Chennai: India’s renewable energy capacity deployment could accelerate by more than 20% during 2026-30 if infrastructure bottlenecks are addressed and market reforms implemented, while biofuel consumption is projected to rise to 16 billion litres by 2030, according to the latest report by the International Energy Agency (IEA).India has expanded its clean energy manufacturing and alternative fuel ecosystem through policy support, including production-linked incentive (PLI) schemes and domestic sourcing requirements for solar photovoltaic (PV) modules. The country has also increased biofuel production sixfold between 2020 and 2025, with liquid biofuel consumption reaching around 11 billion litres in 2025.India’s bioenergy ambitions extend beyond transport fuels.
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Sustainable aviation fuel (SAF) blending targets for international flights are set to begin at 1% in 2027 and rise to 5% by 2030, creating a new market for low-carbon aviation fuels.Compressed biogas is emerging as a domestic alternative to imported natural gas. India’s sustainable feedstock potential could support the production of up to 75 billion cubic metres of gas equivalent annually, close to the country’s current natural gas demand.The opportunity is significant, as natural gas import dependence is projected to rise from 52% in 2024 to around 71% by 2030. Scaling up biogas production could help contain import requirements and strengthen energy security. However, realising this potential would require more extensive feedstock supply chains and adherence to sustainability standards.India is emerging as a global clean energy manufacturing hub, helping diversify international supply chains. Government industrial policies have helped mobilise investment in solar PV manufacturing.Annual solar PV module manufacturing capacity reached around 225 GW in Sept 2026 and is projected to rise further by 2030. The government is now targeting strategic upstream segments of the solar supply chain, where global dependence on imports from China exceeds 95%.Grid infrastructure, energy storage and demand-side flexibility are key requirements for integrating increasing volumes of variable renewable energy into the power system.India’s next phase of renewable energy expansion will depend on faster development of transmission infrastructure, greater energy storage capacity, improved power forecasting and dispatch, and more flexible electricity demand. The IEA report also said strengthening the finances of power distribution companies (DISCOMs) and reducing delays in land acquisition, permitting, and project execution will be critical.
