The upcoming interim budget may give a push to the renewable energy sector, in sync with the government’s plan to triple green energy capacity to 500 GW by 2030. Industry players after interactions with the government functionaries are optimistic about increased allocations, particularly towards bio-energy, solar, and wind, along with higher budgetary capital expenditure in green hydrogen and battery storage infrastructure. In addition, an extension of the existing schemes including the Production Linked Incentive for renewable manufacturing and viability gap funding for battery storage are expected.
The Indian Biogas Association expects that the interim budget will address the financial challenge in access to affordable finance for renewable projects through green bonds and carbon credits. “Carbon pricing mechanisms to encourage adoption of clean energy can also be expected (in the Budget),” said Gaurav Kedia, Chairman, Indian Biogas Association. “Measures to address transmission and distribution constraints for renewable energy integration are also expected.” In the 2023 Budget, the government had allocated Rs 19,700 crore to the Green Hydrogen Mission aiming an annual production of 5 million metric tonne of green hydrogen by 2030. Moreover, Rs 35,000 crore was allocated for priority capital investments for energy transition and to realize net-zero targets by 2070. This year, too, the industry expects an enhanced financial push to the sector as the world focuses to triple their green energy. Sanjeev Agrawal, President, PHD Chamber of Commerce and Industry has also recommended to the finance ministry to adopt green budgeting, where all government departments prepare environmental budget statements, highlighting their ‘green’ initiatives. “The renewable energy sector is at an inflection point, poised for transformative growth. With the forthcoming Interim Budget in February, as well as the post-election Union Budget in July, we anticipate reinforcement of the government’s long-standing commitment towards sustainability and renewable energy generation, as well as significant policy interventions – along with stability in terms of existing policies – to further the nation’s critical green objectives,” said Dilip Panjwani, CFO, Waaree Renewable Technologies Ltd. A key segment that has rather gained traction of the stakeholders and the government in the RE sector is the storage of renewable energy and its round-the-clock availability. With many players now focusing on enhancing the storage capacity, the industry is hoping for policy incentives to address the issue. “A laser focus on renewable energy capacity generation and utilization, and prioritization of the same over conventional energy sources will substantially move the needle on India’s clean energy transition,” Panjwani said. “Furthermore, in recognition of the key role played by robust energy storage solutions towards maintaining round-the-clock grid stability, policy incentives for this segment would also be very welcome.” The government has also been focused on boosting the domestic manufacturing capacity of capital items like solar modules required in RE capacities while striving to meet its ambitious targets. Hence, a strong impetus to innovation and indigenous manufacturing with strategic initiatives can be welcomed.
Source: https://www.financialexpress.com/budget/budget-expected-to-give-a-push-to-green-energy-3369767/#amp_tf=From%20%251%24s&aoh=17057518710388&referrer=https%3A%2F%2Fwww.google.com
