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The energy policy shaping space is influenced by the demands of sustainability goals, associated
with the complexity of the socio-economic and biophysical systems. Rising fossil fuel prices, societal
impacts of energy use and observed climate change make the exploration of renewable energy
more important than ever (Kowalski et al., 2008). This paradigm shift, combined with the
considerable amount of infrastructure and investment required for renewable energy, has led to
an increasing presence of private and institutional investors including insurers, exposed to various
risks.
According to the US Energy Information Administration (EIA), world energy consumption will grow
by 48% between the period 2012-2040 (US EIA, 2017: online). This trend is attributable to strong
economic growth emerging from Non- Organisation for Economic Cooperation and Development
(OECD) countries (US EIA, 2017: online), including South Africa. Working as an alternative to fossil
fuels, renewable energy technologies will play an integral role in meeting the world s growing
energy demand adding to the global energy mix (IRENA, 2016: 14). Furthermore, the share of
renewables in the global energy mix can be cost-effectively doubled by 2030 using existing
technologies. Along with energy conservation practices, an overall improvement in the global
energy profile can be achieved which would significantly reduce greenhouse gas emissions and put
the world on track to limit global mean temperature rise to below 2° Celsius (IRENA, 2016: 14). This
level of renewable energy deployment means scaling up current investment in renewables to 500
billion US dollars (USD) per year by 2020. Global investment must then reach USD 900 billion each
year up to 2030 (IRENA, 2016: 14). Almost two-thirds of this investment would be in the power
sector, but renewables for heat and transport also need to grow significantly. Developing markets
with fast growing energy demand will require the largest increase in investment (IRENA, 2016: 14)
The South African energy sector underwent a shock, signified by a shortage in bulk electricity which
was declared a national emergency in 2008, and in 2014. Eskom underwent other disturbances in
energy supply when in 2015 it implemented 99 days of load shedding causing a decrease in mining
and manufacturing output