THEBUSINESSBYTES BUREAU

NEW DELHI, NOVEMBER 11, 2026

India's accelerating renewable energy expansion has helped the country avert 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 surge to nearly USD 240 billion (Rs 22.6 lakh crore) by 2030, according to a report by the International Energy Agency (IEA).

The findings highlight the growing economic and strategic benefits of India's clean energy transition, with rising domestic renewable power generation reducing dependence on imported fossil fuels, saving precious foreign exchange and insulating the economy from volatility in international energy markets.

In its India Renewable Energy Market Report 2026, released on November 3, the IEA said that in the absence of 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 reliance on imported fuels for electricity generation would also have exceeded 30 per cent, nearly twice the actual level.

The agency estimates that annual savings on coal and natural gas imports could reach around USD 35 billion (Rs 3.3 lakh crore) by 2030, surpassing India's actual expenditure on non-coking coal and natural gas imports in FY2024-25. The projection assumes international fuel prices remain broadly at their 2024-25 average levels.

The report underscores how renewable energy is emerging as a key pillar of India's energy security and economic resilience, beyond its contribution to climate commitments.

India's renewable power capacity has nearly quadrupled over the past decade, crossing the 300-gigawatt (GW) mark in 2026 and making the country the world's second-fastest-growing renewable energy market, the IEA said.

According to government data, India's total renewable energy capacity, including large hydropower, stood at around 299.25 GW as of September 30, 2026. Solar power accounted for 171.05 GW, while wind energy contributed 59.2 GW. The country's total non-fossil electricity capacity, including nuclear power, had reached approximately 308 GW.

Between March 2014 and September 2026, India added nearly 168 GW of solar capacity and 38 GW of wind capacity, reflecting the sharp acceleration in clean energy deployment.

India also achieved its target of sourcing 50 per cent of installed electricity capacity from non-fossil fuel sources in 2025, five years ahead of the 2030 deadline set under its climate commitments.

The growth in installed capacity has been accompanied by a significant rise in renewable electricity generation. Renewables generated more than 500 terawatt-hours (TWh) of electricity in 2025, accounting for around a quarter of India's total power supply, the IEA estimated.

By 2030, renewable electricity generation is expected to approach 950 TWh, meeting around 35 per cent of the country's electricity requirements.

Solar power is set to remain the principal driver of this expansion, accounting for more than 80 per cent of renewable capacity additions through 2030. India's installed solar capacity is projected to exceed 350 GW, while overall renewable power capacity could reach approximately 530 GW.

The IEA attributed India's competitive renewable energy costs to transparent and competitive bidding mechanisms, which have helped deliver some of the world's lowest solar power tariffs. Solar PV projects commissioned in 2025 had tariffs around 40 per cent below the average cost of coal-fired electricity.

India has also strengthened its position in the global clean energy manufacturing landscape, emerging as the world's second-largest producer of solar PV modules. Domestic manufacturing capacity has expanded rapidly, supported by government incentives such as the Production Linked Incentive (PLI) scheme and policies promoting domestic sourcing.

The expansion is strategically important as India seeks to diversify global clean energy supply chains and reduce its dependence on imported solar equipment, particularly from China.

Government initiatives are also taking renewable energy beyond large utility-scale projects, extending its benefits to households and the agricultural sector.

The PM Surya Ghar: Muft Bijli Yojana is encouraging residential rooftop solar installations, enabling households to generate electricity for their own consumption and lower their dependence on grid power.

Similarly, the PM-KUSUM scheme is promoting solar-powered irrigation pumps and the solarisation of agricultural electricity supply, helping farmers reduce their reliance on conventional power sources.

Together, these programmes are expanding decentralised electricity generation and creating opportunities for households, farmers and businesses to participate in the country's clean energy transformation.

However, the IEA cautioned that sustaining the momentum would require substantial investments in electricity transmission networks, energy storage systems and power-grid flexibility.

With solar and wind generation accounting for an increasing share of the electricity mix, stronger transmission infrastructure, improved forecasting and dispatch mechanisms, and adequate storage capacity will be crucial to maintaining grid stability and ensuring uninterrupted power supply.

The agency also flagged the financial health of electricity distribution companies, land acquisition hurdles, permitting delays and project execution constraints as key challenges that could impede the pace of renewable energy deployment.

Removing these bottlenecks could accelerate renewable power capacity additions by more than 20 per cent during 2026-2030, the report estimated.

"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 said India's experience demonstrated how consistent policy support could bring down renewable energy costs and attract investments, offering valuable lessons for other emerging economies.

The report's findings reinforce the growing role of renewable energy in India's economic strategy, where the transition to cleaner power is increasingly translating into tangible gains in import savings, energy independence, domestic manufacturing and long-term economic competitiveness.