India's Renewable Energy Portfolio Faces 90% Climate Risk Exposure by 2030, Says Zurich Kotak General Insurance

A report by Zurich Kotak General Insurance and Zurich Resilience Solutions reveals that 90% of India's renewable energy portfolio could face high or critical climate risks by 2030.  

The assessment covered 871 sites across 10 states, representing a planned capacity of 267 GW. The report highlights the urgent need for resilience measures as India rapidly expands its clean energy capacity. 

High Climate Risk for Renewable Energy Sites 

The report evaluated 871 renewable energy sites across the 10 states with the highest renewable energy capacity.  

These sites, with a combined planned capacity of 267 GW, face concentrated exposure to climate risks such as tornadoes, wildfires, floods, and hail.  

By 2030, 90% of these assets are expected to be at high or critical risk, with 66% rated as critical. 

Need for Early Resilience Measures 

India is advancing its renewable energy initiatives at a rapid pace but changing climate conditions pose significant challenges.  

The report stresses the importance of integrating resilience measures during the planning and construction stages of projects, when adaptation costs are relatively low.  

Smarter design, better site selection, and targeted resilience measures are recommended to protect these assets from adverse climate impacts. 

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Investment in Resilience 

The report estimates that an investment of $4.6 billion, approximately 2% of the portfolio's replacement cost, could substantially reduce the financial impact of climate-related risks.  

This investment could lower potential climate-related losses from $55 billion to $27 billion, offering a return of 6 times for every dollar invested in resilience measures. 

Recommendations for Strengthening the Sector 

To enhance the resilience of the renewable energy sector, the report outlines 5 key recommendations.  

These include mandatory climate risk screening during project planning and permitting, stress-testing high-risk assets, integrating hazard-specific resilience measures into procurement, extending resilience planning to supporting infrastructure, and using resilience assessments to attract investment.  

The report emphasises that resilience should be viewed as an enabler of growth, helping to protect reliability, reduce avoidable losses, and improve confidence among investors, insurers, and businesses. 

Conclusion 

The report highlights that 90% of India's renewable energy sites, representing 267 GW capacity, face high climate risk by 2030. A $4.6 billion investment could reduce potential losses from $55 billion to $27 billion, emphasising the need for early resilience measures. 

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