India’s rapid renewables growth is strengthening its role in global energy markets, IEA report finds

India is emerging as an increasingly important force in global renewable energy markets, with its rapid expansion of renewable electricity helping reduce reliance on imported fuels while opening new opportunities in manufacturing, according to a new IEA report.

Launched today at the Bharat Renewable Energy Summit in New Delhi, the India Renewable Energy Market Report 2026 finds that India’s renewable power capacity has almost quadrupled over the past decade, surpassing 300 gigawatts (GW) in 2026. The country is now the world’s second-fastest-growing renewables market and second-largest manufacturer of solar photovoltaic (PV) modules. India also reached its target of 50% non-fossil installed power capacity in 2025, five years ahead of schedule.

The report finds India’s renewables expansion is already delivering substantial energy security benefits. Renewable electricity saved India more than USD 100 billion in coal and natural gas import costs between 2011 and 2025, with cumulative savings expected to more than double by 2030. Without the solar PV, wind and bioenergy capacity added since 2010, India’s coal imports in 2025 would have been around 110 million tonnes higher.

By 2030, India’s renewable power capacity is forecast to reach around 530 GW, with solar PV accounting for more than 80% of new additions and putting the country on track to meet its target of non-fossil power capacity.

“India’s renewables expansion is delivering major benefits for its energy security at a time of heightened uncertainty in global energy markets,” said IEA Executive Director Fatih Birol. “As countries look to strengthen domestic energy supplies, India’s experience shows how consistent policies can help drive down renewable energy costs and attract investment, offering valuable lessons for other emerging economies. We look forward to supporting India as it builds on these achievements.”

“India’s emergence as a new giant of renewable energy reflects the progress we have made in recent years,” said India Minister of New and Renewable Energy Pralhad Joshi. “As India’s electricity needs continue to rise, we are laying the foundations for the next phase of growth by strengthening domestic manufacturing, mobilising investment and expanding transmission infrastructure. We appreciate the IEA’s continued engagement with India on our shared pursuit of a secure, affordable and sustainable energy future.”

The report highlights how competitive auctions have helped India achieve some of the world’s lowest solar PV generation costs and become a global leader in procuring hybrid renewable projects. Growth is also spreading beyond large power plants, supported by rooftop solar, corporate electricity procurement and expanding domestic manufacturing.

However, sustaining this expansion will require faster investment in electricity grids, storage and system flexibility, alongside stronger utility finances and fewer project delays. Addressing these challenges could accelerate renewable power capacity deployment by more than 20% over 2026-2030, the report finds.