The global renewable energy industry is on the cusp of a defining era. One expert believes that over the next five to 10 years, the sector will reach a tipping point where renewable generation surpasses fossil fuel output.
This new era, propelled by political support, technological innovation, and growing market acceptance of renewables, is what Steven Munday (pictured), global practice leader for renewable energy at Willis Towers Watson, dubbed “Gen R.”
“Gen R isn’t something you identify in the moment, it’s defined in hindsight,” Munday said in an interview with Insurance Business.
“What makes us think we’re in that moment is the research we’ve done on what constitutes a tipping point in low-carbon power generation and energy storage. We believe that point will come within the next five years, perhaps between 2026 and the early 2030s.”
A softening insurance market, marked by increased capacity and a willingness to provide creative solutions, presents both opportunities and risks for brokers seeking to support renewable energy clients in this pivotal phase.
Munday believes two areas in the renewables sector will stand out as particularly significant in the near term: the hybridization of energy generation technologies and the development of energy storage solutions.
For example, projects that combine wind or solar power with large-scale batteries offer a way to smooth the intermittency that has long challenged renewables. They can also improve the stability of revenues, but this integration creates new layers of risk. When one component of a hybrid project fails, the impact often extends across the entire system.
Brokers who can understand and communicate these interconnected risks, said Munday, will be well-placed to help clients secure the right cover.
Another theme shaping “Gen R” is the way risk engineering is used. For many renewable companies, this remains a sticking point. Willis’ Global Clean Energy Survey shows that more than half of respondents see it as a barrier to insurance.
But Munday argued that this does not have to be the case. “The goal is to use risk engineering to demystify the technology and make it an enabler for insurability, which in turn supports financing from debt markets,” Munday said.
Hybridization is a good example, he added. “Technologies that are proven individually may be combined in a configuration that hasn’t been seen before. That doesn’t necessarily mean higher risk.
“It’s up to risk engineers to understand how these systems work, identify real risk factors, and help insurers grasp them. That way, we can secure appropriate rates, build the right risk transfer package, and get projects insured and financed. Brokers, engineers, and insurers form a tripartite relationship that’s critical here.”
Insurers themselves are evolving to meet the complexity of the projects entering the market. Munday describes a shift toward multi-skilled underwriting teams, capable of drawing on expertise from power, oil and gas, marine, and construction.
Rather than handing projects from one product line to another at different stages, he said, insurers are increasingly looking to remain engaged throughout the entire life cycle, from construction to operation.
“That might involve crossover between the power market and upstream oil and gas, or between marine and construction,” Munday said. “Insurers are moving toward multi-skilled, cross–product line training.”
This continuity, he argued, allows carriers to deepen relationships with clients and better understand how risks develop over time.
While these developments create scope for innovation, they do not diminish the significant challenges facing the sector.
Geopolitical instability is the most serious threat to project financing and development, according to Willis’ Q1 2025 survey of renewable energy firms, followed closely by supply chain disruption.
“From an industry perspective, geopolitical change is the greatest concern because it affects political support and stability, which are essential for financing and moving projects forward,” said Munday. “From a risk standpoint, supply chain disruption is a bigger issue for the insurance market.”
Renewable equipment relies on a web of manufacturing, so any delay in a critical component can trigger long downtimes and significant revenue loss for firms. With demand growing exponentially, those delays could stretch even longer.
Natural catastrophe risk presents another pressing challenge, particularly as climate change increases the frequency and severity of weather events. Munday points to secondary perils, such as severe convective storms, as a growing concern.
“Many new developments are in higher-risk areas,” he said. “A major event could easily double typical annual natural catastrophe losses. The market could respond, but it would still be a major hit.”
Despite these risks, Munday sees no shortage of innovation. Technologies such as pumped hydro storage, which uses water reservoirs as giant batteries, could quickly address some of the sector’s storage challenges if supported by the necessary political will and investment.
In particular, Munday is intrigued by the potential of kinetic energy generation from everyday motion, including projects that harness the foot traffic of city sidewalks.
And while still speculative, the concept of space-based solar power, i.e. collecting energy via satellites, illustrates how rapidly technology can shift from the drawing board to reality, as demonstrated by the surge in satellite deployment in recent years.
“It’s not here yet, but with tens of thousands of satellites now orbiting Earth, it’s worth watching,” said Munday. “Ten years ago, that level of satellite presence would have seemed far off.”
For brokers, the arrival of Gen R demands a shift in approach. Success will hinge on their ability to present new technologies in ways that make them insurable, to anticipate and mitigate complex risk profiles, and to forge closer, more integrated relationships with insurers and clients.
Munday emphasized that brokers are not merely intermediaries, but pivotal actors in making the clean energy transition bankable.
“We’re asking ourselves whether, in five, 10, or 15 years, we’ll look back and say, ‘That was the period that defined Generation Renewables,’” he said. “Brokers have a strong role to play by being client-centric, understanding the technology, and working with in-house risk engineers.”
