16 Jan 2023
Union Budget 2023-24 is expected to reflect India's climate commitments of COP26 and COP27 with decarbonization, energy transitioning, and renewable energy (RE) as the central themes. Key developments over the past years reflect the commitments -- Production Linked Incentive (PLI) scheme, electric mobility, green financing, advanced chemistry cell (ACC) manufacturing for electric vehicles, among others. However, unlike the previous Budget’s targeted focus on RE manufacturing and ancillary market development, this Budget should focus on capacity addition and integration. The much-awaited enactment of the Energy Conversation (Amendment) Bill, 2022 and RE grid integration, hints at this approach of leap frogging in the direction.There is patient anticipation among energy sector players. Keeping the goal of 500 GW and 50% non-fossil fuel energy share by 2030 in perspective, the Union Budget should target fast-track technology adoption. Moreover, India will need US$223 billion investment by 2030 to achieve this target. Therefore, the focus should be on long-term policy stability to promote investments in RE and newer emerging themes of green hydrogen, storage, electrolyzer manufacturing, etc.
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