India’s energy investment is projected to hit a record USD 170 billion in 2026, according to the International Energy Agency’s (IEA) World Energy Investment 2026 report. The surge is being driven by rapid expansion in solar power, oil refining, grid infrastructure, and energy storage as the country works to meet rising electricity demand and strengthen its clean energy transition.
The report stated that India’s energy investment has grown at an average annual rate of 11 percent over the past five years. Investment in solar photovoltaic projects increased by 25 percent annually, while oil refining investment rose by 23 percent during the same period.
India achieved its Nationally Determined Contribution target in 2025 by sourcing 50 percent of installed power generation capacity from non-fossil fuel sources, five years ahead of schedule. Solar and wind energy now account for more than half of the country’s installed generation capacity.
The IEA noted that India is also increasing investments in transmission networks, battery storage, hydropower and nuclear energy to support renewable energy expansion. Transmission and distribution investment is expected to reach USD 26 billion in 2026 under initiatives such as the Green Energy Corridor programme.
At the same time, coal continues to remain a major part of India’s energy mix, with coal supply investment expected to touch USD 13 billion in 2026. India is also targeting 100 GW of nuclear power capacity by 2047, supported by recent reforms allowing greater private sector participation in the sector.
The report highlights India’s growing focus on balancing energy security with long-term sustainability goals.
India Accelerates Clean Energy Transition with Record Investments
