Over the past three decades, India has experienced more than 400 extreme weather events. Its power sector, spanning thermal plants, solar parks, wind installations, and transmission infrastructure, faces escalating physical risk across every layer of the value chain. Yet most existing climate risk tools stop at hazard identification, offering qualitative ratings rather than quantified operational or financial impact.

CRAF is designed to close that gap. Developed by Climate Policy Initiative India, the framework applies a seven-stage methodology to produce district-level hazard indices, asset-specific vulnerability scores, and Expected Annual Loss (EAL) and Energy Not Served (ENS) estimates calibrated to Indian power sector conditions. It is intended to serve as the sector-specific analytical layer between India’s forthcoming National Adaptation Plan and the granular outputs required by investment and planning decisions.

The framework is relevant across the power sector value chain, for project developers integrating climate projections into site selection and engineering design, financiers translating physical hazard data into credit and portfolio risk metrics, insurers developing forward-looking actuarial models, and EPC contractors specifying climate-resilient infrastructure.

An upcoming technical brief will apply the methodology at the district scale across India’s power sector asset base, using climate hazard datasets, sample asset models, and vulnerability parameters described in this paper.

We welcome stakeholder inputs on our methodology. Please reach out to the authors or the contacts in the paper.

DOWNLOAD THE PAPER HERE