On May 28, the International Energy Agency (IEA) released the World Energy Investment Report 2026, stating that India′s energy investment will hit a record high of $170 billion in 2026, driven mainly by photovoltaic construction and the expansion of refining capacity. Over the past five years, India′s energy investment has registered an average annual growth rate of 11%. Investment in the photovoltaic sector surged by 25% and that in oil refining rose by 23%. Together, the two sectors account for a quarter of the country′s total growth in energy investment. Fueled by robust investment in refining, India′s refining capacity is projected to increase by 15% by 2030.

Despite the rapid expansion of new energy, with installed photovoltaic and wind power capacity exceeding 50% of the total installed power capacity, coal remains the backbone of India′s power generation and industrial energy consumption. India′s coal-related investment will rise to $13 billion this year, and the country is scaling up coal mining and domestic output with policy support. Hydropower investment in India has also tripled over the past five years, while hybrid energy projects, nuclear power and pumped storage are enjoying steady growth.

Nevertheless, inadequate power grid development has become a prominent challenge. The growth of new energy installed capacity far outpaces grid expansion, leading to a worsening problem of wind and solar power curtailment. Data from energy think tank Ember shows that India saw 300 gigawatt-hours of curtailed renewable energy in the first quarter of this year, nearly two-thirds of which stemmed from deficiencies in power transmission and distribution infrastructure. Currently, India is ramping up investment in grid upgrading to build power transmission corridors for regions rich in new energy resources, mitigate energy curtailment and sustain the sound development of the new energy industry.