Group 8
2021-07-27

Renewable Energy Insurance White Paper

Increased demand for renewable energy insurance in the face of climate change

The demand for renewable energy insurance has risen as the industry expands in the wake of climate change. According to the IEA, the share of renewables in global electricity generation increased to over 28% in Q1 2020, up from 26% in Q1 2019. Although coal and gas still account for about 60% of worldwide electricity generation, a significant growth in renewables has occurred in recent years. Preliminary estimates from EEA show that the EU’s renewable energy consumption accounts for 21.3% of total energy consumption in 2020. The increased use of renewables for energy, heating, and cooling is largely responsible for the overall positive trend. 

In parallel, as climate change accelerates, climate-related disasters are becoming more frequent and intense. 389 climate-related disasters were registered in 2020 alone, especially with a major rise in floods and storms, resulting in economic losses of at least $171.3 billion

For renewable energy producers, climate change significantly threatens production and the industry at large.Unlike other industries, the renewable energy sector is particularly vulnerable to climate risks and is therefore complicated to cover by traditional insurers. A lack of historical claims data makes it specifically hard to insure and protect. 

Descartes’ parametric insurance helps the renewables sector build resilience against climate risks

Descartes’ parametric renewable energy insurance offers completely bespoke and transparent cover for each client. Built on objective data and real-time monitoring via IoT, radar, and satellite imagery, it provides a way to assure liquidity following a qualifying weather event through a quick, direct payout. With more affordable premium rates than traditional insurance, Descartes constructs a policy within clients’ budgets. 

Fill out the form to download our latest white paper and learn more about how our parametric insurance can protect the renewable energy sector.

Increased demand for renewable energy insurance in the face of climate change

The demand for renewable energy insurance has risen as the industry expands in the wake of climate change. According to the IEA, the share of renewables in global electricity generation increased to over 28% in Q1 2020, up from 26% in Q1 2019. Although coal and gas still account for about 60% of worldwide electricity generation, a significant growth in renewables has occurred in recent years. Preliminary estimates from EEA show that the EU’s renewable energy consumption accounts for 21.3% of total energy consumption in 2020. The increased use of renewables for energy, heating, and cooling is largely responsible for the overall positive trend. 

In parallel, as climate change accelerates, climate-related disasters are becoming more frequent and intense. 389 climate-related disasters were registered in 2020 alone, especially with a major rise in floods and storms, resulting in economic losses of at least $171.3 billion

For renewable energy producers, climate change significantly threatens production and the industry at large.Unlike other industries, the renewable energy sector is particularly vulnerable to climate risks and is therefore complicated to cover by traditional insurers. A lack of historical claims data makes it specifically hard to insure and protect. 

Descartes’ parametric insurance helps the renewables sector build resilience against climate risks

Descartes’ parametric renewable energy insurance offers completely bespoke and transparent cover for each client. Built on objective data and real-time monitoring via IoT, radar, and satellite imagery, it provides a way to assure liquidity following a qualifying weather event through a quick, direct payout. With more affordable premium rates than traditional insurance, Descartes constructs a policy within clients’ budgets. 

Fill out the form to download our latest white paper and learn more about how our parametric insurance can protect the renewable energy sector.