Renewable Energy Expansion Saved India Rs 9.4 lakh Crore in Fuel Imports Since 2011: IEA Report

New Delhi, Nov 13 (KNN) India's expansion of renewable energy capacity helped avoid more than USD 100 billion (around Rs 9.4 lakh crore) in coal and natural gas import costs between 2011 and 2025, strengthening energy security and reducing dependence on imported fuels, according to an International Energy Agency (IEA) report.

The India Renewable Energy Market Report 2026 estimates that cumulative savings could reach nearly USD 240 billion (Rs 22.6 lakh crore) by 2030, assuming international fuel prices remain broadly at their 2024-25 average levels. Annual savings could rise to around USD 35 billion (Rs 3.3 lakh crore), exceeding India's FY25 spending on non-coking coal and natural gas imports.

Without the solar, wind and bioenergy capacity added since 2010, India would have needed around 110 million tonnes of additional imported coal in 2025. Import dependence for electricity generation would have exceeded 30 per cent, nearly twice the actual level.

Renewable Capacity and Generation

India's renewable 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 and 38 GW of wind capacity, while bioenergy capacity reached nearly 12 GW.

India achieved 50 per cent of its installed electricity capacity from non-fossil sources in 2025, five years ahead of its 2030 target. The IEA ranked it the world's second-fastest-growing renewable energy market and second-largest solar PV module manufacturer.

Renewable sources generated over 500 terawatt-hours (TWh) in 2025, accounting for one-fourth of electricity supply. Generation is projected to approach 950 TWh, or 35 per cent of supply, by 2030.

Total renewable capacity is expected to reach around 530 GW by 2030, including more than 350 GW of solar, nearly 90 GW of wind and 75 GW of hydropower.

Lower Costs and Domestic Manufacturing

The IEA attributed the expansion to policy support and competitive auctions. India has awarded over 220 GW of utility-scale renewable capacity through bidding since 2010. Solar PV generation costs stand at USD 30-35 per megawatt-hour, among the world's lowest, while tariffs for projects commissioned in 2025 were around 40 per cent below the average cost of coal-based electricity.

PM Surya Ghar: Muft Bijli Yojana and PM-KUSUM have supported rooftop solar, solar-powered irrigation pumps and agricultural feeder solarisation. The Production Linked Incentive (PLI) scheme and domestic sourcing requirements have also attracted investment in solar manufacturing.

Annual solar module manufacturing capacity reached around 225 GW in September 2026. India is also expanding wind equipment manufacturing and is projected to become the world's second-largest manufacturer by 2030.

Bioenergy and Transport

Liquid biofuel production increased sixfold between 2020 and 2025, with consumption reaching around 11 billion litres in 2025 and projected to rise to 16 billion litres by 2030. Domestic biofuel use reduced crude oil import dependence by around four percentage points in 2025.

Compressed biogas could further reduce dependence on imported natural gas. India's sustainable feedstock potential could support production equivalent to 75 billion cubic metres annually, while natural gas import dependence is projected to rise from 52 per cent in 2024 to around 71 per cent by 2030.

Infrastructure and Policy Challenges

The IEA said sustaining growth would require faster transmission expansion, greater investment in energy storage, improved forecasting and dispatch, and more flexibility in the power system.

Improving distribution company finances, facilitating land acquisition, streamlining approvals and reducing project delays would also be essential to investor confidence and renewable project execution.

Addressing these challenges could accelerate renewable power capacity deployment during 2026-30 by more than 20 per cent. The report also called for stronger, more efficient and sustainable feedstock supply chains to expand biogas, biofuel and solid bioenergy.

(KNN Bureau)