New Delhi: India's rapid expansion of renewable energy has helped save more than USD 100 billion in coal and natural gas import costs over the past 15 years, strengthening energy security while positioning the country as an increasingly important player in global clean energy markets, according to a new report by the International Energy Agency (IEA).
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 renewables market and the second-largest manufacturer of solar photovoltaic (PV) modules, the India Renewable Energy Market Report 2026 said.
Launched at the Bharat Renewable Energy Summit, the report said India achieved its target of 50 per cent non-fossil fuel-based installed power capacity in 2025, five years ahead of schedule.
The expansion is also delivering measurable economic and energy security benefits. Renewable electricity generation helped India avoid more than USD 100 billion in coal and natural gas import costs between 2011 and 2025. Cumulative savings are expected to more than double by 2030.
The impact on coal imports has been particularly significant. Without the solar PV, wind and bioenergy capacity added since 2010, India's coal imports in 2025 would have been around 110 million tonnes higher, the IEA estimated.
The agency expects India's renewable power capacity to reach approximately 530 GW by 2030, with solar PV accounting for more than 80 per cent of additions. The expansion would further strengthen the country's non-fossil power capacity base, although meeting its longer-term ambitions will require continued investment in supporting infrastructure.
"India's renewables expansion is delivering major benefits for its energy security at a time of heightened uncertainty in global energy markets," said IEA Executive Director Fatih Birol.
"As countries look to strengthen domestic energy supplies, India's experience shows how consistent policies can help drive down renewable energy costs and attract investment, offering valuable lessons for other emerging economies. We look forward to supporting India as it builds on these achievements," he added.
Union Minister for New and Renewable Energy Pralhad Joshi said the country's growing renewable energy capacity reflected progress in recent years, while rising electricity demand would require a further strengthening of domestic manufacturing, investment and transmission infrastructure.
"India's emergence as a new giant of renewable energy reflects the progress we have made in recent years," Joshi said.
"As India's electricity needs continue to rise, we are laying the foundations for the next phase of growth by strengthening domestic manufacturing, mobilising investment and expanding transmission infrastructure.
"We appreciate the IEA's continued engagement with India on our shared pursuit of a secure, affordable and sustainable energy future," he added. Beyond reducing dependence on imported fossil fuels, India's renewable energy expansion is creating opportunities to strengthen domestic manufacturing and diversify global clean energy supply chains, particularly in solar PV.
The IEA report attributes the country's rapid deployment of renewable capacity partly to competitive auctions, which have helped secure some of the world's lowest solar PV generation costs. India has also emerged as a global leader in procuring hybrid renewable energy projects, combining different renewable sources to improve the reliability of electricity supply.
Growth is increasingly extending beyond large utility-scale projects, supported by rooftop solar installations, corporate renewable electricity procurement and the expansion of domestic manufacturing capacity.
The developments could help India strengthen its position in global solar manufacturing while reducing exposure to concentrated international supply chains. However, translating manufacturing growth into a durable competitive advantage will depend on the industry's ability to scale production and remain cost-competitive.
Despite strong expansion, the next phase of India's renewable energy transition will depend increasingly on its ability to integrate intermittent renewable generation into the electricity system.
The IEA identified inadequate grid infrastructure, limited energy storage and insufficient system flexibility, alongside the financial health of electricity distribution utilities and project execution delays, as key challenges that could constrain deployment.
Faster investment in transmission networks, storage capacity and system flexibility, together with improvements in utility finances and fewer project delays, could accelerate renewable power capacity deployment by more than 20 percent during 2026-2030, the report estimated.
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