Renewables save India $100 billion in fuel imports

iStock https://economictimes.indiatimes.com/news/india/clean-energy-gains-fail-to-lift-indias-climate-ranking/articleshow/135747442.cms 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 while reducing dependence on overseas fuel supplies, according to a report by the International Energy Agency (IEA). The savings from solar, wind and bioenergy generation could more than double by the end of the decade as India continues to add renewable power capacity, the IEA said in its India Renewable Energy Market Report 2026. Also Read: India's net-zero transition aim by 2070 offers $22.7 tn investment opportunity for global capital Cumulative savings on coal and natural gas imports could reach nearly $240 billion by 2030, equivalent to around Rs 22.6 lakh crore, the report estimated. The projection assumes international fuel prices remain broadly at their 2024-25 average levels. Live Events Annual savings could climb to around $35 billion, or Rs 3.3 lakh crore, by 2030. This would be higher than India's total expenditure on non-coking coal and natural gas imports in FY25, according to the IEA. The scale of avoided imports also highlights how renewable energy is changing India's dependence on fossil fuels. Without the solar, wind and bioenergy capacity installed since 2010, the country would have needed to import an additional 110 million tonnes of coal in 2025 alone, the report said. 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 stood at nearly 12 GW by September 2026. The IEA ranked India as the world's second-fastest-growing renewable energy market and the second-largest manufacturer of solar panels. The country also reached a significant milestone in 2025, when non-fossil fuel sources accounted for 50% of its installed electricity capacity, achieving its 2030 target five years ahead of schedule. The report attributed the expansion to sustained government policy support, ambitious renewable energy targets and long-term planning. Competitive bidding has also helped bring down the cost of renewable power. Also Read: Clean energy gains fail to lift India's climate ranking Solar tariffs for projects commissioned in 2025 were around 40% lower than the average cost of coal-based electricity, the IEA said. Government schemes have also helped widen the adoption of renewable energy beyond large power projects. The PM Surya Ghar: Muft Bijli Yojana has encouraged households to install rooftop solar systems, allowing them to generate electricity and lower their power bills. The PM-KUSUM scheme, meanwhile, has supported the deployment of solar-powered irrigation pumps and the supply of solar electricity to agricultural consumers. The government has also sought to strengthen domestic manufacturing through Production Linked Incentive (PLI) schemes and policies promoting locally manufactured solar equipment. These measures have helped attract investments into India's solar manufacturing ecosystem. With renewable capacity continuing to expand, the savings from avoided fossil fuel imports could become an increasingly important economic dividend for India, alongside lower exposure to international fuel price volatility. Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on India renewable energy International Energy Agency renewable energy expansion savings on fuel imports energy security solar PV capacity wind energy in India coal and natural gas imports (Catch all the Business News , Breaking News and Latest News Updates on The Economic Times .) Subscribe to The Economic Times Prime and read the ET ePaper online. ... more less (You can now subscribe to our Economic Times WhatsApp channel ) Read More News on India renewable energy International Energy Agency renewable energy expansion savings on fuel imports energy security solar PV capacity wind energy in India coal and natural gas imports (Catch all the Business News , Breaking News and Latest News Updates on The Economic Times .) Subscribe to The Economic Times Prime and read the ET ePaper online. ... more less