ÐÓ°ÉPro

Grid stability and system strength have become major issues around the world. At press time, New York is in the midst of rolling blackouts. Blistering heat is straining power grids across the eastern half of the U.S., leading to a blackout in part of New York City’s borough of Queens as the local utility issued a warning to conserve electricity.

The scenario is not new. My home state of Texas sees alerts every summer for residents to turn down the A/C on extremely hot summer days due to high power demands. And with the growing energy demand due to more and more technology needs, such as AI data centers, the U.S. and the world need to think about a mix of energy supply that works together to keep the lights, and A/C, on.

This special issue of ÐÓ°ÉPro highlights the growing renewable energy industry and speaks with insurance specialists dedicated to this increasingly important sector of the economy. Because without power there might not be an economy–at least not one that operates on technology.

Renewable energy is growing in the United States and worldwide. In the U.S., wind and solar energy generated more electricity in 2024 than coal for the first time ever. But growth extends far beyond wind and solar. There’s growing interest in nuclear energy, hydropower, and geothermal power. And then there’s the expanding industry of power storage to relieve pressure on U.S. power grids during heavy energy months.

“We need power for everything, for our daily lives, down to different industries–from manufacturing to technology. We need reliable power,” Priscilla Pazmino-Vitela, head of natural resources – Americas for Allianz Commercial, told ÐÓ°ÉPro in this special report (see page 28). The energy industry will continue to see growth from a variety of energy providers, including renewables “because we need to have reliable energy just to meet the demand that we’re seeing in innovation technology, or data centers,” she said.

While U.S. renewable energy maybe hit a road bump in investment due to a possible repeal of federal tax credits in some areas, global investment isn’t slowing down overall. Investment in clean technologies–renewables, nuclear, grids, storage, low-emissions fuels, efficiency, and electrification–is on course to hit a record $2.2 trillion this year.

And that’s good news for insurance specialists in this space.

“There absolutely is an opportunity to drive this green transition and help this green transition along the way,” Fraser McLachlan, CEO of GCube and recently appointed chairman of the newly formed Tokio Marine GX (TMGX), says. “And make some premium out of it, as well.”

Topics Trends