India to become world’s second largest RE growth market by 2031: IEA

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SENSEX 81,028.02

+ 1,718.01

NIFTY 25,030.35

+ 493.75

NIFTY 25,030.35

+ 493.75

CRUDEOIL 8,514.00

 -46.00

CRUDEOIL 8,514.00

 -46.00

GOLD 141,275.00

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China’s declining share of global renewables capacity growth is shifting market focus to India, says IEA

By Rishi Ranjan Kala

Updated - November 06, 2026 at 08:28 PM. | New Delhi, November 6

Chennai, 15/12/2014: For Tamil Nadu Desk / City: Tamil Nadu generate around 35% of India's total wind capacity, The Tamil Nadu government realized the importance and need for renewable energy, and set up a separate Agency, as registered society, called the Tamil Nadu Energy Development Agency (TEDA) as early as 1985, Now Tamil Nadu has become a leader in Wind Power in India, In Muppandal windfarm, Tamil Nadu the total capacity is 1500MW, which is the largest in India. As per TEDA, the total installed capacity in Tamil Nadu is 7253MW, picture taken at Aralvaymozhi mountain ranges in the Muppandal wind farm near Nagercoil, Tamil Nadu. Photo: B. Jothi Ramalingam | Photo Credit: JOTHI RAMALINGAM B

The global renewable energy capacity is expected to hit more than 4,770 GW during 2026 through 2031 with China accounting for the largest share followed by India, said the International Energy Agency (IEA).

“China is the largest market worldwide accounting for 53 per cent of global renewable capacity growth over 2026-2031. India is the second-largest country, while the Association of Southeast Asian Nations (Asean), the Middle East and North Africa (MENA) and sub-Saharan Africa collectively triple their growth pace,” the IEA said.

The agency noted that China’s declining share of global renewables capacity growth is shifting market focus to India, the second-largest contributor to global expansion.

“China accounted for over 60 per cent of global renewable capacity expansion in 2025; however, its share is projected to moderate to 53 per cent over the forecast period. By contrast, India’s renewable capacity expansion between 2026 and 2031 is expected to be 2.6 times greater than in the previous six-year period, almost doubling its contribution to global growth to nearly 8.5 per cent,” it added.

In India, higher auction volumes, faster contract signing, improved Discom finances and accelerated transmission and storage deployment would support faster renewable capacity growth.

While the renewable capacity outlook for India has been revised upwards from last year, trends vary across technologies. Solar PV underpins stronger growth, supported by rapid recent deployment, a large pipeline of awarded projects and expanding uptake of rooftop systems backed by policy support, IEA said.

Pumped-storage hydropower is also gaining momentum thanks to more efficient administrative processes and an expanding project pipeline. In contrast, onshore wind is losing ground amid weaker deployment, limited auction volumes and increasing competition from solar PV paired with storage, it added.

The IEA said that global onshore wind has been revised down by over 9 GW, led by India and Japan.

“In India, the seasonal relationship between wind and solar is less complementary. Wind generation shows pronounced seasonal fluctuations, increasing sharply in the monsoon season and falling significantly during the rest of the year,” the agency pointed out.

Solar PV

By contrast, solar PV generation remains comparatively stable in all seasons, with much smaller variations in monthly output. Consequently, the combined generation profile is more strongly influenced by seasonal changes in wind production, resulting in greater variability than in the European Union, it explained.

Outside of China, Asia Pacific adds more than 840 GW of renewables over the 2026-2031 period, more than double the level in the 2020-2025 period, with the forecast revised up by 15 per cent on stronger solar PV growth in India and South-East Asia. 

Published on November 6, 2026

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