The Union Budget 2024-25, presented by Finance Minister Nirmala Sitharaman on July 23rd in the Parliament, underscores the government’s commitment to energy security and sustainability. By introducing comprehensive policies for energy transition, promoting renewable energy initiatives like the PM Surya Ghar Muft Bijli Yojana, and supporting advanced technologies in nuclear and thermal power, the government aims to create a resilient and sustainable energy framework, she added.
She emphasized the importance of energy security, sustainable growth, and environmental responsibility. The budget introduces a series of initiatives aimed at transitioning to cleaner energy sources, promoting renewable energy, and enhancing the efficiency and sustainability of energy usage.
Energy Transition Strategy
1. Policy Document on Energy Transition:
– The government will release a comprehensive policy document detailing appropriate energy transition pathways. This document will aim to balance the imperatives of employment, growth, and environmental sustainability, ensuring a resource-efficient economic growth trajectory.
PM Surya Ghar Muft Bijli Yojana
2. Rooftop Solar Initiative:
– Scheme Launch: The PM Surya Ghar Muft Bijli Yojana was launched to install rooftop solar plants, providing free electricity up to 300 units per month to 1 crore households.
– Response and Expansion: The scheme has seen remarkable uptake with over 1.28 crore registrations and 14 lakh applications. The government plans to further encourage and expand this initiative.
Pumped Storage Policy
3. Electricity Storage Policy:
– A policy to promote pumped storage projects will be introduced. These projects will facilitate the storage of electricity and ensure the smooth integration of renewable energy, which often has a variable and intermittent nature, into the overall energy mix.
Research and Development in Nuclear Energy
4. Small and Modular Nuclear Reactors:
– Partnerships: The government will partner with the private sector to:
1. Set up Bharat Small Reactors.
2. Research and develop Bharat Small Modular Reactors.
3. Innovate newer technologies for nuclear energy.
– Funding: The R&D funding announced in the interim budget will be allocated to support these initiatives, emphasizing nuclear energy’s role in India’s future energy mix.
Advanced Ultra Super Critical Thermal Power Plants
5. Indigenous AUSC Technology:
– Development: The development of indigenous technology for Advanced Ultra Super Critical (AUSC) thermal power plants has been completed.
– Implementation: A joint venture between NTPC and BHEL will establish a full-scale 800 MW commercial plant using AUSC technology. The government will provide necessary fiscal support.
– Economic Benefits: The development of indigenous capacity for high-grade steel and advanced metallurgy materials for these plants is expected to have significant economic spin-offs.
Roadmap for ‘Hard to Abate’ Industries
6. Emission Targets:
– Transition: A roadmap will be formulated to transition ‘hard to abate’ industries from ‘energy efficiency’ targets to ’emission targets’.
– Regulations: The transition from the current ‘Perform, Achieve and Trade’ mode to the ‘Indian Carbon Market’ mode will be regulated to ensure compliance and effective reduction in emissions.
Support for Traditional Micro and Small Industries
7. Energy Audits and Cleaner Energy:
– Energy Audits: Investment-grade energy audits will be facilitated for traditional micro and small industries in 60 clusters, including brass and ceramic sectors.
– Financial Support: Support will be provided for shifting these industries to cleaner energy forms and implementing energy efficiency measures. The scheme will be replicated in another 100 clusters in the next phase.
Budget 2024-25 prioritizes energy transition, renewable energy adoption, and advanced technologies, ensuring a secure, sustainable, and environment-friendly energy landscape for India.
–Srinivasa Charyulu Adimulam
