Pre-Budget Expectations: Renewed Focus On Green Energy In India

As India prepares for the Union Budget 2024-25, leaders in the renewable energy sector are voicing their expectations and recommendations to drive sustainable growth. The forthcoming budget is anticipated to build on India’s commitment to achieving Net Zero emissions by 2070, with significant emphasis on green energy initiatives. Insights from various industry leaders underscore the need for strategic planning, policy support, and robust investments to propel the renewable energy sector forward.

AMPIN Energy Transition

Mr. S. K. Gupta, CFO of AMPIN Energy Transition, finds it encouraging that the interim budget continues to emphasize green energy promotion. He points to the extension of Viability Gap Funding for offshore wind energy and schemes like the Pradhan Mantri Suryodaya Yojana as positive steps. Mr. Gupta hopes that the final budget will address long-standing demands such as rationalizing the renewable policy framework between state and central governments, reducing import duties and GST on critical inputs, and extending income tax benefits for new power generation companies.

ICRA Limited

Mr. Girishkumar Kadam, Senior Vice President & Group Head – Corporate Ratings at ICRA Ltd., acknowledges the budget’s focus on green energy, particularly the Viability Gap Funding scheme for offshore wind energy. He notes that this will improve cost competitiveness and aid in renewable capacity addition. Mr. Kadam also highlights the positive impact of measures for promoting rooftop solar and the benefits of implementing a 100 MT coal gasification and liquefaction facility. Additionally, the mandatory use of compressed bio-gas in CNG and PNG is seen as a step towards meeting the growing natural gas requirements and reducing import dependency.

Kundan Green Energy

Mr. Udit Garg, CEO & Director of Kundan Green Energy, stresses the importance of hydropower and the challenges it faces, such as financing sentiment, clearances, and socio-environmental impacts. He recommends measures such as state and central government cooperation, developing basic infrastructure, and establishing a nodal agency dedicated to hydropower development. “The pumped storage hydropower plants can be incentivized for maintaining grid stability through ancillary services,” Mr. Garg suggests, highlighting their role in supporting the grid integration of intermittent renewables like solar and wind.

BluPine Energy

Mr. Neerav Nanavaty, CEO of BluPine Energy, calls for increased support for the renewable sector to drive innovation and ensure efficient project execution. He emphasizes the need for a skilled workforce, robust regulations for the C&I sector, and seamless integration of renewable sources into a resilient grid infrastructure. Mr. Nanavaty also expects the budget to provide adequate funding and favorable policies for the solar sector, addressing challenges such as high initial costs and regulatory complexities.

Green Power International Pvt. Ltd.

Mr. Varun Puri, Managing Director of Green Power International, emphasizes the necessity for continued governmental support to accelerate the journey towards Net Zero emissions. He highlights the importance of budget allocations for emerging technologies like green hydrogen and the need for investments in R&D to produce hydrogen from coarse water quality, ideally close to seawater. “Incentivising carbon capture and utilization is one viable approach,” says Mr. Puri, as it offers a powerful solution until hydrogen costs decrease with scaling. He expects a strong policy framework in the Union Budget to facilitate efficient growth and encourage businesses to adopt eco-friendly practices.

EcoRatings

Ms. Aditi Balbir, Co-Founder and CEO of EcoRatings, advocates for prioritizing investments in sustainable infrastructure projects and clean energy solutions. She notes that 70% of greenhouse gas emissions stem from energy, industry, and buildings. “A transformative overhaul of our infrastructure assets is essential,” she states. Ms. Balbir also calls for financial incentives for companies committed to ESG compliance, such as lower interest rates on loans and dedicated grants, linking sustainability efforts with economic benefits. Furthermore, she suggests the implementation of mandatory Business Responsibility and Sustainability Reports (BRSR) for all companies to ensure consistent reporting on sustainability initiatives.

AXITEC Energy India

Tanmoy Duari, CEO of AXITEC Energy India, a leading solar module manufacturer, expressed optimism about the recent interim budget. He lauded the announcement of the rooftop solar program, which promises to provide clean energy and income opportunities to one crore households across India. “Through rooftop solarisation, these households will obtain up to 300 units of free electricity every month while contributing to the national grid and earning from it,” Duari stated. He emphasized the potential of this program to boost the renewable energy sector and help India achieve its climate goals, reflecting the government’s commitment to fiscal prudence and economic recovery.

The Union Budget 2024-25 presents a crucial opportunity for India to strengthen its renewable energy sector and align with its Net Zero targets. Industry leaders are hopeful that the budget will introduce strategic measures, financial incentives, and robust policy frameworks to support sustainable growth and innovation. With the right initiatives, India can continue to lead the global transition towards a greener future.