The Kerala Budget for 2025-26 focuses on advancing green hydrogen projects, pumped storage projects (PSP), and battery energy storage systems (BESS) to bolster the state's energy sector. Notable allocations include ₹100 crore for PSPs aimed at enhancing energy storage capabilities and ₹6.5 crore dedicated to implementing green hydrogen initiatives. Additionally, the budget earmarks ₹5 crore for establishing a 500 MW BESS in Mylatti, Kasargod by 2026. The budget also outlines plans for the Hydrogen Valley Project, with ₹5 crore allocated for the first phase, set to be executed in a public-private partnership model. A substantial amount of ₹1,156.76 crore has been designated for the energy sector for the upcoming fiscal year. Emphasizing renewable energy, the budget allocates ₹67.96 crore for non-conventional and renewable energy sectors, including ₹51.10 crore for the Agency for New and Renewable Energy Research and Technology (ANERT). Furthermore, funds worth ₹31.50 crore have been set aside for renewable energy projects and programmes, along with ₹5 crore for the electrification of distant tribal areas. The budget also highlights the growth in internal electricity generation, with a notable increase of 1,306.238 MW during the current government's term, contributed by hydroelectric projects and solar power plants. The holistic approach of the budget towards sustainable energy development showcases a positive trajectory for Kerala's energy sector.