The Bloomberg New Energy Finance news, information, and analysis services (the "Services") are owned and distributed locally by Bloomberg Finance L.P. ("BFLP") and its subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India, Japan and Korea (the "BLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg L.P. ("BLP"). BLP provides BFLP with all global marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP subsidiary in the BLP Countries.
Swiss Re Sees $41.7 Billion Energy Losses Boosted by Renewables
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 firstname.lastname@example.org
To contact the editor responsible for this story: