QAZAQ GREEN. India’s bioenergy sector is poised for rapid expansion, supported by effective government policies and rising demand, according to a new report by the International Energy Agency (IEA).
The report indicates that production of liquid and gaseous biofuels in India could at least double by 2030 if policy support is strengthened. Bioenergy development is expected to enhance the country’s energy security by reducing dependence on imported fuels, while also supporting economic growth, job creation—particularly in rural areas—and emissions reduction targets.
The IEA notes that India has a strong resource base for sustainable bioenergy, thanks to abundant agricultural residues and organic waste. This enables the expansion of modern biofuels without compromising food security.
IEA Executive Director Fatih Birol said India’s progress demonstrates the impact of clear targets, predictable policies and strong intergovernmental coordination. He highlighted ethanol and compressed biogas as key contributors to meeting rising energy demand while delivering tangible benefits for rural development. According to Birol, India could further scale up sustainable biofuels this decade, including fuels for aviation and industry.
The report highlights ethanol as one of India’s most successful policy-driven energy sectors. Since the National Policy on Biofuels was introduced in 2018, annual ethanol consumption has increased from under 2 billion litres to more than 11 billion litres, making India the world’s fourth-largest producer of liquid biofuels.
Compressed biogas has also seen rapid growth, supported by 11 national policy initiatives. Around 170 plants are currently operational, with nearly 300 additional projects under development. Investor interest is also increasing in sustainable aviation fuels, driven by rising demand for low-emissions solutions in the aviation sector.
Under the IEA’s main forecast, which reflects current policies, India’s use of liquid and gaseous biofuels is expected to grow by more than 50% by 2030. In an accelerated scenario, enhanced policy measures and improved supply chains could more than double consumption, representing a sixfold increase compared with 2020 levels.
To unlock this potential, the IEA recommends developing a comprehensive sustainable fuels roadmap, strengthening supply chains and infrastructure, increasing support for innovation, and establishing robust carbon accounting and sustainability frameworks to facilitate certification and access to international markets.
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