It is learnt that the increasing occurrence of extreme climate events like cyclones and heatwaves is driving up insurance costs for India’s wind energy sector, both for new and existing wind turbines. These rising risks have led wind energy project developers to seek innovative insurance solutions to mitigate potential financial losses.

The insurance premiums for wind turbines are escalating yearly due to the growing frequency of climate-related events. Concerned developers are increasingly turning to parametric insurance, also known as index-based insurance, for their wind energy projects. This type of insurance provides coverage for losses linked to specific weather conditions, such as insufficient wind, which can result in lost profits.