India's clean energy push may cut fuel import bill by $240 billion: IEA

India's shift towards renewable energy could help it save billions on fuel imports, while making the country less dependent on global energy markets. The transition could bring cumulative savings of nearly $240 billion on coal and natural gas imports by 2030, according to the International Energy Agency (IEA). As India expands its clean energy capacity, the benefits are going beyond sustainability. The move is also strengthening the country's energy security and economic resilience. IEA executive director Fatih Birol said India's experience could offer useful lessons for other emerging economies looking to expand renewable energy.

In a post on X, Birol said India's renewable energy expansion was helping the country deal with uncertainty in global energy markets by reducing its dependence on imported fossil fuels. "India's renewables expansion is delivering major energy security benefits amid heightened uncertainty in global energy markets," Birol said. He added that India's experience demonstrated "how consistent policies can help drive down renewable energy costs and attract investment, offering valuable lessons for other emerging economies". Birol was responding to a post by Union minister for new and renewable energy Prahlad Joshi, who highlighted the economic benefits of India's renewable energy transition. Joshi said the shift was not just about making energy cleaner. It was also strengthening India's energy security and economic resilience by reducing import dependence and conserving foreign exchange.

The minister shared an report on the IEA's India Renewable Energy Market Report 2026, which estimated that India's cumulative savings on coal and natural gas imports could approach $240 billion by 2030. This projection assumes that fuel prices remain broadly in line with their 2024-25 averages. The savings are also expected to make a significant difference to India's annual import bill. The report projected that annual savings on fossil fuel imports could reach around $35 billion by 2030. This would be higher than the country's actual non-coking coal and natural gas import bill in FY 2024-25. Solar and wind power are expected to account for most of these savings. Solar photovoltaic power could contribute nearly 60 per cent of the projected cumulative savings, while wind power could account for almost 30 per cent.

India's renewable energy capacity could reach around 530 GW by 2030, according to the IEA's projections. Solar power is expected to drive much of this growth, with its capacity projected to exceed 350 GW. However, generating more renewable electricity is only part of the task. The agency has highlighted the need for continued investment in transmission infrastructure, energy storage and power system flexibility to accommodate the growing share of renewable electricity. Birol's remarks highlight how India's clean energy expansion is helping strengthen energy security while offering the possibility of substantial savings on fuel imports. The country's experience with consistent policies, lower renewable energy costs and investment could also provide useful lessons for other emerging economies.