India's Budget 2024: Strengthening Power Infrastructure for a Sustainable Future
Key Ideas
  • Analysts anticipate supportive reforms in the upcoming Budget to enhance the country's power infrastructure and address climate resilience.
  • Focus on green hydrogen projects, renewable energy capacity build-up, and skill development in green technology is expected to establish India as a global hub for sustainable energy production.
  • Industry experts emphasize the importance of policy support for the Green Hydrogen Mission and decarbonizing hard-to-abate sectors through pilot projects like carbon capture.
  • The sector envisions a significant increase in renewable energy capacity with policy stimulus, aiming to add 50-60 GW annually from the current 10-15 GW.
As temperatures rise and power demand surges, analysts predict that the upcoming Budget in India will introduce reforms to bolster the nation's power infrastructure. The focus is on enhancing climate resilience in the face of adverse weather events, with funding expected for the creation of climate-resilient power infrastructure. The government plans to continue adding coal-based capacity until renewable energy (RE) becomes more viable. Incentives for balance of plant segments and concessional duties on solar module imports, crucial for green hydrogen projects, are anticipated. There is a call for policy support to address challenges in infrastructure, storage, and transportation related to the green hydrogen mission, aiming to position India as a global green hydrogen production hub. Decarbonizing hard-to-abate sectors is highlighted as a priority, with the suggestion of budgetary allocations for pilot projects such as carbon capture. The Budget aims to increase RE capacity to 500 GW by 2030, with a focus on skill development and innovation in green technology. Emphasis is placed on distributed RE sources like rooftop solar and battery energy storage systems. The industry seeks continued support for domestic manufacturing capacity through incentive schemes and programs promoting innovative solar applications. With expected policy stimulus, the sector aims to significantly increase RE capacity annually, moving from 10-15 GW to 50-60 GW. The Budget is viewed positively as a critical step towards a more sustainable and resilient power infrastructure.
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