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This paper considers options for a future Indian power economy in which renewables, wind and solar, could meet 80% of anticipated 2040 power demand supplanting the country’s current reliance on coal. Using a cost optimization model, here we show that renewables could provide a source of power cheaper or at least competitive with what could be supplied using fossil-based alternatives. The ancillary advantage would be a significant reduction in India’s future power sector related emissions of CO2. Using a model in which prices for wind turbines and solar PV systems are assumed to continue their current decreasing trend, we conclude that an investment in renewables at a level consistent with meeting 80% of projected 2040 power demand could result in a reduction of 85% in emissions of CO2 relative to what might be expected if the power sector were to continue its current coal dominated trajectory.