Renewables sector warned to expect the worst over extreme weather events

The renewable energy market has been warned to ‘expect the worst’ as El Niño intensifies the threat from extreme weather.

A report by insurance group Tokio Marine GX said the global renewables market is on the frontline in the battle against natural catastrophe.

With this year's El Niño predicted to intensify extreme weather, renewables developers, asset owners, and risk managers need to shift their focus from disaster prevention to disaster recovery, according to the report.

In early 2026 alone, the report estimates that more than $300m of renewables market losses – including damage to wind turbines and solar panels - were recorded globally before the traditional extreme weather season had begun.

While onshore wind had previously been the main driver of losses globally, utility-scale solar now accounts for 80–90% of annual extreme weather losses, reaching a peak of $228m in 2024.