India’s Power Sector Pins Hope on Upcoming Budget for Renewable Energy Push

India’s upcoming budget on July 23rd holds immense significance for the power sector, grappling with the ambitious target of achieving 500 GW of renewable energy capacity by 2030. This push for clean energy is crucial for the country’s economic aspirations of becoming a $5 trillion economy and achieving energy independence by 2047.

Key Challenges and Expectations:

• Scaling Up Renewables: Bridging the gap between current capacity and the 500 GW target requires installing 50 GW annually, a significant financial hurdle. The budget is expected to address financing mechanisms and encourage private-sector participation.
• Policy Continuity and Stability: The power sector needs consistent policies to thrive. Expectations include extending benefits like import duty waivers and single-window clearances for renewable projects.
• Balancing Act: While renewables are the future, thermal power remains crucial to meet peak demand. The budget should incentivize private investment in thermal capacity expansion.
• Energy Storage Solutions: Integrating variable renewable energy sources into the grid requires robust storage solutions. Budgetary measures for battery storage, including reduced customs duties and tax breaks, are anticipated.
• Green Hydrogen: As India seeks energy independence, green hydrogen is a key player. Increased budgetary allocation for green hydrogen production and infrastructure development is expected.
• GST Inclusion and Financial Support: Bringing power generation under the GST regime and providing low-cost financing for renewable projects would streamline costs and support long-term investments.
• Skill Development: Budgetary allocation for skill development programs is crucial to address the talent shortage in the renewable energy sector.

A Pivotal Moment:

This budget is a critical juncture for India’s power sector. Addressing these challenges and providing impetus for renewable energy, thermal capacity, and new energy sources will pave the way for a sustainable and self-reliant future.