Kathmandu. As Asia prepares to add 513.3 GW and achieve 74.2% of new global renewable energy capacity by 2025, the insurance industry is shifting from standard paper requirements to critical strategic tools to securing project funding.
According to insurance broker WTW’s renewable energy market review, the rapid growth of solar, wind, hydropower, battery storage and floating solar projects across Asia has made risk management more difficult. However, the Asian insurance market remains generally competitive and the level of coverage for large, well-managed utility projects has stabilized. Insurance companies are becoming more selective about what they cover.
Insurance companies are closely monitoring major grant changes that challenge climate fluctuations, supply chain disruptions and project timelines. China’s decision to lift export tax exemptions for solar products in April 2026 and then battery products is expected to drive up global prices for these components by 2027.
These rising costs and potential shipping delays for projects in the Asia Pacific region put developers at greater financial risk if their projects are delayed. That’s why insurance underwriters are increasingly focusing on whether the indemnity period is enough to cover start-up delays coverage and long-term disruptions.
Local Asian insurers are taking on more of these risks, but developers still rely heavily on the international reinsurance market to support large, highly complex or disaster-prone projects.
According to Sam Liu, WTW’s head of renewable energy in Asia, project developers and lenders should include insurance in their plans from day one. “The projects that will receive the best insurance terms in 2026 will be those that demonstrate transparent data, robust technical design, realistic delay plans, and clear synergies between their procurement agreements and risk management strategies,” he said. —Agency
