New Delhi: India’s growing renewable-energy capacity helped the country save more than $100 billion (around ₹9.4 lakh crore) on coal and natural gas imports between 2011 and 2025, according to a report by the International Energy Agency. The agency said the savings could increase further as India expands its solar and wind power capacity over the next four years.
The findings were published in the IEA’s India Renewable Energy Market Report 2026, launched on November 3 at the Bharat Renewable Energy Summit in New Delhi. The report noted that renewable electricity would help reduce India’s dependence on imported fuels and improve energy security.
As per an estimate by IEA, in 2025, India would have required an additional 110 million tonnes of coal imports, in case there was no development of solar, wind, and bio energy facilities since 2010. This is evident from the above fact that renewable energy facilities have made contributions in reducing coal imports.
By 2030, the financial gains are expected to increase. The report said the cumulative savings on coal and natural gas imports could be around $240 billion (roughly ₹22.6 lakh crore) if international fuel prices remain close to average levels in 2024-25. Annual savings could also rise to approximately $35 billion (₹3.3 lakh crore) by the end of the decade.
India’s renewable capacity crosses 300 GW
India’s renewable power capacity has almost quadrupled over the past decade, crossing 300 GW in 2026, the IEA said. Between March 2014 and September 2026, the country added 168 GW of solar power and 38 GW of wind power. Installed bioenergy capacity also reached nearly 12 GW by September 2026.
The report identified India as the world’s second-fastest-growing renewable energy market and the second-largest manufacturer of solar photovoltaic (PV) modules.
India also achieved 50 per cent of its total installed electricity capacity from non-fossil fuel sources in 2025, five years ahead of its 2030 target.
The IEA expects India’s renewable power capacity to reach around 530 GW by 2030. Solar power is projected to account for more than 80 per cent of the additional capacity during this period.
Lower solar costs and manufacturing growth
The report credited competitive bidding for helping India achieve some of the world’s lowest solar power generation costs. Solar tariffs for projects commissioned in 2025 were around 40 per cent lower than the average cost of coal-based electricity.
The utilization of renewable energy is also increasing not only through big power stations but also through other sources such as rooftop solar projects. The PM Surya Ghar: Muft Bijli Yojana project has also helped people to adopt rooftop solar projects in order to produce electricity for themselves.
Speaking at the report’s launch, IEA executive director, Fatih Birol, said India’s renewable energy expansion was strengthening its energy security amid uncertainty in global energy markets. He said consistent government policies had helped lower renewable energy costs and attract investment, offering lessons for other emerging economies.
The Union minister for new and renewable energy, Pralhad Joshi, said India was preparing for the next phase of renewable energy growth by strengthening domestic manufacturing, attracting investment and expanding transmission infrastructure.
IEA flags challenges to further expansion
Despite the progress, the IEA said India would need to invest more rapidly in electricity grids, energy storage and systems that can manage changes in power supply. Improving the financial health of electricity distribution companies and reducing delays in renewable energy projects would also be important.
According to the report, addressing these challenges could increase renewable power capacity additions by more than 20 per cent between 2026 and 2030.
The IEA said these improvements would help India sustain its renewable energy growth while strengthening domestic energy supplies and creating opportunities in global clean energy markets.