India's power sector has undergone a substantial transformation over the last decade, achieving universal electricity access and a rapid increase in renewable energy capacity. The upcoming budget is anticipated to build on this progress by emphasizing the modernization of utilities and encouraging further interventions in the energy transition. Decarbonizing existing infrastructure, especially in transport, buildings, and industries, is a key focus area. Additionally, initiatives like a Carbon Capture and Storage (CCS) project for hard-to-abate industries and the promotion of electric vehicles through schemes like FAME are crucial. The solar sector in India has shown significant growth, with a record 18 GW solar capacity added in FY24. However, to reach the ambitious 500 GW target by 2030, the pace of renewable energy capacity additions needs to increase substantially. This requires a focus on corporate renewable energy procurement, support for manufacturing, promotion of innovative solar applications, and skill development in clean energy sectors. Proposed measures in the budget include concessional tax rates on carbon credits and renewable energy credits, as well as the adoption of green financing frameworks to incentivize investments. Tax incentives for Green Bonds can play a role in reducing the cost of green financing and encouraging sustainable energy projects. Moreover, proposals for promoting Green Hydrogen through tax incentives, including deemed export status for electricity supplied to Green Hydrogen units and reduced customs duties on solar panels, aim to boost the green hydrogen sector. Overall, the budget expectations reflect a positive outlook towards advancing renewable energy, electric vehicles, smart grids, and sustainable energy financing in India, aiming to accelerate the country's energy transition and meet its renewable energy targets.