Lloyd’s launched a renewable energy consortium in response to the growing needs of the Asia-Pacific region and supporting countries, as they transition to greener energy, Lloyd’s announced late last year.
Developed by the Lloyd’s Asia platform, the consortium pools underwriting expertise and capacity among the participating syndicates for renewable energy risks and is positioned to capitalize on the growth opportunities seen in this sector, such as onshore construction, as well as the operational risks of solar and wind energy projects.
The new consortium has been developed by Chaucer, Markel, and Munich Re Syndicate Ltd (MRSL) and has a maximum working capacity of $100 million per project.
The renewable energy sector has experienced considerable growth in Asia over the past decade with solar and wind power expanding rapidly and major countries in the region investing in renewable energy. These countries include India, Japan, Vietnam, Korea and China as the world’s largest producer.
The Association of Southeast Asian Nations (ASEAN) has set an aspirational regional renewable energy target to derive 23 percent of its total primary energy supply from renewables by 2025, said Lloyd’s, quoting the International Renewable Energy Agency.
Asia Pacific is expected to continue to outperform other regions as a market for the investment and development in renewable energy over the coming decade with capacity predicted to increase by up to 2 terawatts by 2030, according to Boston Consulting Group, “Riding the Renewables Wave in Asia-Pacific,” Jan. 11 2021.
Pavlos Spyropoulos, country manager, Singapore and CEO, Lloyd’s Asia, said the consortium will allow Lloyd’s to play a “greater role in enabling the development of renewable energy projects in Asia.”