Energy investment to hit $170 bn

iea report

India's energy investment is set to reach a record $170 billion in 2026, driven by rapid expansion in solar power and oil refining as the country accelerates efforts to meet rising energy demand and strengthen infrastructure for its clean energy transition.

The International Energy Agency (IEA), in its World Energy Investment 2026 report, said energy investment in India has grown at an average annual rate of 11% over the past five years, with solar photovoltaic (PV) investment rising 25% annually and oil refining investment growing 23% over the same period. Together, the two sectors accounted for roughly a quarter of the increase in overall energy spending. 

The surge in refining investment has put India on track to expand refining capacity by nearly 15% by 2030, even as the country remains heavily dependent on imported crude oil, the report said. Upstream oil and gas investment, however, has contracted by an average of 7% annually since 2020, prompting the government to introduce a new licensing regime aimed at attracting fresh capital into exploration and production. 

According to the IEA, 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. Power sector investment accounts for roughly half of India's total energy spending.