Overview
India is set to spend a record $170 billion on energy projects in 2026. The surge is driven by rapid growth in IEA’s World Energy Investment 2026 report. Solar photovoltaic (PV) and oil‑refining investments alone account for about one‑quarter of the total rise.
Key Developments (2022‑2026)
- Solar PV investment grew at 25 % per year; oil‑refining at 23 % per year.
- Refining capacity is projected to increase by 15 % by 2030 despite heavy reliance on imported crude.
- Upstream oil & gas spending fell by 7 % annually since 2020, prompting a new licensing regime to attract explorers.
- Coal‑supply investment, the second‑largest globally, is expected to reach $13 billion in 2026, aiming for 1.5 bn tonnes of domestic coal by 2030.
- Power‑sector outlay forms roughly 50 % of total energy spending. Solar investment alone hit $20 billion in 2025, helping meet the NDC target of 50 % non‑fossil generation five years early.
- Renewables and nuclear now receive USD 3 for every USD 1 spent on fossil‑fuel generation, up from 1.5 : 1 in 2021.
- Transmission & distribution (T&D) investment is set to reach $26 billion in 2026, driven by the GEC project.
- Energy Storage System (ESS) tenders crossed 100 GWh in 2025, with battery tariffs falling from $14,700/MW/month in 2023 to under $3,000/MW/month in 2025.
- Hydropower and nuclear investments have tripled since 2020; the nuclear target is 100 GW by 2047, up from 9 GW, after reforms allowing private firms (up to 49 % foreign equity) to build reactors and SMRs.
Important Facts
- Overall energy investment grew at an average of 11 % per year over the last five years.
- Solar and wind now constitute **more than 50 % of installed generation capacity**.
- Coal‑fired generation investment has fallen to **≈40 % of its 2010 peak**.
- Electric‑vehicle (EV) investment stands at **$2 billion**, representing **~5 % of total vehicle sales**.</