New Delhi, June 6 -- India has achieved the third-largest growth in power generation capacity globally over the past five years and is poised to exceed its 2030 clean energy targets ahead of schedule, according to the International Energy Agency's World Energy Investment report 2025 released on Thursday. The country's non-fossil power generation capacity reached 44% in 2024, rapidly approaching its ambitious target of 50% by 2030. Only China and the United States have seen larger capacity additions during this period. "India looks set to reach its 2030 target of 50% non-fossil generation capacity ahead of schedule," the IEA report stated, highlighting the nation's accelerated transition towards sustainable energy. In 2024, 83% of India's power sector investment flowed to clean energy, with the country emerging as the world's largest recipient of development finance funding, securing around $2.4 billion in project-type interventions for clean energy generation, the report added. Solar photovoltaic technology has spearheaded this transformation, constituting more than half of total non-fossil investment over the review period. The surge in renewables investment comes alongside growth across all power generation sources, driven by sharply rising electricity demand in a what is the world's fastest growing major economy. Electricity demand has been rising sharply due to increases in commercial and residential space, a surge in ownership of air conditioners and appliances, and rising demand from industry, the report added. Under India's updated nationally determined contribution to the Paris Agreement from August 2022, the nation committed to reducing its GDP emissions intensity by 45% from 2005 levels by 2030 and achieving 500GW of non-fossil fuel-based energy capacity-equivalent to 50% of total installed capacity. India is yet to update its Nationally Determined Contributions (NDC) for the 2035 period. NDCs are voluntary climate action plans that countries submit under the Paris Agreement, outlining their specific targets for reducing greenhouse gas emissions and adapting to climate change impacts. While not legally binding under international law, NDCs create political and reputational obligations. India has announced a range of measures to facilitate and support investment in non-fossil power generation, domestic manufacturing of key energy components such as batteries and solar PV modules, and in transmission and distribution. While a large share of investment in India's power generation capacity and transmission networks is met by domestic sources, foreign direct investment has been growing steadily, reaching $5 billion in 2023-nearly double pre-coronavirus levels. This growth is promoted in part by rules permitting 100% FDI across electricity generation sources (except nuclear) and transmission infrastructure. However, foreign portfolio investment in energy has declined in the past two years due to a range of macroeconomic and sectoral factors, the IEA said. India's cost of capital for grid-scale renewable energy is one of the lowest among its emerging market and developing economy counterparts, though it remains 80% higher than in advanced economies. Higher financing costs affect the financial viability of projects, leading to higher energy prices. Furthermore, real and perceived risks affect the attractiveness of projects to investors, the report noted. China has cemented its position as the world's single largest investor in energy. Although well behind China, energy investment trends in India and Brazil stand out among emerging and developing economies. Strong and sustained policy support has enabled these countries to take advantage of low-cost solar power, accompanied by significant wind and bioenergy investments, and the development of Brazil's large offshore oil resources....