Asia-Pacific insurers expand capacity for sound green projects

APAC contributed about 421.5 GW of new renewable capacity over the past 10 years.

Renewable energy insurance markets across Asia-Pacific are undergoing shifts as new technologies emerge, natural catastrophe risks intensify, and project scales grow, according to WTW. 

Despite continued expansion of renewable energy capacity, insurers remain selective, with underwriting conditions reflecting both technical complexity and regional risk profiles.

In Asia, the region contributed 421.5 GW of new renewable capacity over the past decade — 72% of global growth — raising its cumulative total to 2,382 GW, or 53.6% of global capacity.

Whilst new insurers have improved market competitiveness, underwriting remains cautious, particularly for emerging technologies such as battery energy storage systems (BESS), hydrogen, floating photovoltaics (FPV), and larger wind turbine models.

Capacity constraints persist, driven by natural catastrophe exposure and asset accumulation in risk-prone zones.

In China, offshore wind accounted for 51.3% of global grid-connected installed capacity by the end of 2024, according to the Global Wind Energy Council. 

Whilst deep water offshore projects currently attract sufficient domestic insurance support, large-scale deployment of floating wind turbines could outstrip local capacity. 

In such cases, insurers are expected to seek strong facultative or treaty reinsurance arrangements to manage exposure.

Australia’s market continues to grow, adding 7.5 GW of renewable energy capacity, including 4.3 GW from large-scale power stations and 3.2 GW from rooftop solar. 

However, the insurance market remains under pressure from mounting claims and exposure to extreme weather. 

Insurers are increasingly selective, particularly regarding natural catastrophe risks, ageing solar farms with poor maintenance, wind farms in bushfire or cyclone zones, and BESS facilities with inadequate thermal management. 

Still, international capacity has improved for technically sound projects, with favourable terms offered to assets demonstrating strong design and operational resilience.