Renewable energy market should “expect the worst” amid El Niño threat

Renewable energy markets have been urged to “expect the worst” as El Niño creates an even larger extreme weather threat.

New market insights by solutions organisation Tokio Marine GX (TMGX) show losses are becoming more severe and happening earlier in the year, with North America accounting for the largest share of renewables losses globally.

TMGX’s Expecting the Worst report estimates that more than $300m (£227m) of renewables market losses were recorded globally before the traditional extreme weather season had begun – with El Niño adding another variable to the seasonal picture and the need for preparedness.

Meanwhile, onshore wind had previously been the main driver of losses globally, utility-scale solar now accounts for 80–90% of annual extreme weather losses, reaching a peak of $228m (£172m) in 2024.

Due to this, the organisation are calling for the clean energy market to build resilient recovery strategies for green initiatives facing major weather losses.

It argues that preparedness falls upon three foundations including, transparency in data analysis, the insurance market being willing to innovate and creating systems where the value chain can better collectively mitigate risk.