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Industry

Power and utilities

Future-ready power and utilities companies are harnessing sophisticated risk and insurance solutions to drive growth and profitability in a clean energy future.

Power and utilities companies are at the core of the clean energy transition. But as the natural resources industry changes, financial and operating models are under pressure.

Key priorities for power and utilities companies

over the next 10 years, the top three priorities for power and utilities companies are set to change as the clean energy transition gathers pace.

In our 2025 Global Clean Energy Survey, power and utilities organizations revealed how their priorities shift over the immediate-, mid- and long-term:[1]

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Lyo Foo

Head of Power, Natural Resources, Asia

  • Immediate priorities

    1. Investment in new technologies (80%) and raising capital (80%)
    2. Research and development/innovation (68%)
    3. Working with trade bodies and government departments (66%)
    1. Investment in new technologies (80%) and raising capital (80%)
    2. Research and development/innovation (68%)
    3. Working with trade bodies and government departments (66%)
  • Priorities for the next five years

    1. Divesting operations or business segments (51%)
    2. M&A to acquire new capabilities or technologies (49%)
    3. Major changes to existing assets ($250 million or more) (43%)
    1. Divesting operations or business segments (51%)
    2. M&A to acquire new capabilities or technologies (49%)
    3. Major changes to existing assets ($250 million or more) (43%)
  • Priorities for the next 10 years

    1. Major changes to existing assets ($250 million or more) (34%)
    2. Forming joint ventures and partnerships (21%)
    3. Divesting operations or business segments (17%)
    1. Major changes to existing assets ($250 million or more) (34%)
    2. Forming joint ventures and partnerships (21%)
    3. Divesting operations or business segments (17%)

Top risks facing power and utilities companies

But with change, comes risk. Power and utility companies face major challenges including:

  • Volatility in financial markets
  • Uncertainty of return on investment
  • Legal and liability exposures
  • The cost of new technologies
  • Changing regulation
  • Sociocultural expectations
  • Stakeholder pressures
  • Access to capital

In a changing and complex industry, power and utilities companies listed supply chain and geopolitical risk as the top two risks to achieving their clean energy strategy in our Global Clean Energy Survey 2025.[2]

#1 RiskSupply chain disruption

#2 RiskGeopolitical risk

Forward-thinking leaders in the power sector are finding strength in specialty.

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Power Market Review 2025

A smarter approach to power and utilities risk management

Insurance is a critical tool in power risk managers’ toolkits. Combining traditional lines with new and innovative risk solutions can help power and utilities companies build a robust risk management strategy. But ensuring risk strategies evolve is key to long-term success.

FEATURED REPORT

Global Clean Energy Survey 2025 Report

Find out about the pressures and priorities shared by 450 natural resources companies implementing their clean energy transition strategies.