Captive Intelligence, in partnership with AXA XL and Aon, has launched its latest technical report, focused on the global transition to low-carbon energy and the opportunity for captive insurers to support organisations embracing these new technologies.

Executive Summary

The global transition to low-carbon energy is accelerating, driven by rising electricity demand, decarbonisation commitments and the expansion of renewable energy. Solar and wind are expected to account for the majority of new capacity over the coming decade.

READ AND DOWNLOAD THE REPORT HERE

The global transition to low-carbon energy is accelerating, driven by rising electricity demand, decarbonisation commitments and the expansion of renewable energy. Solar and wind are expected to account for the majority of new capacity over the coming decade.

As renewables expand, the role of the electricity grid is becoming increasingly central to the success of the energy transition. In many regions, grid infrastructure is ageing and capacity is constrained by networks that were not designed to accommodate large volumes of intermittent renewable power.

As a result, grid congestion is emerging as a key challenge for renewables developers and policymakers. Addressing these issues will require substantial investment and improved grid resilience.

This shift is changing the nature of investment across the energy sector. Capital is increasingly moving toward the infrastructure that enables renewable power to be transmitted efficiently. Transmission systems, subsea interconnectors and grid reinforcement projects are becoming critical parts of the renewables space.

Emerging technologies such as battery storage and floating offshore wind are scaling quickly, but they introduce new risk profiles. Limited claims history and evolving data can make these risks more difficult to assess, particularly during the early stages of deployment.

Policy and regulatory dynamics also remain an important factor shaping the renewables landscape. In response, organisations are increasingly adopting more strategic approaches to risk management and capital deployment.

Alongside traditional insurance markets, alternative risk financing mechanisms — including captive structures — are being explored as tools to manage volatility, support innovation and optimise the use of available insurance capacity.

As renewables capacity continues to grow and energy systems become more interconnected, the ability to manage risk across increasingly complex infrastructure and project structures will be key to supporting the next phase of the transition to decarbonised electricity generation.

Read and download the full report here.