About 75% of new clean energy generation sites in southeast Asia will face major climate risks by 2030, according to a Zurich study.

“In more simple terms, this equates to the approximate annual power needs of 180 million households,” the insurer’s Energy Resilience report says.

“Fortunately, our modelling shows there is a clear opportunity to materially reduce those risks, with investment in resilience capable of halving expected future losses – if done now.”

Zurich says an upfront investment of about $US13 billion ($18.3 billion) would reduce the forecast financial exposure by 40%-50%, delivering about 6.5 times return on investment.

Roughly $US165 billion ($233 billion) of renewables assets are at risk across the region unless targeted investment in climate resilience is undertaken.

“Southeast Asia has a clear opportunity to protect the value of its clean energy transition before losses materialise,” Zurich Asia-Pacific head of resilience solutions Mark Fletcher said.

“Our analysis shows that targeted resilience investment can significantly reduce future climate-related losses, while also improving the insurability, bankability and long-term performance of renewable energy assets.”

The report covers 10 southeast Asian countries, focusing on solar, onshore wind, hydropower and geothermal assets that are announced, planned or under construction.