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Currently showing: Sustainable energy > Fossil fuel

05 Aug 13 12:44

According to "Profiling the risks in wind and solar", a recently published study by CorSo Environmental & Commodity Markets and Bloomberg New Energy Finance, the renewable energy sector could triple the annual amount it spends on insurance by 2020 in order to attract new investors. This means an increase from USD 850 million today to anywhere between USD 1.5 billion and 2.8 billion by the end of this decade.

We must pave the energy path for future generations with much less reliance on fossil fuels. Getting the energy mix right depends on creating a sound renewable energy infrastructure, and this requires money. Here's where risk management comes in, as new solar parks and wind farms require enormous investments, and investors are being asked to put their money behind relatively new technologies dependent on variable inputs like wind speed and hours of sunshine. To reassure investors, sound risk management is the answer.

The study covers six leading markets for renewable energy investment and projects in solar and wind: Australia, China, France, Germany, the UK and the US, digging deeper into the relationship between renewable sector risk management and the institutional investors -- a key investor for the industry. Risk solution providers can design a risk management framework for renewable energy projects that allows investors to become comfortable with investing in such projects.

It's exciting to see how fast the renewable energy industry is growing and also to know that the insurance industry will grow and develop alongside it.

What do you think? What would it take for you to invest your money in renewable energy?

Renewable energy risk management and the institutional investor | Swiss Re - Leading Global Reinsurer

Profiling the risks in wind and solar, a joint study by Swiss Re and Bloomberg...

Category: Sustainable energy: Fossil fuel, Solar


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