New research calls for improved cover to support Chinese renewable energy industry
China has the fastest growing renewable energy market in the world, with nearly 30,000 wind turbines currently in use, and the number predicted to grow by 10,000 per year. However, the industry has grown so rapidly that domestic insurers have not been able to keep up with the pace of development and provide specialist insurance products that cover the complex risks involved. A new approach is needed to enable the wind energy industry to play a leading role in supporting the Chinese Government’s targets to reduce CO2 emissions by 45% and generate 15% of energy from renewable sources by 2020.
A new report by RSA and WWF - Wind Energy Insurance in China: Opportunities & Challenges - argues that China’s wind energy industry would benefit from increased collaboration between domestic and international stakeholders to improve the technical capacity of the domestic wind energy insurance market.
“Wind energy has high potential for low carbon development but it’s not risk free. As technology continues to develop and we see bigger wind turbines, experienced insurers are needed to understand, manage and reduce the potential risks,” said Elton Chang, CEO of RSA China. “The technical support of insurers is paramount for the growth of the sector, especially as further growth is expected in offshore wind energy.”
“WWF envisions a future in which 100% of energy will be from renewable sources by 2050. To support this goal, it is important that we use all financial tools that can boost renewable energy. Insurers play a significant role to mitigate risk, reduce financial costs and increase investments in this crucial sector”, said Dr. Li Lin, Deputy Country Representative at WWF China.