India's renewable energy expansion averts US$ 100 billion in fuel imports; savings projected at US$ 240 billion by 2030
- IBEF
- November 12, 2026
India's rapid expansion of renewable energy has helped avert more than Rs. 8.65 lakh crore (US$ 100 billion) in coal and natural gas import costs between 2011 and 2025, with cumulative savings projected to reach nearly Rs. 22.81 lakh crore (US$ 240 billion) by 2030, according to the International Energy Agency's (IEA) India Renewable Energy Market Report 2026. The report, released on November 3, 2026, highlights the growing contribution of renewable energy to India's energy security and external-sector resilience. 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%, approximately twice the actual level. Annual savings on coal and natural gas imports are projected to reach around Rs. 3.33 lakh crore (US$ 35 billion) by 2030, assuming international fuel prices remain broadly at their 2024-25 average levels.
India's total renewable energy capacity, including large hydropower, stood at approximately 299.25 GW as of September 30, 2026, comprising 171.05 GW of solar and 59.2 GW of wind capacity. Renewable sources generated more than 500 terawatt-hours (TWh) of electricity in 2025, accounting for around one-fourth of India's total electricity supply. This is projected to increase to nearly 950 TWh by 2030, meeting around 35% of the country's power demand. Solar PV is expected to account for more than 80% of renewable capacity additions through 2030, with installed solar capacity projected to exceed 350 GW. Government initiatives, including the PM Surya Ghar: Muft Bijli Yojana, PM-KUSUM and the Production Linked Incentive (PLI) scheme, are supporting renewable energy adoption and domestic manufacturing. The IEA has also highlighted the need for greater investment in transmission infrastructure, energy storage and grid flexibility to sustain the sector's growth.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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