Europe’s clean energy systems face significant climate hazards if action is not taken to protect them, Zurich has warned.

The insurer used geospatial modelling tools to analyse more than 25,000 power generation sites in France, Germany, Italy, Spain and the UK.

It says that without greater protection, 83% of clean energy generation infrastructure, notably solar, faces a high risk of climate damage, and 92% of energy storage assets are in danger.  

France and Italy have the greatest exposure, at €35 billion ($62.77 billion) and €36 billion ($64.56 billion) respectively in asset value risk, according to a Zurich report.  

The report provides a “road map” for protecting assets, detailing upgrades to withstand extreme weather and the need for climate stress testing.

It also suggests embedding resilience in energy infrastructure design, increasing access to climate risk data and frameworks to support investment in asset protection.  

“The energy transition is a critical imperative for business, the economy and society,” Zurich commercial insurance CEO Sierra Signorelli said. “While renewables are essential to this shift, our research shows Europe’s renewable infrastructure faces rising climate risks.  

“By building resilience, we not only reduce those risks – we protect insurability and unlock continued investment in clean energy.”  

See the report here.