India renewable energy climate resilience: 2% capex could halve projected losses, report says

A report said small climate resilience spending across India’s renewable energy plans could reduce future losses. It estimated that putting 2 per cent of capital expenditure into resilience may halve losses. The report placed potential losses at USD 55 billion without action. It said losses could fall to USD 27 billion with targeted measures.

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The analysis from Zurich Kotak General Insurance and Zurich Resilience Solutions estimated USD 28 billion in avoided damage. It said this equalled a 6x return on investment. The report flagged an opening for policymakers and financiers to manage climate hazards. It also named developers, lenders and insurers as key groups for protecting projects.

India renewable energy pipeline and climate risk exposure

The report reviewed 871 planned renewable energy generation sites across 10 states and Union territories. It said these sites represented about 90 per cent of India’s renewable energy capacity. It found that nearly 90 per cent of planned generation capacity may face high or critical risk by 2030. It added a 15-30 per cent chance of a major climate event.

It linked the risk to fast growth in renewable capacity and generation. The report said India’s renewable energy expansion is accelerating. It noted India is set to be the world’s third-largest renewable energy capacity holder in 2026. It also said more assets will sit in hazard-prone areas as build-out continues.

India renewable energy targets and capacity growth

The report said India’s installed non-fossil capacity reached 283.5 GW in March. It added that renewable generation is rising by around 11 per cent each year. It said this pace keeps India aligned with the 2030 goal. That target is 500 GW of non-fossil capacity.

India renewable energy resilience measures and recommendations

The report proposed steps to reduce damage and downtime from climate events. It recommended mandatory climate risk screening during project planning. It also called for stress-testing assets with higher exposure. Other steps included hazard-specific resilience standards in procurement and stronger supporting infrastructure.

It also urged project owners to measure resilience gains in financial terms. The report said this can improve access to capital for upgrades. It stated that the same approach may support better underwriting and lending decisions. The report framed resilience as a way to protect the renewable energy build-out as hazards intensify.

With inputs from PTI