The Union Budget for FY25 focuses on identifying the appropriate pathways to achieve energy transition along with a roadmap for decarbonising hard-to-abate sectors such as refineries and steel making.

Another thrust area is leveraging the latest technologies in nuclear energy and thermal power generation. Besides, it also continues to focus on developing energy storage systems by proposing a policy on pumped storage systems (PSPs).

“In the interim budget, I had announced our strategy to sustain high and more resource-efficient economic growth, along with energy security in terms of availability, accessibility and affordability. We will bring out a policy document on appropriate energy transition pathways that balances the imperatives of employment, growth and environmental sustainability,” Finance Minister Nirmala Sitharaman said in her budget speech in Lok Sabha on Tuesday.

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 & intermittent nature in the overall energy mix, she added.

In line with the announcement in the interim budget, PM Surya Ghar Muft Bijli Yojana has been launched to install rooftop solar plants to enable 1 crore households to obtain free electricity up to 300 units every month. The scheme has generated remarkable response with more than 1.28 crore registrations and 14 lakh applications, and we will further encourage it.

Ashwin Jacob, Partner & Industry Leader, Energy, Resources & Industrials at Deloitte India, said the government’s intent to establish a policy to support pump storage projects as part of a concerted focus on affordable energy transition pathways.

While the specifics of the policy will need to be studied, this announcement is a highly welcome measure. It signifies a significant step towards increasing the contribution of round-the-clock renewable energy in India’s energy mix, thus helping address the intermittency issues associated with solar and wind power. This will enhance energy security and grid resilience, fostering a more sustainable and self-sufficient energy ecosystem.

Power Generation

Sitharaman said that 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 (1) setting up Bharat Small Reactors, (2) research & development of Bharat Small Modular Reactor, and (3) research & 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.

The development of indigenous technology for Advanced Ultra Super Critical (AUSC) thermal power plants with much higher efficiency has been completed. A joint venture between NTPC and BHEL will set up a full scale 800 MW commercial plant using AUSC technology. The government will provide the required fiscal support.

“Moving forward, development of indigenous capacity for the production of high-grade steel and other advanced metallurgy materials for these plants will result in strong spin-off benefits for the economy,” the Finance Minister said.

Related Topics