The renewable sector has demonstrated strong resilience this year, despite ongoing climate- and social-related impacts. A report published by global advisory firm WTW highlighted profitability as one of the biggest ongoing challenges for the sector, due to variable results within energy classes. In addition, it noted that climate volatility caused by El Niño and La Niña had also challenged the renewables market – with significant natural catastrophe losses and individual weather events exceeding US$1 billion in damages. Ongoing global supply chain instability following the Covid-19 pandemic also impacted lead times for critical items. The renewable energy insurance market currently faces a resource skills gap, WTW said, as it looks to transfer skills from traditional energy sectors to low-carbon infrastructure. Demand for renewables is nonetheless still growing, WTW noted. “Countries in Asia are increasingly embracing renewable energy [and] we anticipate a continued surge in investments in 2024, particularly within the South-East Asia region, with countries setting ambitious targets to meet their net-zero emission goals,” said Sam Lui, WTW’s Asia Head of Renewable Energy. The region will likely witness an increase in cross-border projects to import and export electricity – but challenges remain, such as cross-border regulations and complex transmission facilities including for subsea cables and financing, Liu explained.
