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India's expanding renewable energy capacity could help the country save nearly USD 240 billion in cumulative coal and natural gas import expenditure by 2030, strengthening energy security and reducing exposure to international fuel price volatility, according to the International Energy Agency (IEA).
The savings are expected to increase as solar and wind power displace imported fossil fuels, with annual savings projected to reach around USD 35 billion by 2030, exceeding India's actual non-coking coal and natural gas import bill in the financial year 2024-25. In its 'India Renewable Energy Market Report 2026', the IEA said renewable electricity had already reduced cumulative spending on coal and natural gas imports by more than USD 100 billion between 2011 and 2025. "Assuming fuel prices remain broadly consistent with average levels observed during 2024-2025, cumulative savings could approach USD 240 billion by 2030," the agency said. Solar photovoltaic (PV) power is expected to account for the largest share of these savings, contributing approximately 60 per cent, while wind power is projected to contribute almost 30 per cent. "Annual fossil fuel import savings are projected to reach approximately USD 35 billion by 2030, exceeding India's actual non-coking coal and natural gas import bill in FY 2024-25," the report said. The agency highlighted that renewable energy expansion has already helped reduce India's dependence on imported coal. Without the solar PV, wind and bioenergy capacity added since 2010, coal imports in 2025 would have been around 110 million tonnes higher. "Without the solar PV, wind and bioenergy capacity added since 2010, coal imports in 2025 would have been around 110 million tonnes higher and the import dependence of electricity generation would have exceeded 30%, approximately twice the actual level," the IEA said. India's renewable power capacity is expected to reach around 530 GW by 2030, led by solar PV, which is projected to account for more than 350 GW. Wind capacity is expected to approach 90 GW, while hydropower capacity could reach 75 GW. Renewable energy is also expected to account for 35 per cent of India's electricity generation by 2030, with output approaching 950 terawatt-hours, nearly double current levels. However, the agency emphasised that continued investment in transmission infrastructure, energy storage and power system flexibility would be important to accommodate the growing share of variable renewable energy. "These buffers become particularly valuable when supply disruptions and price spikes put fossil fuel markets under strain," the report said. (ANI)
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