Renewable Energy – Climate Risks Threaten India’s Expanding Clean Power Infrastructure
Renewable Energy – India’s clean energy expansion is moving at an impressive pace, but a new report warns that much of this growing infrastructure could face serious climate-related threats within the next few years. The study estimates that nearly 90 per cent of the country’s planned renewable energy assets may be exposed to high or critical climate risks by 2030, underscoring the importance of integrating resilience measures early in project development.
Large Renewable Portfolio Faces Increasing Climate Exposure
The report, jointly released by Zurich Kotak General Insurance and Zurich Resilience Solutions, evaluated 871 renewable energy project sites spread across the ten Indian states with the highest installed and planned renewable energy capacity. Together, these projects account for an estimated 267 GW of planned power generation capacity.
According to the findings, a significant share of these renewable energy sites is vulnerable to extreme weather events, including floods, hailstorms, wildfires and tornadoes. Around two-thirds of the assessed assets were classified under the highest risk category, suggesting that future climate conditions could substantially affect energy infrastructure if preventive measures are not introduced.
Climate Change Adds New Challenges to Energy Expansion
Researchers noted that while India continues to strengthen its position as one of the world’s fastest-growing renewable energy markets, changing climate patterns are creating new operational and financial risks for clean energy investments.
The report highlights that the planning and construction stages offer the most cost-effective opportunity to improve resilience. Incorporating stronger engineering standards, selecting lower-risk locations and adopting climate-sensitive project designs can significantly reduce future damage and disruption.
Early Investment Can Deliver Long-Term Savings
The analysis estimates that investing approximately USD 4.6 billion in resilience measures—around two per cent of the replacement value of the renewable energy portfolio—could dramatically reduce future climate-related losses.
Without such investments, projected financial damage could reach nearly USD 55 billion. However, proactive resilience planning could reduce those losses to roughly USD 27 billion, representing substantial long-term savings. The report estimates that every dollar spent on resilience could generate nearly six dollars in avoided losses.
Solar Projects Dominate Future Capacity
Solar power continues to account for the largest share of India’s renewable energy pipeline, both in terms of installed capacity and the number of planned project sites. Wind and hydropower projects also remain important contributors, although they represent a comparatively smaller portion of the country’s clean energy portfolio.
Given the widespread reliance on solar infrastructure, strengthening protection against climate-related hazards will play a crucial role in ensuring reliable electricity generation in the years ahead.
Recommendations for Building Stronger Infrastructure
To improve the long-term durability of renewable energy assets, the report recommends making climate risk assessments a mandatory part of project planning and approval processes. It also suggests conducting regular stress tests for projects located in vulnerable regions and incorporating hazard-specific resilience standards into procurement and construction practices.
In addition, the study encourages extending resilience planning beyond individual power plants to include supporting infrastructure such as transmission networks. It also recommends using comprehensive climate resilience assessments to improve investor confidence and attract long-term financing.
The report concludes that resilience should not be viewed as an additional expense but as an essential investment that strengthens operational reliability, reduces avoidable losses and supports India’s long-term clean energy transition. As renewable energy continues to play a central role in the country’s future, integrating climate resilience into project planning, financing and operations will be critical for ensuring sustainable growth.