Jan. 22 (Bloomberg) — The rising share of renewables in
the global power mix may spur insurable losses of as much as
$41.7 billion a year by 2030, according to Swiss Re Ltd.
As new energy projects become bigger and more complex
driven by demand from nations with climate goals, the risk of
losses caused by disasters and adverse weather increases,
according to a report by the world’s second biggest reinsurer.
The insurance industry is betting on gains from growth in
renewables pursued by nations from China to Germany as they seek
to limit emissions. Insurer Munich Re last month signed the
first deal to insure offshore wind turbines at a German farm
while Swiss Re, based in Zurich, covers risks including weather
exposure and electricity price volatility at renewable plants.
Clean power and other emissions-cutting projects could push
potential annual losses in the energy industry to $41.7 billion
a year by 2030, the report found. That’s under the “greenest”
of six scenarios it outlines for the future energy mix with the
largest proportion of clean technologies spurred by the most
policy support.
“Risks associated with new energy technologies are
expected to drive future losses. But these risks are small
relative to total investments,” Swiss Re said. Total investment
in biofuels, wind and carbon capture and storage projects could
reach as much as $3.1 trillion by 2030, according to Swiss Re.
“This makes a strong case for investments in renewable
energy sources,” the reinsurer said.
To contact the reporter on this story:
Sally Bakewell in London at
sbakewell1@bloomberg.net
To contact the editor responsible for this story:
