IGI Logo

The World Energy Investment 2026 report released by the International Energy Agency (IEA) has stated that India's energy investment is set to reach a record $170 billion in 2026, fueled 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 report said that over the past five years, energy investment in India has grown at an average annual rate of 11%, with solar photovoltaic (PV) investment rising 25% annually and oil refining investment growing 23% over the same period. Together, the two sectors accounted for about 25% of the rise in overall energy spending.

It stated the rise in refining investment has put India on track to expand refining capacity by nearly 15% by 2030, despite the country remains heavily dependent on imported crude oil. Upstream oil and gas investment, however, has fallen by around 7% each year since 2020, pushing the government to launch a new licensing regime, aimed at attracting fresh capital into exploration and production. 

According to the IEA, India is the world’s second-largest investor in coal supply, with investments having tripled over the past decade. Coal continues to dominate India's energy mix, supporting both electricity 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.