SINGAPORE, 18 June 2026 – Asia continues to set the pace of the global energy transition, accounting for 74.2 per cent of global new renewable capacity additions in 2025 and increasing installed renewable capacity by 513.3 GW to 2,891 GW, or 56.1 per cent of global renewable capacity[1].
However, the region’s rapid expansion across solar, wind, hydropower, battery energy storage systems (BESS), hybrid installations and floating solar is also increasing risk complexity, according to the Renewable Energy Market Review published by Willis, a WTW business (NASDAQ: WTW).
The report finds that insurance has shifted from a transactional requirement to a strategic enabler of bankability, lender confidence and capital mobilisation in Asia. While the regional insurance market remains broadly competitive, underwriters are becoming more selective as climate volatility, supply chain disruption, subsidy changes and evolving technologies shape project economics and risk transfer strategies.
Key Asia trends to watch:
- Rapid expansion across solar, onshore and offshore wind, hydropower, BESS, hybrid projects and floating solar is creating greater technical and operational complexity.
- Supply chain resilience remains a defining risk, with geopolitical tensions, trade policy intervention, logistics disruption and supplier concentration influencing construction schedules, project economics and insurance outcomes.
- China’s withdrawal of export-linked VAT rebates for solar PV products from April 2026, alongside the phased removal of rebates for battery products through 2026–2027, is creating a higher global price floor for solar and storage components.
- For Asia Pacific projects, subsidy changes are increasing procurement risk, margin pressure and sensitivity to delivery timing, sharpening focus on delay in start-up exposure and adequacy of indemnity periods.
- The Asian renewable energy insurance market remains competitive and capacity has stabilised, especially for well-structured, utility-scale projects backed by proven technologies, experienced sponsors and strong governance.
- Domestic Asian insurers are expanding participation, but international reinsurance remains essential for large-scale, complex or catastrophe-exposed projects.
Sam Liu, Head of Renewable Energy, in Asia, said: “Expansion across solar, onshore and offshore wind, hydropower, rapidly scaling of BESS, hybrid installations and growing floating solar deployments has reinforced Asia’s role in global decarbonisation. As a result, the region’s renewable energy market is scaling at extraordinary pace, but growth alone will not determine which projects succeed.
“As supply chains become more exposed to policy shifts, delivery volatility and climate-related disruption, sponsors and lenders need to treat insurance as part of the project strategy from the outset. The projects that achieve the strongest outcomes in 2026 will be those that can demonstrate transparent data, robust technical design, credible delay assumptions and clear alignment between procurement, contracts and risk transfer.”
[1] Source: International Renewable Energy Agency – Renewable capacity highlights as of 31 March 2026
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