A targeted upfront investment of just 2% of capital expenditure (CapEx) in climate resilience measures across India’s planned renewable energy pipeline could reduce potential climate-related losses by half, according to a new report released by Zurich Kotak General Insurance and Zurich Resilience Solutions, the risk advisory arm of Zurich Insurance Group.

The study estimates that such investments could cut projected losses from USD 55 billion to USD 27 billion, delivering savings of around USD 28 billion—equivalent to a sixfold return on investment.

India, which became the world’s third-largest holder of renewable energy capacity in 2026, had reached 283.5 GW of non-fossil capacity by March and is progressing toward its 2030 target of 500 GW. Renewable generation is currently expanding at approximately 11% annually.

The report is based on an assessment of 871 planned renewable energy projects across 10 states and union territories, covering nearly 90% of India’s renewable energy pipeline.

High Exposure to Climate Risks

The analysis highlights that nearly 90% of planned renewable capacity faces high or critical climate risk exposure by 2030, with a 15%–30% probability of major climate events. Around 66% of the pipeline is expected to fall under the highest risk categories.

Key hazards identified include floods, hail, wildfires, and tornadoes, which can impact civil structures, substations, solar modules, and operational continuity.

Solar energy projects account for the majority of exposure, with 593 sites and 182,286 MW of planned capacity. Hydropower, while fewer in number at 48 sites, represents significant financial exposure due to high infrastructure costs.

Need for Early Climate Resilience Investment

Ajey Hegde, Head of Commercial Insurance at Zurich Kotak General Insurance, said integrating climate resilience early in project development can help protect asset value, improve insurability, and enhance investor confidence.

The report outlines five key recommendations, including mandatory climate risk screening during planning, stress-testing high-risk assets, embedding hazard-specific design standards, expanding resilience beyond project boundaries, and quantifying resilience benefits to unlock capital.

Systemic Risk to Energy Transition

Mark Fletcher, Head of Zurich Resilience Solutions Asia Pacific, noted that embedding resilience at early stages of project development can significantly reduce losses and improve financial viability for renewable energy assets.

The report concludes that as India accelerates its clean energy expansion, resilience must become a core component of planning, financing, and construction to ensure long-term reliability, insurability, and investment security.

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