IEA: India to Be the World's Second-Largest Renewable Energy Growth Market by 2031
The International Energy Agency (IEA), a Paris-based body that studies world energy markets, expects the world to add more than 4,770 GW of renewable energy capacity during 2026-2031.
China will remain the largest market, with about 53% of global renewable capacity growth over 2026-2031, down from over 60% in 2025. India will be the second-largest.
India's renewable capacity addition in 2026-2031 is expected to be 2.6 times that of the previous six years. Its share of global growth will almost double to nearly 8.5%.
Reasons given: larger auctions, faster signing of power contracts, better finances of electricity distribution companies (discoms), and faster building of transmission lines and storage.
Solar power (including rooftop solar) and pumped-storage hydropower are growing fast in India. Onshore wind is losing ground because of weaker building, small auctions and competition from solar paired with storage. Global onshore wind forecasts were cut by over 9 GW, led by India and Japan.
The IEA noted that in India, wind power rises sharply in the monsoon and falls in other seasons, while solar stays fairly steady. So India's combined wind-solar output varies more across seasons than in the European Union.
Variable Renewable Energy (VRE) and Grid Integration
Some kinds of clean electricity, like solar and wind, depend on the weather. The sun sets every evening, clouds pass, and the wind rises and falls. Power from such sources is called variable renewable energy (VRE). Grid integration means all the steps needed to fit this up-and-down power into the electricity grid safely, so that lights stay on even when the sun or wind is not available.
The IEA says India will be the world's second-largest renewable growth market, but it also warns that India's wind and solar output swings strongly across seasons. Growth in pumped storage and solar paired with storage shows India is already working on grid integration. How well India manages this variability will decide whether its new capacity turns into reliable round-the-clock power.
India's Renewable Energy and Non-Fossil Fuel Capacity Targets
India has set clear goals to produce more of its electricity from clean sources like the sun, wind, water and nuclear power, and less from coal. The headline goal is 500 GW of non-fossil fuel capacity by 2030. Under its updated Nationally Determined Contribution (NDC) of August 2022 under the Paris Agreement, India also promised that about 50% of its installed electricity capacity would come from non-fossil sources by 2030. That 50% mark was crossed well ahead of time, in 2025.
The IEA forecast that India's renewable additions in 2026-2031 will be 2.6 times the previous six years shows India is on a faster path towards its 500 GW goal. Most of this growth will come from solar.
Pumped Storage Hydropower
Pumped storage hydropower is a way to store electricity using water and two reservoirs at different heights. When there is extra electricity, it pumps water from the lower reservoir to the upper one. When power is needed, the water flows back down through turbines and makes electricity, like a giant water battery. It is especially useful for storing cheap midday solar power and releasing it in the evening peak.
The IEA said pumped storage in India is gaining momentum because of faster approvals and a growing list of projects. This storage helps balance the seasonal and daily swings in India's wind and solar power.
- Global renewable capacity addition forecast for 2026-2031: more than 4,770 GW (IEA)
- China: about 53% of global growth over 2026-2031 (was over 60% in 2025)
- India: second-largest market; 2.6 times the previous six-year addition; share of global growth nearly 8.5%
- ASEAN, Middle East and North Africa and sub-Saharan Africa together triple their growth pace
- Asia Pacific excluding China: more than 840 GW added in 2026-2031, more than double 2020-2025; forecast revised up by 15%
- Global onshore wind forecast cut by over 9 GW, led by India and Japan
- IEA: set up in 1974 after the 1973 oil crisis; headquarters in Paris