Renew Risk has launched two pioneering catastrophe models for offshore wind assets in Japan – a typhoon model and an earthquake model. The two models are the first and only commercially available catastrophe models designed specifically for offshore wind farms in Japan – one of the most active regions in the world for natural catastrophes.

Wind power is a growing focus in Japan’s decarbonisation strategy, with cumulative capacity increasing an average 20.4% each year since 2000, and further growth expected with two groups selected for the third offshore wind power round in December 2024.

Renew Risk’s catastrophe models are the first attuned to at-site parameters, offering an unparalleled approach for risk professionals to understand, quantify and manage risk to the country’s offshore wind farms.

Dr Joshua Macabuag, Chief Product Officer and Co-Founder of Renew Risk, said:

“The Japanese Government has big plans to grow offshore wind, so it’s important for risk and energy professionals to quantify the portfolio-level risks to those infrastructure assets. With our world-leading team of offshore wind and cat-risk experts, we have delved into the specifics of Japan’s earthquake and typhoon risk to develop the world’s first cat models built specially for the country’s pipeline of assets (including never-before built technologies such as specific floating foundation turbines).”

Japan Typhoon Offshore Wind Farm Model: combines both stochastic and historic event sets in the only catastrophe model for the region to include wave height and wind speed using local calibrations.

Japan Earthquake Offshore Wind Farm Model: Built using detailed physics-modelling, this model is unique in its inclusion of ground shaking, submarine liquefaction and landslide.

For capital and pricing teams, exposure managers, underwriters, developers and investors, Renew Risk’s Japan Earthquake Offshore Wind Farm Model and Japan Typhoon Offshore Wind Farm Model represent a step forward in offshore wind farm risk management for the region.

“Our aim is to enable insurers, lenders and asset developers / owners / operators to reduce uncertainty and enable improved financial and physical planning, building resilience into the energy transition,” added Dr Joshua Macabuag.

The output of Renew Risk’s new models has been validated by a number of industry-leading early adopters. The two Japan models add to the firm’s existing portfolio of renewable energy focussed catastrophe models – US Hurricane, Taiwan Typhoon and Taiwan Earthquake, with future models for additional regions and perils due to launch in coming months.