RENT –
Investing in the energy of the future
The future belongs to renewable energy. That is the reason why Munich Re launched its RENT project, investing mainly in wind farms, solar parks and new technologies in order to meaningfully promote innovative power generation.
Our RENT (Renewable Energies and New Technologies) investment project was launched in mid-2010. Since then, Munich Re and MEAG experts and have been sounding out the potential for strategic investment in renewable energy and new technologies, the main focus being on non-fossil power generation. We are particularly interested in the efficiency and energy-saving aspects. Our commitment to sustainability also brings with it risk-return advantages, since this form of investment is assessed as profitable while entailing moderate risk.
Applying all-round knowledge
The RENT initiative focuses mainly on solar and wind farm investments, but we also consider, for instance, geothermal energy, biogas and other attractive projects in the field of renewable energy and new technologies. We assess the risk of the corresponding investments and participations using our expertise in technological innovations and location analysis, areas where our reinsurance specialists have built up specific experience over the years. Munich Re aims to invest up to €2.5bn in this segment over the coming years, depending on the prevailing market conditions.
Significant investment in wind energy
At the turn of the year 2010/11, Munich Re invested in German wind energy via its asset manager MEAG. We acquired 40 wind turbines in eleven wind parks in north-eastern Germany. The turbines have a combined output of 150 million kWh, equivalent to the annual consumption of 42,000 households. Producing electricity at such wind parks saves up to 97,000 tonnes of carbon dioxide compared with generation at conventional power plants. At an underwriting level, Munich Re has been involved in renewable energy for many years – for instance, in developing new insurance solutions. Our commitment has had a double leverage effect: by promoting new technologies through investments and innovative coverage concepts, we contribute to the advance of societal developments.
RENT investments, which are spread over a range of renewables sectors, promote technological growth.
Consolidating synergy effects, developing new products
Our new strategic focus will enable us to exploit overlaps between the investment side and our core business. We are confident that our insurance know-how will continue to enable us to take better investment decisions and that these decisions are likely to lead to third-party investments in the respective segments. Particularly beneficial in this regard is our international experience and know-how at the various locations and in the different fields of technology. At the same time, the knowledge we gain from working with new renewable energy partners will be a useful resource for the development of new insurance products. As a risk carrier and investor, we promote the spread of sustainable technologies, simultaneously generating a synergy between business and our commitment to sustainability.
