New Delhi, Nov 11 — India's expansion of renewable energy capacity helped the country avoid over Rs 9.4 lakh crore in coal and natural gas import costs between 2011 and 2025, a report said on Wednesday.
The report from the International Energy Agency (IEA) said India added 168 GW of solar power capacity and 38 GW of wind power capacity between March 2014 and September 2026, while bioenergy capacity reached nearly 12 GW by September 2026.
The IEA estimated that without the renewable energy capacity added since 2010, India would have required around 110 million tonnes of additional imported coal in 2025 alone.
Cumulative coal and gas import savings could approach about Rs 22.6 lakh crore, by 2030, assuming international fuel prices remain broadly in line with 2024-25 averages. Annual savings could reach around Rs 3.3 lakh crore, by 2030, exceeding India’s entire spending on non-coking coal and natural gas imports in FY25.
India’s renewable power capacity has almost quadrupled over the past decade, crossing 300 GW in 2026. The report identified India as the world’s second-fastest-growing renewable energy market and second-largest manufacturer of solar panels.
India also achieved 50 per cent of its installed electricity capacity from non-fossil sources in 2025, meeting its 2030 target five years early. The report credited India’s progress to sustained policy support, ambitious goals and long-term planning.
Competitive bidding has helped India achieve some of the world’s lowest solar power costs. According to the IEA, tariffs for solar projects commissioned in 2025 were around 40 per cent below the average cost of coal-based electricity.
PM-KUSUM is extending the benefits to agriculture, the report said, highlighting the scheme’s support for solar-powered irrigation pumps and electricity supply to farms.
Production Linked Incentive schemes and policies encouraging Indian-made equipment have attracted investment in domestic solar manufacturing, the report noted.