New Delhi [India], November 7 (ANI): India's renewable energy capacity is projected to reach around 530 GW by 2030, with solar photovoltaic (PV) accounting for more than 80% of the expansion, positioning the country as the world's second-largest renewable energy growth market, according to the International Energy Agency (IEA).

In its India Renewable Energy Market Report 2026, the agency said the country's renewable capacity has crossed 300 GW in the fourth quarter of 2026, almost quadrupling over the past decade.

Solar PV capacity is expected to exceed 350 GW by 2030, while wind power is projected to approach 90 GW. Hydropower capacity is forecast to reach 75 GW, supported by the commissioning of large conventional projects and accelerating investment in pumped storage.

The expansion would put India on track to meet its target of 500 GW of non-fossil fuel-based installed capacity by 2030. The country had already achieved its objective of sourcing 50 per cent of installed electricity capacity from non-fossil sources in 2025, five years ahead of schedule.

The IEA expects annual renewable capacity additions to remain above 50 GW through 2030, compared with 49 GW in 2025. Under an accelerated growth scenario, annual additions could reach 70 GW by the end of the decade.

Renewable electricity generation is also projected to nearly double from around 500 terawatt-hours (TWh) in 2025 to approximately 950 TWh in 2030. This would increase renewables' contribution to India's total electricity generation from nearly 25 per cent to 35  per cent.

Solar PV is expected to become the dominant contributor, accounting for more than half of renewable electricity generation by 2030. Its output is projected to triple between 2025 and 2030, while wind generation could increase by around 50 per cent.

The agency attributed the expansion to competitive auctions, supportive policy frameworks, falling technology costs and growing demand from commercial and industrial consumers.

However, sustaining the growth trajectory will require faster transmission expansion, energy storage deployment and improved power system flexibility. Land acquisition, project execution delays and the financial health of distribution companies also remain important challenges.

The IEA said addressing these constraints could accelerate renewable capacity deployment during 2026-2030 by more than 20%. (ANI)