India’s Renewables Have Saved $100 Billion in Fuel Imports, IEA Says | OilPrice.com
Haley Zaremba
Haley Zaremba is an energy journalist and researcher with more than a decade of professional experience covering global energy systems, land and natural resources, and…
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By Haley Zaremba – Nov 05, 2026, 4:00 PM CST
- Renewables saved India more than $100 billion in coal and gas import costs from 2011 to 2025, and the IEA expects cumulative savings to more than double by 2030.
- Without the solar, wind and bioenergy added since 2010, India would have imported about 110 million more tonnes of coal in 2025, a gap that matters more after the Hormuz energy shock.
- The IEA says grids, storage and utility finances must keep pace, while McKinsey puts Asia’s energy security bill at $1 trillion a year through 2040.
India’s clean energy growth is far surpassing expectations and quickly establishing the world’s most populous country as one of the major global players in clean energy markets. India is now the second-fastest-growing clean energy market in the world, and the world’s second-largest producer of solar panels, following China. And according to a new report from the International Energy Agency (IEA), the country’s embrace of clean energy as a key part of its economic development is already paying off.
The IEA’s India Renewable Energy Market Report 2026 finds that “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,” notes an IEA news article accompanying the report’s release. “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,” the article goes on to detail.
Those savings are likely to be even more significant for 2026, thanks to the extreme energy market turmoil introduced by the United States’ and Israel’s war in Iran. The energy shock driven by Iran’s closure of the Strait of Hormuz, a vital artery for the world’s oil and gas trade, caused increased global competition over scarce energy resources, causing prices to skyrocket. And no market was hit harder than Asia.
India’s investments in diversifying its energy mix and reducing its reliance on foreign energy imports in recent years shielded the country from much worse economic fallout, and have underlined the wisdom of renewable energy expansion as an energy security strategy in an era characterized by extreme geopolitical volatility. Around the world, countries are increasingly adopting clean energy agendas as a matter of national and energy security rather than due to climatic concerns. And India is now a poster child for the success of such an approach.
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“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.”
The future is bright for India’s clean energy sector. Highly competitive auctions have driven down solar photovoltaic manufacturing costs, and have allowed the country to emerge as a frontrunner in securing hybrid renewable projects. The IEA’s projections show that domestic consumption is set to continue to go gangbusters as well. After quadrupling its installed clean energy production capacity over the past decade, India is now on track to double the share of renewables in the national energy mix between now and 2030, reaching 35 percent.
However, India still has a long way to go toward meeting its energy security and sustainability goals. “Sustaining this expansion will require faster investment in electricity grids, storage and system flexibility, alongside stronger utility finances and fewer project delays,” the IEA states.
As a region, Asia needs massive investments in clean energy development over the coming years in order to shore up energy security and avoid the next major energy crisis. A new McKinsey & Company report published in October estimates that Asian nations will likely need to invest $1 trillion annually over the next 15 years to ensure energy security across the region. The consulting firm now forecasts that Asia’s energy demand will reach a whopping 370 million terajoules by 2040. This represents a 15 percent increase from last year’s forecasts, indicating the region’s breakneck pace of development, as well as the runaway energy needs of data centers, which are increasingly popping up around the continent.
By Haley Zaremba for Oilprice.com
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Haley Zaremba
Haley Zaremba is an energy journalist and researcher with more than a decade of professional experience covering global energy systems, land and natural resources, and…
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