Mumbai, June 25, 2026\u00a0\u2013\u00a0\u00a0According to a new report released today by Zurich Kotak General Insurance and Zurich Resilience Solutions, the risk advisory division of Zurich Insurance, a targeted upfront investment of just 2% of capital expenditure (CapEx) in climate resilience measures across India\u2019s planned renewable energy pipeline could cut potential climate-related losses by half, from USD 55 billion to USD 27 billion, an estimated saving of USD 28 billion, equating to a 6x return on investment.<\/p>\n
The findings point to a significant opportunity for policymakers, investors, developers,\u00a0lenders\u00a0and insurers to protect the renewable energy build-out as climate hazards intensify.\u00a0 India became the world\u2019s third-largest renewable energy capacity holder in 2026, with installed non-fossil capacity reaching 283.5 GW by March. Renewable generation is expanding at around 11% annually, keeping India on track towards its national 2030 target of 500 GW from non-fossil sources.\u00a0<\/p>\n
The study draws on data from 871 planned renewable energy generation sites, accounting for 90% of India\u2019s renewable energy capacity.\u00a0 These are spread across 10 states and union territories \u2013 Andhra Pradesh, Arunachal Pradesh, Gujarat, Karnataka, Ladakh, Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh and Uttarakhand.<\/p>\n
The commercial case for\u00a0early action\u00a0is compelling. By embedding resilience into planning, financing, design and construction, asset owners can reduce avoidable losses, improve insurability and bankability, and strengthen the long-term reliability of clean power generation that will be critical to economic growth, industrial\u00a0development\u00a0and energy security.\u00a0\u00a0 The report finds that nearly 90% of the planned renewable energy generation capacity across India is likely to face high or critical risk exposure, i.e. a ~15% to 30% chance of experiencing a major climate event, by 2030.\u00a0 This underscores both the scale of exposure and urgency of resilience focused investment.<\/p>\n
Ajey Hegde, Head\u00a0\u2013\u00a0Commercial Insurance, Zurich Kotak General Insurance said,\u00a0\u201cThe renewable energy transition will require climate finance at significant scale, and that capital must be directed towards infrastructure that can withstand climate risks. Building resilience in from the start can help protect investment value, improve\u00a0insurability\u00a0and reduce future losses, while giving public and private capital greater confidence to invest.\u201d\u00a0<\/p>\n
The report sets out five practical actions to help governments, investors, developers and operators move from risk identification to resilience investment:\u00a0<\/p>\n
Make climate risk screening mandatory at planning and permitting:\u00a0Forward-looking climate screening should become a standard requirement for site\u00a0selection, project approval and permitting.\u00a0Historical baselines are no longer sufficient for assets expected to\u00a0operate\u00a0into the 2050s and beyond.\u00a0Early screening also allows resilience measures to be introduced when costs are\u00a0lower\u00a0and design flexibility is greatest.\u00a0<\/p>\n
Stress-test the highest-risk assets first:\u00a0With 66% of assessed renewable energy capacity projected to sit in Categories 4 and 5 by 2030, Zurich recommends prioritising the most exposed projects for multi-hazard stress-testing.\u00a0This can help quantify potential losses,\u00a0identify\u00a0the\u00a0main\u00a0risk\u00a0factors\u00a0and create a roadmap for\u00a0stronger\u00a0protection.\u00a0<\/p>\n
Build hazard-specific resilience into procurement:\u00a0Long-term resilience is often\u00a0determined\u00a0before an asset is built. Zurich recommends embedding requirements such as wind loading, hail resistance, flood elevation, drainage, fire protection, corrosion resistance and redundancy into design and procurement standards, rather than treating them as optional upgrades.\u00a0<\/p>\n
Treat system resilience as part of asset resilience:\u00a0Renewable energy assets depend on the wider network around them, including grid infrastructure, interconnection, access roads, water systems,\u00a0communications\u00a0and emergency response. Zurich recommends extending resilience planning beyond the project boundary to support faster recovery after severe climate events.\u00a0<\/p>\n
Use resilience quantification to unlock capital:\u00a0Resilience can be translated into financial terms. By showing how upfront design investment can reduce value at risk, improve\u00a0insurability\u00a0and strengthen bankability, asset owners and developers can create a stronger basis for engagement with lenders,\u00a0insurers\u00a0and investors.\u00a0<\/p>\n
