A report by WTW has highlighted the need for effective risk management in the renewable energy sector to sustain the current trend of capital investment in domestic power plants.
The report titled ‘Renewable Energy Market Review 2023’ notes that inflation, supply chain issues, and costing-related challenges are affecting the industry’s outlook.
However, Asia’s renewable energy sector remains promising, with a significant capital injection expected in the coming years.
The report specifically highlights the influx of capital investment in India’s renewable energy sector. It also notes that floating solar is gaining popularity and will play an important role in the energy transition of countries like China, India, and South Korea.
The report concludes that risk managers and intermediaries play a critical role in managing the risks associated with the renewable energy sector’s growth to its full potential.
Contributing author Margaret-Ann Splawn, Executive Director of the Climate Markets & Investment Association, said, Macro events and trends such as inflation, cost increases, security, and supply chains are impacting the renewable energy industry, making the current business environment a challenging one for risk managers, reports PTI.