New Delhi: Nearly 90 per cent of India’s renewable energy portfolio could be exposed to high or critical climate risks by 2030, underscoring the need to integrate resilience measures into clean energy development at an early stage, according to a report released by Zurich Kotak General Insurance and Zurich Resilience Solutions, ANI reported.
The study evaluated 871 renewable energy sites across India’s ten largest renewable energy states, representing a combined planned generation capacity of around 267 GW.
According to the assessment, renewable energy assets face concentrated exposure to hazards including tornadoes, wildfires, floods and hailstorms. Of the sites assessed, 90 per cent were categorised as high or critical risk, with 66 per cent falling into the critical category by 2030.
The report noted that while India is rapidly expanding its renewable energy infrastructure, changing climate conditions are increasing the vulnerability of these assets.
It emphasised that resilience planning should be incorporated during project design and construction phases, when adaptation measures remain more cost-effective.
The study stated that stronger project design, improved site selection and targeted resilience interventions could help reduce the long-term impact of climate-related events.
Solar projects account for the largest share of India’s renewable energy pipeline, both in installed capacity and number of sites. Wind and hydropower projects also contribute to the portfolio, though at lower levels.
The report estimated that climate risks can be managed effectively if action is taken early. It projected that resilience investments of around USD 4.6 billion—equivalent to approximately 2 per cent of the portfolio’s replacement value—could substantially lower financial exposure.
According to the findings, such measures could reduce projected climate-related losses from USD 55 billion to USD 27 billion, delivering an estimated six-fold return for every dollar invested in resilience.
To improve preparedness, the report recommended five priority actions: making climate risk assessments mandatory during project planning and approvals, stress-testing vulnerable assets, integrating climate resilience into procurement processes, expanding resilience planning to supporting infrastructure and using resilience analysis to improve access to investment.
The report concluded that resilience should be viewed as a growth enabler rather than an added cost, noting that stronger protection measures can improve reliability, reduce avoidable losses and increase confidence among investors, insurers and businesses.
It added that India’s renewable energy transition presents a significant opportunity, but long-term success will depend on making climate resilience a standard component of project planning, financing and operations.
