New Delhi: Driven by rapid expansion in solar power and oil refining, India’s energy investment is set to reach a record target of $170 billion in 2026. India, however, accelerates efforts to meet rising energy demand and strengthen infrastructure for its clean energy transition, a report revealed on Thursday.
As per the International Energy Agency (IEA) report, energy investment in India has grown 11 per cent annually on average in the past five years and is set to reach $170 billion in 2026. “Investment in solar PV grew annually by 25 per cent in this period, and oil refining by 23 per cent. Together, these two sectors contributed to one-fourth of India’s energy investment growth,” the IEA report said.
The surge in refining investment, the report said, has put India on track to expand refining capacity by nearly 15 per cent by 2030, even as the country remains heavily dependent on imported crude oil. “Upstream oil and gas investment, however, has contracted by an average of 7 per cent annually since 2020, prompting the government to introduce a new licensing regime, aimed at attracting fresh capital into exploration and production,” it said.
The IEA study has claimed that India is the second-largest investor in coal supply, and its investments have tripled over the last decade. “Coal continues to dominate India’s energy mix, underpinning both power generation and industrial demand. Investment in coal supply is expected to reach $13 billion in 2026, as India seeks to raise domestic coal production to 1.5 billion tonnes by 2030 from around 1 billion tonnes currently,” it said.
Similarly, power sector investment accounts for roughly half of India’s total energy spending. “In 2025, India achieved its nationally determined contribution target of sourcing 50 per cent of installed power generation capacity from non-fossil fuel sources – five years ahead of schedule – supported by a sharp increase in solar investment that reached $20 billion,” the report said.
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