New Delhi, June 29: Nearly 90% of India’s planned renewable energy projects could face high to extreme climate risks by 2030, according to a new report by the Zurich Group, highlighting the growing need to build climate resilience into the country’s clean energy infrastructure.
The study assessed 871 proposed renewable energy projects across 10 Indian states, representing a combined capacity of approximately 267 GW. It found that 66% of these projects could face severe climate-related risks by the end of the decade if preventive measures are not incorporated during development.
Despite the findings, the report describes the situation as an opportunity rather than a crisis, noting that many of the projects are still in the planning or construction phase. Integrating climate-resilient designs now would be significantly more cost-effective than retrofitting infrastructure later.
Solar power, which accounts for nearly 70% of the proposed capacity, is considered particularly vulnerable to hailstorms, which can damage solar panels and reduce long-term power generation efficiency. The study covers 593 solar projects with a combined capacity of 182,286 MW.
The report also identifies significant risks for 230 wind energy projects with a capacity of 44,177 MW, citing cyclones, flooding, and changing monsoon patterns as major threats to future operations.
Meanwhile, 48 hydropower projects, representing 40,188 MW of capacity, face the highest financial risk due to changing river flows and shifting hydrological patterns caused by climate change. The report warns that future hydropower planning can no longer rely solely on historical river flow data.
To improve resilience, the report recommends mandatory climate risk assessments during project planning, stress testing of high-risk assets, deployment of climate-resilient technologies, stronger coordination between grid infrastructure and power assets, and attracting investment by highlighting the long-term financial benefits of climate adaptation.
According to the study, allocating just 2% of total project capital expenditure towards climate resilience measures could reduce potential losses by up to 75%, generating an estimated 38-fold return through avoided future damages.
The findings underscore the importance of integrating climate adaptation into India’s renewable energy expansion as the country accelerates its transition towards a cleaner and more sustainable energy future.
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