New Delhi, Nov. 11 -- 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.
Published by HT Digital Content Services with permission from Millennium Post.