Finance Minister Nirmala Sitharaman in her first Budget speech of the BJP-led NDA 3.0 government presented nine priorities for the pursuit of ‘Viksit Bharat’ and placed energy security sixth in the priority list. FM in her speech said that the government’s strategy is to sustain high and more resource-efficient economic growth, along with energy security in terms of availability, accessibility and affordability.
The government will bring out a policy document on appropriate energy transition pathways that balances the imperatives of employment, growth and environmental sustainability. Prashant Mathur, CEO Saatvik Energy (Solar module manufacturer) said, “The FY25 budget is pragmatic and progressive with adequate focus on energy transition, which is crucial to build a sustainable future.”
FM in her speech said that a policy for promoting pumped storage projects will also be brought out for electricity storage and facilitating smooth integration of the growing share of renewable energy with its variable and intermittent nature in the overall energy mix.
“Pumped Hydro storage in budget, is a key step for supporting long-duration energy storage technologies. We welcome efforts for support for hard-to-abate sectors for improving energy efficiency and adopting clean energy. Recent tender results for RE+ storage have demonstrated that India is poised to adopt large-scale "Firm and Dispatchable Renewable Energy" (FDRE) coupled with energy storage for such decarbonisation effort,” said Dr Rahul Walawalkar, President of India Energy Storage Alliance (IESA) and President and Managing Director of Customized Energy Solutions India.
While emphasising on the importance of Nuclear Energy in the energy mix the minister said, “Nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat. Towards that pursuit, our government will partner with the private sector for setting up Bharat Small Reactors, research and development of Bharat Small Modular Reactor, and research and development of newer technologies for nuclear energy. The R&D funding announced in the interim budget will be made available for this sector.”
She added, that a roadmap for moving the ‘hard to abate’ industries from ‘energy efficiency’ targets to ‘emission targets’ will be formulated. Appropriate regulations for the transition of these industries from the current ‘Perform, Achieve and Trade’ mode to the ‘Indian Carbon Market’ mode will be put in place. An investment-grade energy audit of traditional micro and small industries in 60 clusters, including brass and ceramic, will be facilitated.
Financial support will also be provided for shifting them to cleaner forms of energy and implementation of energy efficiency measures.
“The energy efficiency investments in MSMEs to enhance their competitiveness will be a game-changer, empowering small and traditional industries to embrace green transitions. The strategic shift for 'hard to abate' industries from just energy efficiency implementation to GHG emission reduction targets is a forward-thinking move that aligns with global climate goals. We are eagerly anticipating the upcoming policy document on appropriate energy transition pathways, which promises to balance the imperatives of employment, growth, and environmental sustainability,” said Satish Kumar, President and Executive Director, AEEE.
Finance Minister Nirmala Sitharaman's FY25 budget outlines a clear roadmap for advancing 'Viksit Bharat' with a robust focus on energy security, sustainability, and decarbonization. The emphasis on energy transition, highlighted by initiatives such as pumped storage projects and support for renewable energy integration, underscores India's commitment to a greener future. Furthermore, strategic investments in nuclear energy and efforts to transform 'hard to abate' industries towards emission reduction targets signify proactive steps towards achieving global climate goals.
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