During the Interim Budget announcement, Finance Minister Nirmala Sitharaman announced a 102% increase in allocation for green hydrogen and a doubling of the allocation for solar power, setting a clear course for achieving its ambitious green energy goals.
The Interim Budget for 2024-25 allocated ₹600 crore for the National Green Hydrogen Mission, compared to the previous year's budget of ₹297 crore.
Aditi Bhosale Walunj, Founder and CVO, Repos Energy, said, “The Government of India is taking active steps in this direction with the National Green Hydrogen Mission. This is a progressive step towards sustained future growth as it would ensure an uninterrupted supply of clean energy to all the stakeholders. The technological applications may also benefit us in the efficient and optimal use of currently available fuels. 24/7 easy access to energy shall drive domestic production.”
Solar energy seemed to have taken centre stage in the Interim Budget announcements with an allocation of ₹10,000 crore, representing an uptick from ₹4,970 crore in the last fiscal year.
Additionally, the government allocated ₹930 crore for wind power (grid) which indicates a slight increase from ₹916 crore allocation in the previous budget.
The finance minister also said during her budget speech that under rooftop solarisation and ‘muft bijli’ scheme, one crore households will be enabled to obtain free electricity up to 300 units every month.
“Prime Minister Narendra Modi’s ambitious vision of rooftop solarisation will provide 300 units of free electricity to 1 crore households every month resulting in savings of ₹15,000-20,000 per month. This significant announcement promises a bright future not only for the renewable energy industry but also for numerous enthusiasts and entrepreneurs urging new employment opportunities,” Gyanesh Chaudhary, Chairman & Managing Director of Vikram Solar, opined.
The emphasis on rooftop solar installations signifies a dual triumph for the power sector and renewable energy capacity. “Prioritising rural economy support reflects a commitment to inclusive development, fostering prosperity at grassroots levels. The push for rooftop solarisation not only aligns with environmental goals but also empowers individuals and communities economically,” said Ketan Mehta, MD & CEO of Rays Power Infra.
A noteworthy inclusion in the Budget is the allocation of ₹300 crore for the bioenergy programme under the Ministry of New and Renewable Energy.
“Efforts to promote green growth through bio-manufacturing is a step in the right direction to achieve our net-zero targets,” Vikram Solar's Chaudhary further added.
Additionally, in an impetus to offshore wind power capacity, FM Sitharaman also said that the government would provide viability gap funding (VGF) for the initial capacity of 1 GW of offshore wind power.
Presenting the interim budget for FY25, Sitharaman said: “Viability gap funding will be provided for harnessing offshore wind energy potential for the initial capacity of 1 gigawatt."
The VGF “initiative holds the potential to open up large opportunities for the wind sector, as India marches aggressively towards its 2030 renewable energy and 2070 net-zero targets. Compared to onshore, offshore projects currently are significantly costlier from the cost of energy perspective, and the VGF announced in this year’s budget will aid in lowering power generation costs to ensure power offtake from these projects, as well as instil confidence among wind players towards investing in offshore technologies. We expect the benefits to materialise more prominently in the medium to long term,” said Devansh Jain, Executive Director, INOXGFL Group.
“The government's decision to reduce borrowing from markets is a pivotal development, unlocking opportunities for increased private investment, particularly in sectors like renewables. This shift will act as a catalyst for India's clean energy transition, propelling us closer to a sustainable future,” according to Bikesh Ogra, MD & CEO of Jakson Green.
The allocation of a ₹1 lakh crore corpus for interest-free financing for R&D in sunrise domains – the emerging industries of innovation – will prove a milestone in climate action of India, as per Manish Dabkara, chairman and MD EKI Energy.
