An aerial view of the Pavagada Photo voltaic Park on October 11, 2021 in Kyataganacharulu village, Karnataka, India. Picture: Abhishek Chinnappa/Getty Pictures
This Union Price range for 2024-25 comes at a vital juncture when the specter of local weather change is looming giant and the worldwide push in the direction of transitioning to wash power techniques is gaining momentum. The forthcoming price range is predicted to play a pivotal function in empowering the nation to make vital strides in making a cleaner power system by streamlining coverage measures and unlocking investments.
The price range for 2023 exhibited a noticeable shift in the direction of selling clear power, outlining a path for India’s pursuit of a extra sustainable future. ‘Inexperienced Development’ emerged as one of many seven priorities recognized, with varied measures introduced to assist this goal. These initiatives included the allocation of Rs19,700 crore to the Inexperienced Hydrogen Mission, Rs35,000 crore for precedence capital investments in tasks devoted to power transition and net-zero objectives, Viability Hole Funding for 4,000 MW hours of battery storage capability, and the Inexperienced Credit score Programme, amongst others.
Given the nation’s steadily rising power demand, the ability sector hopes that Price range 2024 maintains this momentum in the direction of sustainability. The height energy demand reached a report excessive of 240 GW in 2023, underscoring the urgency of transitioning from heavy dependence on coal-based energy.
Capital expenditure for RE tasks & self-reliance in photo voltaic panel manufacturing
One notable setback within the energy sector throughout this fiscal 12 months was the sluggish progress in renewable power capability, with solely 7 GW added within the first seven months of 2023-24. Reaching a further 33 GW of renewable power capability by this fiscal 12 months poses a problem, emphasising the necessity for budgetary interventions. The price range ought to enhance capital expenditure for renewable power tasks, particularly in photo voltaic and wind.
Though India has seen vital progress within the capability for photo voltaic PV cells and modules, surpassing 6.6 GW for cells and 38 GW for modules in 2023, the heavy dependence on photo voltaic panel imports have to be addressed in Price range 2024. The price range ought to introduce measures incentivising native manufacturing to foster self-reliance in photo voltaic panel manufacturing, and Manufacturing-Linked Incentives (PLIs) have to be prolonged for module manufacturing parts.
Bringing down inexperienced hydrogen value
Within the pursuit of turning into a distinguished participant in inexperienced hydrogen, India wants a strategic strategy to cut back the prices of hydrogen manufacturing and storage. At the moment priced at Rs300 per kg, efforts must be made to cut back the price of inexperienced hydrogen to Rs82 per kg. The price range must also assist home manufacturing of electrolysers and decrease GST charges for his or her manufacturing from the present 18 %.
To optimise the supply of inexperienced hydrogen, there’s a right away have to improve the nation’s distribution techniques and modernise grid infrastructure as effectively. The price range ought to introduce a Inexperienced Hydrogen Buy Obligation to stimulate the expansion of this rising trade and facilitate a speedy rollout, instilling confidence in buyers and banks by making certain sustained demand.
Improvement of sensible grid and power storage
Price range 2024 ought to allocate assets for growing sensible grids and power storage, facilitating the seamless integration of renewable power into the grid. This aligns with India’s local weather objectives and has the potential to create a big variety of jobs and drive financial progress. Moreover, investments in analysis and growth initiatives of rising applied sciences are wanted to strengthen India’s new power panorama and produce about systemic efficiencies.
In conclusion, Price range 2024 is poised to function a catalyst, guiding India in the direction of a cleaner and extra sustainable future. The budgetary interventions will play a pivotal function in shaping the trajectory of India’s sustainable power initiatives, considerably impacting the nation’s standing within the international clear power panorama. Essentially, Price range 2024 will function a testomony to India’s robust dedication to embracing a accountable and environmentally acutely aware future.
The author is the managing director and CEO of IntelliSmart.
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