Co-location, Co-location, Co-location

June 2026 Report

The renewable energy market has undergone a rapid transformation in recent years. Previously, project developers were laser-focused on Location, Location, Location – where to find the sunniest spot for a solar farm, where to find the windiest spot for wind turbines, and how close can we get a project to a grid connection.

But this is no longer the sole concern of project developers. Today, technological evolution, geopolitical tension, growing energy demand, grid stability issues, and the rise of data centres are all driving a shift in focus. The renewable energy market is now aiming to deliver a product that offers more than intermittent power; targeting operational flexibility through integrated energy systems that unlock greater value for portfolio owners, the grid, consumers, and the planet.

Co-location, Co-location, Co-location has become the mantra of the next generation of developers, utilities, investors and Independent Power Producers pursuing co-located, hybrid project development.

Modern projects are taking advantage of the falling costs of battery energy storage (BESS), coupling storage with traditional renewables to generate more revenue and provide firm, dispatchable clean energy for the grid. But that’s not all. A growing number of developers are responding to the needs of hard-to-abate industrial processes by co-locating renewables with emerging ‘Power-to-X’ technologies to produce high-energy density green molecules, such as green hydrogen.

Insurance cannot stay static as the renewable energy market changes. Underwriters must adapt to new conditions. In the short-term, they must familiarise themselves with the new revenue models and risk exposures that today’s renewables-plus-storage projects bring. In the long-term, greater insurance product innovation is necessary to support the development of new types of co-located green projects.

Our new ‘Co-location, Co-location, Co-location’ report charts the shift in focus towards ‘flexibility’ and ‘firm power’ with reference to two significant project case studies, attempt to unpack the increasingly complex business of underwriting co-located projects. In doing so we apply lessons learned from over 25 years of insuring clean technology and consider how green insurers can fulfil their roles as enablers of growth.

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