India’s ambitious renewable energy push could transform its energy landscape and bolster economic savings, according to a recent report by Climate Risks Horizon. The report suggests that adding 50 gigawatts of renewable energy annually could eliminate India’s dependence on thermal coal imports by 2029. This move is projected to save approximately USD 66 billion in foreign exchange between 2025 and 2029 alone, with total savings potentially reaching USD 173 billion by 2034.
Currently, India’s electricity sector heavily relies on imported coal, with around 20% (206 million tonnes) imported in 2023-24 at a cost of USD 21 billion. Over the past decade, thermal coal imports have surged by 58%, driven by increasing electricity demand during summer months and fluctuating global prices exacerbated by currency fluctuations.
The report underscores the risks associated with India’s coal dependency, including vulnerability to supply disruptions and financial instability due to volatile energy prices. It highlights that as India’s energy demand continues to rise due to urbanization, industrial growth, and technological advancements, the need for a robust renewable energy strategy becomes paramount.
India has set ambitious targets to achieve 500 gigawatts of non-fossil fuel energy capacity by 2030, with plans to add 50 gigawatts of renewable energy annually until 2027-28. Currently, the country has approximately 151 gigawatts of renewable energy from solar and wind sources, complemented by hydro, small-hydro, and biogas capacities. In the fiscal year 2024-25 alone, India added a record 24 gigawatts of renewable energy, marking significant progress towards its renewable energy goals.
By accelerating renewable energy expansion, India not only aims to reduce coal imports but also to enhance energy security, mitigate climate risks, and achieve substantial economic savings in the coming decade.
