deterioration, social inflation and geopolitical conflicts. However, overall profitability remains challenging due to variable results within energy classes according to the Renewable Energy Market Review 2024, published today by WTW (NASDAQ: WTW), a leading global advisory, broking, and solutions company.
The review, titled Prepare for storms, plan for stability, includes commentary from international experts and specialists in areas such as battery energy storage systems (BESS), offshore wind, floating solar installations and green hydrogen, as well as a detailed analysis of the insurance markets for renewable energy. Together, they provide a comprehensive analysis of the risks and opportunities in 2024.
Several key trends are explored in this years’ review:
“We anticipate a continued surge in renewable energy investments in 2024, particularly within Southeast Asia region with countries setting ambitious targets to meet their net zero emission goals.”
Sam Liu | Head of Renewable Energy Asia, WTW
Sam Liu, Head of Renewable Energy, Asia at WTW, said: “Countries in Asia are increasingly embracing renewable energy. We anticipate a continued surge in investments in 2024, particularly within the Southeast Asia region with countries setting ambitious targets to meet their net zero emission goals.
“We are also seeing increasing cross-border projects being announced to import and export electricity within the region. However, challenges remain for these projects, such as cross-border regulations and complex transmission facilities, including subsea cables and financing. There has also been a shift to develop more hybrid projects to increase reliability, grid stability and optimise resource utilisation. However, this also increases the interfacing risks between the different technologies.
“Nevertheless, insurance market capacity remains stable with new entrants entering the sector. We still expect tightening of insurance capacities and coverages for emerging technologies and natural catastrophe risks which remains to be the key underwriting concerns due to large losses happening globally.
“The ongoing competition and potential for a La Niña year keep rates steady, with parametric solutions gaining traction despite integration challenges. To capitalise on emerging opportunities, renewable energy risk and insurance buyers should continue to engage with risk advisors and insurers, employing smarter solutions to navigate the complexities of the evolving landscape.”
The report can be downloaded here.
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