India’s expansion of renewable energy capacity helped the country avoid more than ₹9.4 lakh crore in coal and natural gas import costs between 2011 and 2025, according to a report by the International Energy Agency (IEA). The savings could rise to ₹22.6 lakh crore cumulatively by 2030 as solar and wind capacity continues to expand.
The findings highlight the growing contribution of solar, wind and bioenergy to India’s energy security and its efforts to reduce dependence on imported fossil fuels.
The IEA report noted that India added 168 GW of solar power capacity and 38 GW of wind power capacity between March 2014 and September 2026. Bioenergy capacity also reached nearly 12 GW by September 2026. The agency estimated that without the renewable energy capacity added since 2010, India would have needed around 110 million tonnes of additional imported coal in 2025 alone.
The potential savings are expected to increase substantially over the coming years. Assuming international fuel prices remain broadly in line with their 2024-25 averages, cumulative savings on coal and natural gas imports could reach approximately ₹22.6 lakh crore by 2030. Annual savings could rise to around ₹3.3 lakh crore by that year, exceeding India’s total expenditure on non-coking coal and natural gas imports in FY25.
Renewable Energy Capacity Crosses 300 GW
India’s renewable power capacity has almost quadrupled over the past decade, crossing 300 GW in 2026. The IEA identified India as the world’s second-fastest-growing renewable energy market and the second-largest manufacturer of solar panels.
The country also achieved 50 per cent of its installed electricity capacity from non-fossil fuel sources in 2025, meeting its 2030 target five years ahead of schedule. The report attributed this progress to sustained policy support, ambitious renewable energy targets and long-term planning.
Competitive bidding has played an important role in reducing the cost of solar electricity. According to the IEA, tariffs for solar projects commissioned in 2025 were around 40 per cent below the average cost of coal-based electricity.
Government Schemes Support Renewable Energy Expansion
The report highlighted the role of government initiatives in extending renewable energy benefits beyond large power projects.
The PM-KUSUM scheme is helping bring solar energy into agriculture by supporting solar-powered irrigation pumps and electricity supply to farms. The initiative aims to reduce dependence on conventional electricity and diesel-powered irrigation systems.
The IEA also noted that Production Linked Incentive (PLI) schemes and policies promoting domestically manufactured equipment have attracted investment in India’s solar manufacturing industry. These measures are supporting domestic production capacity and strengthening the country’s renewable energy supply chain.
India’s renewable energy expansion is delivering benefits beyond cleaner electricity, particularly through reduced dependence on imported coal and natural gas. With potential cumulative import savings of ₹22.6 lakh crore by 2030, continued investment in solar, wind, bioenergy and domestic manufacturing could further strengthen the country’s energy security.
