Unlimited supply, cleaner air and a reduced risk of climate change. The benefits of switching to renewable energy are hard to argue with. It's also a booming business area that RSA is actively helping to grow.
GB Green Week is a good time to remember just how important a role energy plays in our lives. Powering critical infrastructure, our workplaces, the homes we live in and the screen you're using to read this article, we simply can't do without it.
However, traditional sources of electricity generation like power plants that run on coal and gas are major contributors to carbon emissions released into the earth's atmosphere that cause global warming and result in climate change.
In 2015, many of the world's governments - including the UK's - committed to limiting future carbon emissions under the Paris Agreement in a move to keep the rise in the earth's temperature to less than 1.5oC. This is necessary to minimise the impacts associated with climate change such as increased likelihood and severity of floods, droughts and storms, brought to the world's attention in the latest IPCC (Intergovernmental Panel on Climate Change) special report.
Meeting these targets requires a step-change in how we generate energy and invest in the low-carbon economy, for example, by promoting renewable energy sources and energy efficient measures.
DID YOU KNOW? Between 2016 and 2040, the capacity of the worldwide renewable energy market is predicted to grow by 390%!
RSA is supporting this energy transition by helping providers of renewable energy access the insurance they need. In 1991, we insured the world’s first offshore wind farm in Denmark through Codan. Today, we insure wind, solar, hydro and bioenergy projects and businesses around the world, including the first floating wind farm in Japan in 2013, the 315MW Hornsdale wind farm in Australia and the 64MW La Jacinta Solar Farm in Uruguay.
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As well as working with global renewable energy manufactures like Vestas and Siemens Gamesa, utilities companies and major investors like Macquarie, RSA also supports businesses to achieve their own carbon reduction targets by providing insurance for their renewable portfolios.
It's hard to keep up with the pace of changing technology, and the renewable energy sector is no exception. In just two to three years, wind turbines have increased in capacity by 20%. Turbines capable of powering 4,500 homes for a year (10MW) are now in operation.
DID YOU KNOW? Our team in London insures 30GW of renewable energy capacity worldwide. That's enough to power over 80% of homes in the UK - the equivalent of 12,000 turbines or 13 million solar panels!
In the future, we anticipate large-scale battery storage will improve the commercial viability of wind and solar projects by helping to manage variable generation. We're exploring ways to help support growth in this area by providing the specialist protection they need.
As well as being a dynamic commercial market, renewable energy projects are generating positive outcomes for communities, offering a reliable source of power for the first time in some cases. For example, Malawi is rolling out renewable energy schemes which will provide remote communities with access to grid-based electricity. Likewise, community-based renewable energy projects in the Orkney Islands are providing additional funding for schools and local transport.
RSA's renewable energy specialists are spread across our offices in Europe, Canada and the Middle East. This global team of underwriters, risk engineers and claims handlers form a renewable energy ‘centre of excellence’ and offers insurance at every stage of a project life cycle.
For more information, contact: https://www.rsabroker.com/renewable-energy
