2024-25 Budget to Prioritize Advancements in Electricity Sector
– Government aims to localize manufacturing base for solar, hydrogen, and batteries
– Strong focus on renewable energy sources
– Strengthening government commitment to the sector
– Fiscal policies to emphasize resilience of electricity infrastructure
In an effort to modernize energy infrastructure, the central government is set to prioritize advancements in the electricity sector in the upcoming 2024-25 budget. With a strong focus on renewable energy sources, the government aims to localize the manufacturing base for solar, hydrogen, and batteries, taking global geopolitical shifts post-COVID19 into consideration.
Anujesh Dwivedi, partner at Deloitte India, mentioned that the upcoming budget is expected to strengthen the government’s commitment to the renewable energy sector by supporting local manufacturing capabilities aligned with global energy transition trends. This move comes as the government aims to mitigate the impacts of increasingly severe weather events linked to climate change.
Focusing on Resilience and Capacity
– Digitizing electrical grids for the integration of Distributed Energy Resources (DERs)
– Enhancing capacity to manage peak demands
– Achieving 2030 target of 500 GW of non-fossil fuel generation
The upcoming fiscal policies are anticipated to emphasize the resilience of the electricity infrastructure. This includes significant allocations towards digitizing electrical grids to facilitate the integration of Distributed Energy Resources (DERs) and enhance capacity to manage peak demands.
India has achieved a remarkable milestone by adding 18 GW of solar capacity in FY24. However, the country faces the challenge of scaling up the annual renewable energy capacity to approximately 50 GW in order to achieve its 2030 target of 500 GW of non-fossil fuel generation. This will require not only continuing existing initiatives but also a focused effort, particularly towards corporate contributions to renewable energy and offshore wind projects.
Supporting Emerging Energy Technologies
– Highlighting electric vehicles (EVs), green hydrogen, and nuclear Small Modular Reactors (SMRs)
– Enhancing energy security and reducing dependency on fossil fuels
The budget is also expected to highlight emerging energy technologies such as electric vehicles (EVs), green hydrogen, and Nuclear Small Modular Reactors (SMRs). These technologies are deemed crucial for enhancing India’s energy security and reducing dependency on fossil fuels.
Anujesh Dwivedi emphasized that investments in the upcoming budget are likely to include substantial support for improving transmission and distribution infrastructure. This will be accompanied by strategic measures to digitize the grid, enhancing its capability to manage the requirements of a modern, decentralized energy system.
Union Budget 2024-25
Finance Minister Nirmala Sitharaman is scheduled to present the Union Budget for FY25 on July 23. The Budget session will begin on July 22 and conclude on August 12.
The upcoming budget’s focus on prioritizing advancements in the electricity sector and renewable energy sources showcases the central government’s commitment to modernizing energy infrastructure. With a strong emphasis on localizing manufacturing and supporting emerging energy technologies, the budget aims to enhance India’s energy security, reduce dependence on fossil fuels, and achieve ambitious renewable energy targets. The allocations towards improving transmission and distribution infrastructure and the digitization of the grid will further strengthen the country’s resilience in the face of climate-related challenges.
