The new energy order

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The new energy order

The New Energy Order

Wired for growth

A new energy order is taking shape worldwide. The renewable energy transition is changing how power is produced, financed and used, and creating major commercial opportunities across cleaner, more distributed energy systems.

Four forces are driving this shift:

The push to cut emissions
The need for energy security
The search for returns
Rising power demand from data centres

Together, they are redrawing the energy landscape. Established renewable energy sources like wind and solar are already growing in their share of the market. World-changing innovations from fusion to small, modular nuclear reactors (SMRs) – and surging investments in renewable energy across the board – are driving real momentum. The commercial opportunities are plentiful and boundless.

Transition investment is turbocharging

Investors have recognised the energy transition as a capital moment that has moved beyond a simple climate policy shift. Clean energy investment has moved into the trillions¹ and is now outpacing fossil fuel investment². Insurance is a core part of that story, with projects needing risk transfer to secure funding and move ahead.

“Renewable energy transition projects simply are not financeable without insurance. It acts as a critical gatekeeper to capital deployment in emerging energy systems, and where protection gaps exist, investment slows.”

Jason Kaminsky
CEO, kWh Analytics (A Beazley company)
Renewables are moving into the mainstream

Solar and wind power are no longer fringe technologies. Solar is scaling at record pace, while wind is moving closer to mainstream energy status³.

At the same time, battery energy storage systems (BESS)⁴, grid upgrades and earlier-stage solutions such as green hydrogen⁵ are attracting significant investment. Technologies that once looked speculative are becoming investable.

“Across Europe the energy mix is shifting, with wind, and solar supported by BESS storage, as renewables move toward becoming the dominant source of electricity generation.”

Teresa Merino
Regional Manager Europe – Renewable Energy, Beazley

Regulation is changing energy economics

Regulation is reshaping renewable energy investment, shifting capital to cleaner solutions. In the UK, the Emissions Trading Scheme⁶ is driving up costs for high emitters, making low-carbon alternatives attractive. In the EU, the Corporate Sustainability Reporting Directive⁷ is requiring companies to disclose standardised, assured sustainability data, raising transparency, curbing scope for greenwashing and rewarding credible transition plans.

These shifts are boosting investor confidence and speeding capital into energy transition projects - lowering barriers for green developers while increasing scrutiny and costs for carbon-heavy assets.
Energy security is now a strategic driver

Energy transition is no longer driven by climate goals alone. Since 2022, energy security has become a major policy and investment priority.⁸

Crises like the one in the Strait of Hormuz have accelerated this shift. Governments increasingly want domestic, resilient energy systems that reduce reliance on imported fossil fuels and exposed supply chains.

As a result, renewable projects that support energy independence are more likely to be fast-tracked, supported by public funding and state backing.

Data centres are reshaping demand

Data centres are becoming a major force in the transition. Their energy needs are rising fast, and leading operators are imposing stricter renewable controls⁹.

For example via the ‘24/7 clean energy’ and the subsequent hourly matching approaches, which monitor and ensure continual use of renewables. This creates overall demand for low-carbon power and more time-aligned usage insights that do not come with annual matching and improves system-wide decarbonisation.

Hyperscalers are already shaping investment in next-generation technologies including advanced nuclear and geothermal¹⁰, particularly where they can provide reliable, low-carbon baseload supply¹¹. The impact is clear – capital is increasingly flowing into scalable green energy, supporting new technologies and reshaping how data centre projects are financed and prioritised.

New players: Changing the market landscape

The investor base is widening. Infrastructure funds, pension investors, sovereign capital and large technology firms are taking bigger positions in renewable and low-carbon energy projects¹¹.

Corporate buyers are also shaping development through long-term power purchase agreements and direct investment. Utilities still matter, but they are no longer the only players funding and building new capacity.

New solutions: Emerging energy assets are creating new markets

Wind and solar power remain central, but their weather-related variability is increasing demand for wider solutions. This is driving growth in larger-scale battery energy storage systems (BESS) that provide greater storage for more consistent grid stabilisation and supply.

A broader system is also emerging around long-duration energy storage (LDES), hydrogen and EV charging infrastructure. These assets can support a further layer of reliability and make deeper decarbonisation more practical across the economy.
New growth: Electrification alone is not sufficient

The transition is moving beyond focusing on clean power generation alone. Heavy industry, shipping and other hard-to-electrify sectors require fuels, heat and infrastructure that renewables alone cannot yet provide.

The focus is shifting from just clean power generation to whole-system performance: how efficiently and reliably renewable energy is stored, moved, matched and used across the ecosystem.

A redefinition of growth and control

Emerging market players can unlock growth by filling funding gaps left by traditional utilities¹³. More agile private capital can deploy and scale new technologies faster, while direct access to clean energy helps to future-proof operations and reduce exposure to volatile public utility rates and fuel markets¹⁴.

Risk management will shape the winners

The opportunity is significant, but so is the exposure. Projects face technology risk, delivery risk, financing pressure and infrastructure constraints.

In this market, risk management is not just protective, it is a source of advantage. The organisations that align infrastructure, capital and resilience fastest will be best placed to grow.

Transition investment is turbocharging

Regulation is changing energy economics

Data centres are reshaping demand

New players: Changing the market landscape

New players: Changing the market landscape

The investor base is widening. Infrastructure funds, pension investors, sovereign capital and large technology firms are taking bigger positions in renewable and low-carbon energy projects¹¹.

Corporate buyers are also shaping development through long-term power purchase agreements and direct investment. Utilities still matter, but they are no longer the only players funding and building new capacity.

New solutions: Emerging energy assets are creating new markets

Wind and solar power remain central, but their weather-related variability is increasing demand for wider solutions. This is driving growth in larger-scale battery energy storage systems (BESS) that provide greater storage for more consistent grid stabilisation and supply.

A broader system is also emerging around long-duration energy storage (LDES), hydrogen and EV charging infrastructure. These assets can support a further layer of reliability and make deeper decarbonisation more practical across the economy.
New growth: Electrification alone is not sufficient

The transition is moving beyond focusing on clean power generation alone. Heavy industry, shipping and other hard-to-electrify sectors require fuels, heat and infrastructure that renewables alone cannot yet provide.

The focus is shifting from just clean power generation to whole-system performance: how efficiently and reliably renewable energy is stored, moved, matched and used across the ecosystem.

A redefinition of growth and control

Emerging market players can unlock growth by filling funding gaps left by traditional utilities¹³. More agile private capital can deploy and scale new technologies faster, while direct access to clean energy helps to future-proof operations and reduce exposure to volatile public utility rates and fuel markets¹⁴.

Risk management will shape the winners

The opportunity is significant, but so is the exposure. Projects face technology risk, delivery risk, financing pressure and infrastructure constraints.

In this market, risk management is not just protective, it is a source of advantage. The organisations that align infrastructure, capital and resilience fastest will be best placed to grow.

Case study: Insuring the next energy frontier

Early transition energy was driven by scaling solar, wind and battery storage. What comes next is more diverse, more decentralised and higher risk.

Explore the case study

Spotlight snapshots

Powering the energy transformation

Decarbonisation, energy security, financial returns, and rising demand from AI and new technologies are driving a rapid global shift in how energy is produced, owned, and consumed.
Reshaping the market

Record investment, rapid renewable expansion, and advances in infrastructure, storage, hydrogen, and nuclear are unlocking major prospects and boosting clean energy competitiveness globally, improving resilience, scale, and long-term system affordability.
Power is shifting

Policy shifts, rising corporate demand, and growing infrastructure needs are shifting control toward private capital, while reliability, energy security, and risk management are becoming increasingly central to competitive global success.