The scale of exposure underlines the need for action\u00a0<\/p>\n
Zurich\u2019s analysis shows that while resilience investment can materially reduce future losses, the scale of exposure across the renewable energy pipeline is significant.\u00a0<\/p>\n
USD 55 billion in renewable assets is exposed:\u00a0Zurich\u2019s analysis estimates that approximately USD 55 billion in renewable energy infrastructure across India could be at risk without effective resilience measures.\u00a0<\/p>\n
Exposure is widespread and intensifying:\u00a0By 2030, 66%\u00a0of the county\u2019s pipeline generation capacity is projected to sit in the top two risk bands,\u00a0Category 4 and 5.\u00a0<\/p>\n
Four hazards that pose greatest material risk:\u00a0Tornado, wildfire,\u00a0flood\u00a0and hail rank among the most material hazards across the assessed portfolio, each linked directly to loss drivers such as civil works damage, substation failure, module degradation, mounting system\u00a0damage\u00a0and prolonged operational disruption.\u00a0<\/p>\n
Solar carries the most pronounced near-term exposure:\u00a0Solar accounts for 593 of the 871 assessed sites and 182,286 MW of planned capacity,\u00a0representing\u00a0nearly 70%\u00a0of total assessed capacity.\u00a0<\/p>\n
Hydropower carries disproportionate financial exposure:\u00a0Although hydropower accounts for only 48 assessed sites, it contributes 40,188 MW of planned capacity. However, due to the significant costs involved in constructing the necessary civil infrastructure, it poses a high financial risk.\u00a0\u00a0<\/p>\n
Resilience must be built in from the start\u00a0<\/p>\n
Zurich\u2019s analysis shows that resilience measures are most effective when embedded during the design and construction phase, when engineering flexibility is greatest and costs are lower. Beyond reducing physical damage, resilient assets are also easier to insure, easier to finance and better positioned to deliver reliable long-term performance.\u00a0<\/p>\n
Mark Fletcher,\u00a0Head of Zurich Resilience Solutions, Asia Pacific, Zurich Insurance\u00a0said:\u00a0\u201cIndia\u2019s renewable energy pipeline is expanding at a pace and scale that few markets can match. Through our work with clients throughout the region on climate resilience and adaptation, we see that when climate resilience is built into projects early, while site\u00a0selection, engineering and planning decisions are still flexible, there is the opportunity to materially reduce potential losses for a relatively modest\u00a0upfront investment. This in-turn drives insurability and bankability, improving confidence for insurers,\u00a0lenders\u00a0and investors.\u201d\u00a0<\/p>\n
As the clean energy build-out accelerates, resilience must become a core part of how renewable energy projects are planned, financed,\u00a0insured\u00a0and\u00a0operated. The quality of project development will matter as much as the quantity of capacity installed. Embedding resilience from the start will be critical to protecting asset values,\u00a0maintaining\u00a0insurability\u00a0and ensuring the energy transition delivers reliable power and durable long-term returns.<\/p>\n
About Zurich Kotak General Insurance\u202f\u00a0<\/p>\n
Zurich Kotak General Insurance Company (India) Limited ((Zurich Kotak General Insurance) is a 70:30 joint venture between Zurich Insurance Group and Kotak Mahindra Bank. The company adopted its new name in August 2024, following Zurich Insurance Group\u2019s acquisition of a 70% stake in Kotak Mahindra General Insurance Company Limited.<\/p>\n
Originally established in 2015, Zurich Kotak has evolved into one of the youngest and fastest-growing non-life insurance firms in India. The company offers a comprehensive suite of non-life insurance products in Retail and Commercial segments designed to meet the evolving needs of individuals, families, and businesses. Backed by the global legacy of Zurich and the trusted brand of Kotak, the company is committed to building a modern, technology-driven insurance franchise that delivers reliable protection and long-term value, which supports India\u2019s growing insurance penetration and financial resilience.<\/p>\n
About Zurich Resilience Solutions<\/p>\n
Zurich Resilience Solutions is a global leader in risk management. We partner with businesses and communities to identify and quantify exposure to risk and drive adaptation strategies to help them go forward with confidence.\u00a0 Through everyday risks impacting infrastructure, people and property, to complex risks around climate change, supply chain and cybersecurity, our approach helps organizations to reduce losses and build resilience for the long-term. To learn more, visit ZurichResilience.com.<\/p>\n
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