Govt provides push to renewables with focus on storage systems in Budget 2024

Renewable energy

The government has continued to support the renewable sector with a focus on the much needed storage systems and supply chain ecosystem in the Union budget 2024-25.

While presenting the budget, Finance Minister Nirmala Sitharaman said the government would bring out a policy for promoting pumped storage projects that will help with electricity storage and facilitate smooth integration of the growing share of renewable energy with its variable and intermittent nature in the overall energy mix.

“A policy for promoting pumped storage projects will 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,” said Sitharaman on July 23.

The finance minister added that the PM Solar scheme has generated remarkable response with more than 1.28 crore registrations and 14 lakh applications. The government would further promote the scheme, considering the response, she said.

Launched in February, PM Solar scheme or PM Surya Ghar: Muft Bijli Yojana aims to install rooftop solar panels in 1 crore houses in India. The government announced an investment of over Rs 75,000 crore, which would provide up to 300 units of free electricity every month.

The Economic Survey 2023-24 tabled by the government on July 22 said India’s energy needs are expected to grow 2-2.5 times by 2047, given the growing economy, but the renewable energy sector still faces challenges.

India’s energy mix in 2022-23 was primarily dominated by fossil-fuel, accounting for almost 84 percent, including coal, oil, and natural gas combined. But the composition in the electricity sector has significantly changed with the government’s sustained push for renewable energy. The share of non-fossil power capacity stood at 45.4 percent as of May 2024 from around 32 percent in April 2014.