National
ETV Bharat / business
By PTI
Published : November 11, 2026 at 9:06 PM IST
New Delhi: India’s rapid expansion of renewable energy has helped the country avoid more than USD 100 billion (about Rs 9.4 lakh crore) in coal and natural gas import costs between 2011 and 2025, with cumulative savings projected to rise to nearly USD 240 billion (Rs 22.6 lakh crore) by 2030, according to a new report by the International Energy Agency (IEA).
The findings underline the growing economic and energy-security dividends of India’s renewable energy transition, with increased domestic electricity generation reducing exposure to imported fossil fuels and volatility in international energy markets.
The IEA’s India Renewable Energy Market Report 2026, released on November 3, estimates that without the solar photovoltaic (PV), wind and bioenergy capacity added since 2010, India’s coal imports in 2025 alone would have been around 110 million tonnes higher. The country’s dependence on imported fuels for electricity generation would also have exceeded 30 per cent, approximately twice the actual level.
The agency projects annual savings on coal and natural gas imports could reach approximately USD 35 billion (Rs 3.3 lakh crore) by 2030, exceeding India’s actual expenditure on non-coking coal and natural gas imports in FY2024-25. The projections assume international fuel prices remain broadly around their 2024-25 average levels.
The estimates highlight how renewable energy is increasingly contributing not just to India’s climate commitments but also to its external-sector resilience, by reducing the foreign exchange required to meet the country’s growing electricity demand.
India’s renewable power capacity has almost quadrupled over the past decade, crossing 300 gigawatts (GW) in 2026, making it the world’s second-fastest-growing renewable energy market, the IEA said.
According to government data, as of September 30, 2026, India’s total renewable energy capacity, including large hydropower, stood at approximately 299.25 GW. This included 171.05 GW of solar power and 59.2 GW of wind capacity. Total non-fossil electricity capacity, including nuclear power, had reached approximately 308 GW.
Between March 2014 and September 2026, India added around 168 GW of solar capacity and 38 GW of wind capacity, reflecting the acceleration in renewable energy deployment over the period.
The country also achieved its target of sourcing 50 per cent of installed electricity capacity from non-fossil fuel sources in 2025, five years ahead of its 2030 deadline under its climate commitments.
Renewable electricity generation has expanded alongside installed capacity. The IEA estimates that renewables generated more than 500 terawatt-hours (TWh) of electricity in 2025, accounting for around a quarter of India’s total electricity supply.
By 2030, renewable electricity generation is projected to approach 950 TWh, equivalent to around 35 per cent of the country’s power supply.
Solar PV is expected to account for more than 80 per cent of India’s renewable capacity additions through 2030, with installed solar capacity projected to exceed 350 GW. Overall renewable power capacity is forecast to reach approximately 530 GW.
The IEA noted that competitive auctions have helped India achieve some of the world’s lowest solar generation costs. Tariffs for solar PV projects commissioned in 2025 were around 40 per cent below the average cost of coal-fired electricity.
India has also emerged as the world’s second-largest manufacturer of solar PV modules, with domestic manufacturing capacity expanding rapidly on the back of government incentives, including the Production Linked Incentive (PLI) scheme and domestic sourcing policies.
The expansion of domestic manufacturing is also strategically significant, as India seeks to diversify global clean-energy supply chains and reduce dependence on imported solar equipment, particularly from China.
The IEA report highlights the role of government programmes in extending renewable energy beyond large utility-scale projects to households and agriculture.
The PM Surya Ghar: Muft Bijli Yojana is helping accelerate residential rooftop solar installations, enabling households to generate electricity for their own consumption and reduce dependence on grid power.
Similarly, the PM-KUSUM scheme is supporting the deployment of solar-powered irrigation pumps and the solarisation of agricultural electricity supply, helping reduce the dependence of farmers on conventional power sources.
These initiatives are complementing large-scale solar and wind projects by expanding decentralised generation and creating opportunities for households, farmers and businesses to participate in the energy transition.
While the IEA sees substantial scope for further renewable energy expansion, it cautions that the next phase will require significant investment in electricity transmission, energy storage and power-system flexibility.
The increasing share of intermittent solar and wind generation will require stronger grid infrastructure, better forecasting and dispatch systems, and greater storage capacity to ensure reliable electricity supply.
The agency also identifies the financial health of electricity distribution companies, land acquisition constraints, permitting delays and project execution challenges as important factors that could affect the pace of deployment.
Addressing these bottlenecks could accelerate renewable power capacity additions by more than 20 per cent over 2026-2030, the report estimates.
“India’s renewables expansion is delivering major benefits for its energy security at a time of heightened uncertainty in global energy markets,” IEA Executive Director Fatih Birol said.
He added that India’s experience demonstrated how consistent policies could help drive down renewable energy costs and attract investment, offering valuable lessons for other emerging economies.
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