Countries such as China, India, Japan, South Korea and in ASEAN are accelerating the deployment of solar, wind, hydro and emerging technologies, including hybrid installations that integrate batter energy storage systems (BESS) and floating solar photovoltaics (FPV)
Singapore: Although carbon-based clean technologies are expected to see only marginal growth, renewable and clean energy technologies are projected to grow exponentially to meet rising global demand.
Looking ahead, despite ongoing global pressures and with softening market conditions, optimism is anticipated to persist according to the Renewable Energy Market Review 2025, titled Next-gen renewables: Risk resilience and insurance readiness, published by Willis, a WTW business.
Several key trends are explored in this years’ review:
-Softening market conditions persist: an oversupply of capacity is intensifying competition among insurers, continuing to drive pricing downward.
-Natural catastrophe losses remain a major concern: severe weather events are directly damaging assets and causing significant challenges.
-Risk and insurance solutions evolve: innovation in peril diagnostics and broad parametric solutions is helping the market better manage volatility and uncertainty.
-Renewable innovation gains momentum: emerging technologies such as kinetic infrastructure, solar-integrated materials, nuclear fusion and gravity-based storage demonstrate the continued interest in reshaping the future energy landscape.
Steven Munday, Global Renewable Energy Leader, Willis Natural Resources said: “While global pressures endure, the next wave of innovation continues to push the sector forward into new and unchartered waters, low carbon power generation doesn’t stop with wind and solar. Different regions face intrinsic risks and opportunities, but the renewable energy sector as a whole can step into the future to deliver clarity and confidence.”
According to the International Renewable Energy Agency (IRENA), Asia was the primary driver of the 140% global growth of renewable capacity over the past decade, contributing 421.5GW of new capacity. This is 72% of the global total and bringing its cumulative capacity to 2,382 GW or 53.6% of the global share.
The region continues to lead global renewable energy growth, fuelled by rising energy demand, ambitious net zero targets and the increasing cost-competitiveness of clean technologies.
Countries such as China, India, Japan, South Korea and in ASEAN are accelerating the deployment of solar, wind, hydro and emerging technologies, including hybrid installations that integrate batter energy storage systems (BESS) and floating solar photovoltaics (FPV).
Looking ahead, floating solar is expected to play an increasingly important role in expanding Asia’s renewable capacity. With technological innovation, supportive policy frameworks and competing challenges for land use, optimisation of FPV systems is gaining significant traction.
In particular, ASEAN markets are seeing heightened interest, with developers actively participating and government tenders, indicating strong growth potential.
Sam Liu, Head of Renewable Energy, Willis Natural Resources, Asia said: “FPV projects face technical challenges, especially regarding floater design and the resiliency of anchoring and mooring systems, particularly in sites exposed to natural catastrophes. Site selection is therefore critical, as it directly impacts the overall system design. Extensive technical studies are therefore required to gather accurate environmental data and ensure the project is engineered for long-term performance and durability.
“In general, while new market entrants have increased overall capacity and enhance competitiveness in the insurance sector, insurers remain highly technical and cautious. This is particularly when underwriting emerging technologies such as BESS, hydrogen, FPV and larger wind turbine models. Capacity remains constrained by factors such as natural catastrophe exposures and the accumulation of insured assets within specific regions. These will continue to influence underwriting appetite and terms for renewable energy companies in Asia.”
The review, includes commentary on emerging market dynamics across key regions. It highlights the next wave of renewable energy innovations and outlines strategies to navigate growing global uncertainty. Together, these insights deliver a comprehensive analysis of the risks and opportunities shaping the sector in 2025.