The 2025 Renewable Energy Market Review by Willis explores how major pressures are changing the risks and opportunities for renewable energy companies in the year ahead. Major renewable energy epicentres are facing changing risks and insurance market conditions.
Willis Natural Resources Regional Renewable Energy Leader Asia Sam Liu said, “Asia was the primary driver of the 140% global growth of renewable capacity over the past decade, contributing 421.5GW of new capacity — 72% of the global total — and bringing its cumulative capacity to 2,382GW or 53.6% of the global share.
He said, “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.
Willis Natural Resources Power and New Energy, Power and Infrastructure China Ray Zhang said, “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. 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.”
Speaking about Australia Willis Natural Resources regional renewable energy leader Pacific John Rae said, “Australia’s renewable energy sector continues to grow rapidly, with 7.5gigawatts (GW) of renewable energy capacity being added, including 4.3GW from large-scale power stations and 3.2GW from small-scale rooftop solar installations.
He said, “However, the insurance market for these assets is under pressure due to mounting claims, extreme weather events and ever evolving technology risks.
Mr Rae said, “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 Nat CAT exposures – appetite is flat or declining.
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.