This situation jeopardizes efforts to curb climate change.
Large losses from natural disasters have skyrocketed insurance prices for wind and solar farms, threatening efforts to stop climate change since these infrastructures are crucial against greenhouse gas emissions, according to some experts cited by Bloomberg.
Insurance premiums for solar plants recorded last year a increase of up to 50% in the US, which leads the list of countries most affected by climate catastrophes.
Faced with this rise in costs, some renewable energy companies have suspended some of their projects in risk areas. Global solar power developer and operator Lightsource BP has so far avoided developing power projects on the US Gulf Coast due to the threat of hurricanes. For its part, the company SB Energy has given up signing lease contracts or acquiring some projects in the initial phase in Texas and the US Midwest due to the risk posed by hailstorms.
In addition to rising insurance premiums, insurers have limited your coverage to $10 million for high-risk areas, forcing large projects to resort to multiple insurance companies.
The increase in insurance prices affects not only the US, but also Italy and Japanwhere the average cost is the highest in the world due to the risks of natural disasters.