NEW DELHI: Expansion of renewable energy (RE) capacity over the past 15 years helped India save more than $100 billion in coal and natural gas import costs, the International Energy Agency (IEA) has said in a recent report.With 300GW of RE capacity, India has emerged as the world’s second-fastest-growing renewables market, strengthening its energy security, the report said. India added 168GW of solar and 38GW of wind capacity between March 2014 and Sept 2026, while installed bioenergy capacity reached nearly 12GW. With RE capacity expected to reach 530GW by 2030, IEA estimated that cumulative savings on coal and natural gas imports could reach $240 billion by 2030, assuming international fuel prices remain broadly at their 2024-25 average levels. Annual savings are projected to reach around $35 billion by then, exceeding India’s entire spending on non-coking coal and natural gas imports in FY25.The India Renewable Energy Market Report 2026 estimated that 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.
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“India’s experience shows how consistent policies can help drive down renewable energy costs and attract investment, offering valuable lessons for other emerging economies,” said IEA executive director Fatih Birol. India achieved its target of sourcing 50% of installed electricity capacity from non-fossil fuel sources in 2025, five years ahead of schedule.IEA said the growth extended beyond large plants, supported by rooftop solar installations, corporate RE procurement and expansion of domestic manufacturing facilities. It specifically highlighted the PM Surya Ghar Muft Bijli Yojana for accelerating rooftop solar installations and PM-KUSUM for supporting solar-powered irrigation pumps and farm feeders.