Mumbai, Nov. 10 -- India's expanding renewable energy capacity could help the country save nearly USD 240 bn in cumulative coal and natural gas import expenditure by 2030, strengthening energy security and reducing exposure to international fuel price volatility, according to the International Energy Agency (IEA).

In its India Renewable Energy Market Report 2026, the agency said renewable electricity had already reduced cumulative spending on coal and natural gas imports by more than USD 100 bn between 2011 and 2025. Assuming fuel prices remain broadly consistent with average levels recorded in 2024 and 2025, cumulative savings could approach USD 240 bn by 2030.

Annual fossil fuel import savings are projected to reach around USD 35 bn by 2030, exceeding India's actual non-coking coal and natural gas import bill in FY25. Solar photovoltaic power is expected to account for approximately 60 per cent of the cumulative savings, while wind power is projected to contribute almost 30 per cent.

The IEA said renewable expansion had already reduced India's dependence on imported coal. Without the solar photovoltaic, wind and bioenergy capacity added since 2010, coal imports in 2025 would have been around 110 mn t higher, while the import dependence of electricity generation would have exceeded 30 per cent, approximately twice the actual level.

India's renewable power capacity is expected to reach around 530 GW by 2030, led by solar photovoltaic capacity of more than 350 GW. Wind capacity is expected to approach 90 GW and hydropower capacity could reach 75 GW. Renewable energy is also projected to provide 35 per cent of electricity generation, with output approaching 950 terawatt-hours (TWh), nearly double current levels. The agency said continued investment in transmission infrastructure, energy storage and power system flexibility would be important to manage the increasing share of variable renewable energy and limit the impact of supply disruptions and fossil fuel price spikes.

Published by HT Digital Content Services with permission from Construction World.