Market Trends of Renewable Energy Insurance Industry
Rising Investments are Expected to Boost the Renewable Energy Insurance Market
The surge in clean energy investments has been driven by several factors, including improved economic conditions at a time when fossil fuel prices are high and unpredictable, improved policy support through tools such as the US Inflation Reduction Act, new policies in Europe, Japan, and China, and other countries’ strong alignment of climate change and energy security objectives, particularly in import-reliant economies. These economies focus on industrial strategy as countries look to strengthen their positions in the fast-growing clean energy market.
The mining, oil, and gas industry is on track to invest more in renewable energy technologies as it seeks to diversify its portfolio and reduce its carbon footprint. Strong demand and attractive long-term incentives are driving global trends in renewable investment. For example, the EU has been implementing an integrated hydrogen strategy to promote the use of renewable and low carbon hydrogen as a form of energy. Other emerging markets, such as Colombia, have introduced new laws to boost incentives for solar and wind power.
Rising Renewable Energy Projects in Asia-Pacific Expected to Boost the Market
In the upcoming decade, approximately half of the total investment in power generation across Asia-Pacific is projected to be allocated to renewable energy sources, including energy storage. Significant investments are being made in the development of large offshore wind farms in South Korea, Japan, and Vietnam, mirroring the initiatives previously seen in Taiwan. IHI Corp. is set to install a sea turbine in the Kōchi prefecture near Japan as part of the increasing trend of solar and onshore wind projects in the area.
Asia-Pacific is growing at a faster rate than any other region in the world, with a significant share of global energy emissions projected to come from the region in the next six years. Green investments have been concentrated on solar, offshore wind, and hydroelectric power. The region is also a global leader in lithium-ion battery production, with China accounting for a leading market share. China’s large population and high electricity demand will drive the development of renewable energy sources. Many global companies, including Chinese companies, are investing in renewable energy with the support of China’s federal and provincial governments.
