The increasing reliance on renewable energy has brought new challenges in financing and insuring renewable assets. Accurately assessing risks associated with solar and wind farms is crucial, particularly as climate-related disasters become more frequent. London-based Renew Risk aims to address these challenges by providing advanced risk modelling and analytics for renewable energy projects. The company’s latest funding round aims to enhance its capabilities and accelerate the deployment of sustainable energy solutions.
Renew Risk has previously gained attention for its efforts in refining catastrophe risk models tailored to renewable energy infrastructure. In 2023, it participated in the Lloyd’s Lab accelerator, leveraging industry insights to enhance its US catastrophe risk model. The company’s approach aligns with increasing market demands for precise risk assessment tools, particularly as insurers and financiers seek to mitigate uncertainties in the renewable energy sector. The latest funding round indicates growing confidence in its ability to meet these needs.
How will the funding be used?
The company has secured £5 million in funding, with Molten Ventures leading the round alongside contributions from Lloyd’s, Insurtech Gateway, and angel investors. The investment will be directed towards refining Renew Risk’s proprietary risk models, expanding its team of experts, and strengthening its presence in international markets. These enhancements are expected to provide more accurate assessments of climate-related risks affecting renewable energy projects.
Ashima Gupta, CEO and co-founder of Renew Risk, commented on the investment:
“This investment will accelerate our ability to build sophisticated risk models for the renewable energy sector, empowering stakeholders to navigate the complex challenges of disaster risk with confidence.”
Why is risk modelling crucial for renewable energy?
Reliable risk modelling is essential to facilitate investment and insurance in renewable projects. Without accurate assessments, financial backers face uncertainty about the longevity and security of wind and solar farms. Renew Risk integrates advanced analytics to evaluate risks from hurricanes, earthquakes, and storms, enabling stakeholders to make informed decisions.
George Chalmers, Head of Climate at Molten Ventures, highlighted the significance of such solutions:
“Renewable assets coming online need to be financed and insured. The pace of deployment is being impaired by the lack of appropriate risk modelling for these new assets—leading to risk that isn’t properly quantified and priced.”
The company’s solutions are designed to support insurers, brokers, asset managers, and developers in mitigating risks, ultimately contributing to a more stable renewable energy sector. By providing detailed analytics, Renew Risk aims to improve the financial lifecycle of clean energy assets from initial investment to long-term sustainability.
Lloyd’s, a global insurance marketplace, has also reaffirmed its support for Renew Risk, with Warren Clegg, Head of Private Assets at Lloyd’s, stating:
“Their solution will help our market and the insurance industry to have greater confidence in underwriting renewable energy projects around the world.”
Insurtech Gateway, another investor in this round, has a track record of backing startups that address climate-related and social challenges. Its involvement indicates a broader industry push toward integrating technology-driven solutions for sustainability.
As renewable energy adoption expands, the need for accurate risk assessment tools will continue to grow. Companies like Renew Risk are positioned to play a key role in ensuring that financial and insurance decisions in the sector are based on comprehensive data. The ability to predict potential disruptions caused by extreme weather events will be crucial for securing long-term investments and maintaining operational resilience. While advancements in risk modelling are improving, further refinement and adaptation will be necessary to keep pace with evolving climate risks.
