Budget 2024: How preparing a budget can support the expansion of renewable energy
Renewable energy
Businesses from all industries praised Finance Minister Nirmala Sitharaman’s interim budget, with most saying it lays out a clear plan for an economically strong and advanced India by 2047. As they responded to the Finance Minister’s interim budget, a few other top executives expressed a cautious sense of confidence.
According to spglobal.com, India is expected to see the highest renewable capacity addition in 2024, at over 20 GW. The country’s power demand is growing at over 8% year on year, and its climate emissions are not forecast to peak until 2040–41.
Here are some other trends in 2024 for India’s power and renewables markets:
Rising renewable energy sector growth
The renewable energy sector is witnessing the highest year-over-year growth, with significant increases in solar and wind capacity.
Falling module costs
Falling module costs globally will play a vital role in 2024.
Increasing demand
India’s power requirement is projected to grow significantly in 2024. As a result, renewable energy is going to meet a substantial portion of this demand.
Strategic focus on renewable energy
The strategic focus on renewable energy and green financing aims to lay the framework for a sustainable future.
Establishing a robust ecosystem
Supplying the increased demand for renewable energy and building a strong ecosystem for green ammonia and green hydrogen will be crucial.
How budget planning can help stimulate the growth of renewable energy ?
The Interim Budget 2024 states that by 2030, the Indian government hopes to generate half of its operational power from non-fossil fuel sources. To meet the goal, further yearly capacity growth is necessary. The FY 2024–2025 budget is anticipated to prioritize sustainable financing for green energy projects, which will involve increasing rooftop solar installations, identifying the supply chain, and installing distributed RE installations.
The 2024–25 budget for India’s financial year is expected to focus on sustainable financing for renewable energy (RE) projects. The budget includes:
- Rs 10,000 crore for grid-based solar power in 2024–25, compared to Rs 4,757 crore in 2023–24.
- Rs 930 crore allocated for wind power for this year.
- Over Rs 11,500 crore in funding for sustainable development projects for the financial year March 2025
- Focusing more on rooftop solar installations
Rooftop solar plants
The finance minister announced that 10 million households will be solarized through rooftop solar plants. The budget also emphasizes rooftop solar and wind energy.
National Green Hydrogen Mission
The budget proposes over Rs 11,500 crore in combined funding for the National Green Hydrogen Mission. Investing in a large-scale network of pipes and clusters for the transportation of green hydrogen aims to increase supply chain efficiency while reducing transportation costs.
Electric vehicles
The budget will support infrastructure for charging and manufacturing, which will improve the EV ecosystem.
Conclusion
The budget 2024 is focusing more on improving the renewable sector of India and promoting cleaner energy. Variate solar can ensure project success and contribute to a deeper understanding of renewable energy.
