India’s $55 billion renewable energy pipeline faces climate risks

Summary

A joint assessment by Zurich Kotak General Insurance and Zurich Resilience Solutions has found that nearly 90% of India’s planned renewable energy pipeline faces high or critical exposure to climate-related hazards. The report estimates that around $55 billion worth of renewable energy assets could be exposed to climate risks by 2030, while targeted resilience investments could significantly reduce potential losses.

NEW DELHI, June 26, 2026 — Nearly 90% of India’s planned renewable energy infrastructure faces high or critical exposure to climate-related risks, according to a new assessment by Zurich Kotak General Insurance and Zurich Resilience Solutions.

The study evaluated 871 planned renewable energy projects, representing approximately 90% of India’s active renewable energy development pipeline. Researchers found that around 239 GW of planned solar, wind and hydropower capacity could be exposed to significant climate-related hazards by 2030, placing an estimated $55 billion worth of assets at risk.

The findings come as India continues to expand its clean energy capacity. As of March 2026, the country had installed 283.5 GW of non-fossil fuel power capacity, making it one of the world’s largest renewable energy markets.

According to the report, solar projects account for the largest share of climate-related exposure. Of the 871 projects assessed, 593 were solar developments, representing approximately 182 GW of planned capacity.

The study highlights several climate-related threats facing renewable energy infrastructure, including extreme rainfall, flooding, landslides, hailstorms, drought conditions and high wind events. For solar projects, hailstorms can damage panels and create micro-cracks that reduce efficiency over time, while prolonged droughts can increase dust accumulation and affect power generation.

Hydropower projects in mountainous regions face risks from flash floods and landslides, while wind energy assets may be vulnerable to extreme weather events that can damage equipment and disrupt operations.

The assessment identified significant regional variations in climate exposure. Arunachal Pradesh and Uttarakhand recorded some of the highest concentrations of projects classified as facing critical climate risks, largely due to flood and landslide vulnerabilities. Gujarat and Rajasthan, which host large renewable energy pipelines, also showed elevated levels of exposure.

Maharashtra was identified as having comparatively lower concentrations of projects in the highest-risk categories, although the report noted that resilience planning remains important across all regions.

Mark Fletcher, Head of Zurich Resilience Solutions for Asia Pacific, said climate-related events can affect renewable energy projects through both physical damage and operational disruptions, reducing energy output and increasing repair costs.

The report also examined the economic case for resilience investments. According to the analysis, allocating around 2% of project capital expenditure toward climate adaptation and resilience measures could reduce projected losses by nearly half, lowering the estimated value of assets at risk from $55 billion to approximately $27 billion.

Ajey Hegde, Head of Commercial Insurance at Zurich Kotak General Insurance, said climate resilience is becoming an increasingly important consideration for investors and infrastructure financiers evaluating long-term renewable energy projects.

The study noted that many projects remain in planning or construction stages, providing developers with an opportunity to incorporate climate-resilient design features before assets become operational.

Why this matters

• Climate exposure is growing: A large share of India’s future renewable energy capacity could face increasing risks from extreme weather and climate-related events.
• Financial implications for developers: Climate-related damage can affect project economics through repair costs, reduced generation and operational disruptions.
• Investor focus on resilience: Infrastructure investors are increasingly evaluating climate adaptation measures when financing large-scale energy projects.
• Opportunity for early action: Many planned projects can still incorporate resilience measures during the design and construction phases, potentially reducing future losses.

FAQs

Q1: What are the main findings of the report?

The assessment found that nearly 90% of India’s planned renewable energy pipeline faces high or critical climate-related risks, with around $55 billion in assets potentially exposed by 2030.

Q2: How much renewable energy capacity was assessed?

The study evaluated 871 planned projects representing approximately 239 GW of solar, wind and hydropower capacity.

Q3: Which renewable energy sector faces the highest exposure?

Solar energy projects account for the largest share of exposed capacity, representing around 182 GW of the assessed pipeline.

Q4: Which states face the highest climate-related risks?

Arunachal Pradesh and Uttarakhand showed some of the highest concentrations of projects in critical-risk categories, while Gujarat and Rajasthan also recorded significant exposure levels.

Q5: How can developers reduce climate-related risks?

The report estimates that investing about 2% of project capital expenditure in resilience measures could significantly reduce projected losses.