Renewable Energy Market Review 2025
Major renewable energy epicentres are facing changing risks and insurance market conditions. In this article, our specialists examine the key renewable energy insurance market trends that are evolving in these regions.
Sam Liu, Regional Renewable Energy Leader, Asia, Willis Natural Resources
Asia was the primary driver of the 140% global growth of renewable capacity over the past decade, contributing 421.5 GW of new capacity — 72% of the global total — and bringing its cumulative capacity to 2,382 GW, or 53.6% of the global share[1].
In general, while new market entrants have increased overall capacity and enhanced competitiveness in the insurance sector, insurers remain highly technical and cautious — particularly when underwriting emerging technologies such as Battery Energy Storage Systems (BESS), hydrogen, floating photovoltaics (FPV), and larger wind turbine models. Capacity remains constrained by factors such as natural catastrophe exposures and the accumulation of insured assets within specific regions, which continue to influence underwriting appetite and terms.
Ray Zhang, Power and New Energy, Power and Infrastructure, Willis Natural Resources, China
According to the report of Global Wind Energy Council (GWEC), by the end of 2024, the total offshore wind power installed capacity grid-connected in China accounted for 51.3% of the global market share[2]. To adapt to deep and far locations, floating-type and large-scale turbines are a growing trend.
For deep water offshore wind projects, there is sufficient insurance capacity from local domestic markets, but if floating wind turbines are widely deployed, the Chinese domestic market would lack capacity. When floating turbine projects are scaled up, Chinese domestic insurers will be looking for strong facultative reinsurance support or specified treaty reinsurance.
John Rae, Regional Renewable Energy Leader, Willis Natural Resources, Pacific
Australia’s renewable energy sector 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[3]. However, the insurance market for these assets is under pressure due to mounting claims, extreme weather events and ever evolving technology risks.
The Australian property insurance market remains cautiously optimistic. While capacity is available for well-managed and technically-sound assets, insurers are increasingly selective, particularly for:
Despite hardening in prior years, capacity has improved due to increased appetite from global markets. Projects demonstrating strong design, maintenance, and resilience will benefit from more favourable terms.
Sergio Toro, Regional Power and Utilities Leader, Willis Natural Resources, Latin America
Over the past decade, renewable energy in Latin America has made remarkable progress, driven by the region’s abundant natural resources and growing interest from both domestic and international investors.
Key focus areas include solar and wind energy, green hydrogen, carbon capture and BESS.
However, these technologies bring with them emerging risks such as supply chain disruptions, geopolitical tensions, climate variability, regulatory uncertainties, construction delays and overruns, cybersecurity threats, physical and transition climate risks, and grid limitations. The Latin American markets (especially centred in Miami) are becoming increasingly supportive of renewable energy risks, frequently leading or sitting on same term slips with wider international carriers.
The hardening of the domestic and regional markets over the last few years, when considered in the context of falling international rates, is providing greater parity in terms and conditions than we have seen for many years.
Alex Forand, Head of Power and Utility Broking, Willis Natural Resources, North America
In North America, the Electric Reliability Council of Texas (ERCOT) and the PJM Interconnection are experiencing unprecedented growth in electricity demand, primarily due to data center expansion[4]. This expansion will put tremendous pressure on infrastructure, including new and existing assets. Approximately $15 billion dollars in transmission investments are required to meet new demand by 2030[5]. This expansion will be met with regulatory and permitting hurdles, which pose challenges in both power generation and infrastructure upgrades to meet forecasted demands.
Property insurance trends continue to see relief in the early stages of 2025, with renewal rates trending towards double-digit savings while new projects are seeing a five-year low in rates[6]. Due to the strong growth of data center developers, new insurance capacity is introduced to the market every quarter.
Casualty rates continue to climb in the renewable energy sector due to higher-than-expected nuclear verdicts driving social inflation and continued pressures from climate change. Independent power producers are slightly insulated from the broader casualty market, with rates remaining flat year over year. Any exposure to wildfire, heavy auto fleets, or residential exposures continues to see rate pressures into 2025.
Fadi Abdul Aziz, Head of Energy Broking, Willis Natural Resources, CEEMEA
As traditional energy operators continue to diversify into renewable energy projects in the region, CEEMEA remains a popular destination for insurance capital deployment.
The region features large and complex risks that invite attractive premium levels and historically carry less risk from an asset age and natural catastrophe perspectives compared to other regions. Following a period of loss activity, however, underwriters are applying more scrutiny in their reviews, especially for technologies that have proven to be challenging to erect or operate.
Regional carriers’ broad scope is segmented into maximum capacity allocation for each individual renewable segment which present unique challenges but more importantly opportunities to diversify the risk profile of the portfolio. The market appetite is growing steadily, with existing players increasing their appetite and new players entering the market through Mergers and Acquisitions (M&A) or establishment of regional branches.
Henrik Brune, Head of Renewable Energy, Willis Natural Resources, Nordics
The insurance landscape in the Nordic region is undergoing major developments. A Norwegian marine insurer giant has completed an acquisition of a key insurer in the global renewable energy market[7], and the addition of a conservative marine- and offshore-focused insurer to onshore business is an indication that the renewable energy market is shifting drastically. Other Protection and Indemnity (P&I) clubs will be assessing their business model and treaties to decide if they can compete across exposures.
Meanwhile, some major Nordic-based Property and Casualty (P&C) insurers are de-risking their portfolios, including their renewable energy books. Capacity is opening up for other markets and we are seeing more co-insurance policies and smaller line-sizes, which is giving access and capacity to additional markets, and inviting new carriers to enter or expand in the Nordics. This is healthy for the region and for handling larger claims.
Looking ahead, the outlook is increasingly positive, especially in offshore wind, where strong industry engagement is driving renewed optimism across the Nordic market.
Download the full article to find out how major themes are impacting renewable energy companies in the year ahead.
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