India’s growing renewable energy capacity has helped the country avoid more than $100 billion in coal and natural gas import costs between 2011 and 2025, strengthening its energy security and reducing dependence on overseas fuel supplies, according to a report by the International Energy Agency (IEA), ANI reported.
The IEA’s India Renewable Energy Market Report 2026 estimates that renewable electricity generation helped India save more than $100 billion, equivalent to around Rs 9.4 lakh crore, in fuel import expenses over the 15-year period.
The savings are expected to increase as the country expands its solar, wind and bioenergy capacity. Cumulative savings on coal and gas imports could reach nearly $240 billion, or around Rs 22.6 lakh crore, by 2030, assuming international fuel prices remain broadly at their 2024-25 average levels.
Annual savings from renewable energy could reach approximately $35 billion, equivalent to Rs 3.3 lakh crore, by 2030. This would exceed India’s total expenditure on non-coking coal and natural gas imports in FY2024-25, the report estimates.
Renewables reduce coal import dependence
The IEA said the expansion of renewable energy has also reduced India’s reliance on imported coal. Without the solar, wind and bioenergy capacity added since 2010, India would have required around 110 million tonnes of additional imported coal in 2025 alone.
India’s renewable energy capacity has nearly quadrupled over the past decade, crossing 300 GW in 2026. Between March 2014 and September 2026, the country added 168 GW of solar capacity and 38 GW of wind capacity. Bioenergy capacity reached nearly 12 GW by September 2026.
The report identified India as the world’s second-fastest-growing renewable energy market and the second-largest manufacturer of solar panels.
India also achieved 50% of its installed electricity capacity from non-fossil fuel sources in 2025, meeting its 2030 target five years ahead of schedule.
Policy support drives renewable energy growth
The IEA attributed the progress to sustained policy support, ambitious targets and long-term planning. Competitive bidding has also helped bring down renewable energy costs.
Tariffs for solar projects commissioned in 2025 were around 40% lower than the average cost of coal-based electricity, according to the report.
Government programmes such as PM Surya Ghar: Muft Bijli Yojana have encouraged rooftop solar installations, enabling households to generate their own electricity and reduce power bills.
The PM-KUSUM scheme has supported the adoption of solar-powered irrigation pumps and electricity supply to agricultural consumers.
The report also highlighted Production Linked Incentive (PLI) schemes and policies promoting domestically manufactured solar equipment. These initiatives have helped attract investment in India’s solar manufacturing sector.
The IEA said continued growth in renewable energy could further reduce India’s exposure to international fuel price fluctuations while improving energy security and lowering import expenditure, according to ANI.
