India has made substantial plans for the green energy sector in its budget to align with the global emphasis on sustainable energy and decrease its carbon footprint.
The government unveiled a range of initiatives aimed at promoting green fuel, environmentally friendly agriculture, eco-friendly transportation, sustainable building practices, and energy-efficient equipment.
Furthermore, with India holding the current G20 Presidency, its emphasis on green energy will carry greater influence.
The government announced a budget allocation of Rs 19,700 crore for the newly established National Green Hydrogen Mission, which it claims will facilitate a shift towards a low carbon economy, reduce dependence on fossil fuels, and enable India to take technological and market leadership in the emerging sector.
As reported by The Hindu, the government has set a target of producing 500 million metric tonnes of green hydrogen annually by 2030.
Girish R Tanti, Vice Chairman of Suzlon Energy, stated, “The Union Budget presents a favorable outlook for the renewable energy sector in India. The allocation of Rs 35,000 crore towards green energy transition shows the country’s commitment to a sustainable future and is a step in the right direction.”
Tanti further added, “The government’s dedication to expanding the utilization of renewable energy is commendable and will play a vital role in reducing carbon emissions and addressing the effects of climate change. The National Green Hydrogen Mission will support our pursuit towards net zero emissions.”
The budget has allocated Rs 35,000 crores for priority capital investment towards energy transition, achieving net zero emissions, and enhancing energy security, under the jurisdiction of the Union Ministry of Petroleum and Natural Gas.
Deepak Sood, Secretary General of industry body ASSOCHAM, stated, “The budget’s emphasis on financing green energy through flagship programs such as the National Green Hydrogen Mission, integrating renewable energy into the grid, and promoting the electrification of the automobile industry are the standout features of the budget and provide a boost to the energy transition.”
Given India’s large size and significant growth and development potential, it is expected to experience an increase in energy demand that surpasses that of any other country in the coming decades.
Hence, it is crucial that the majority of this new energy demand is met through low-carbon, renewable sources. India’s commitment to reaching net zero carbon emissions by 2070 and to having 50% of its electricity supplied by renewable sources by 2030 represents a significant milestone in the global effort to address climate change.
The Indian renewable energy market is considered the fourth most appealing in the world. As of 2020, India was ranked fourth in wind power, fifth in solar power, and fourth in overall installed renewable energy capacity.
The growth of installed renewable energy generation capacity has picked up over recent years, with a compound annual growth rate of 15.92% from FY16-22. India is the market with the fastest increase in renewable electricity, and it is expected that new capacity additions will double by 2026, according to the India Brand Equity Foundation.
Jose Jacob, Managing Director of Antony Waste Handling Cell, stated, “As India holds the G20 Presidency until November 2023, the emphasis on embracing green energy and the promotion of BioCNG is positive. We are pleased with the attention the budget has given to our industry, especially with regard to scrapping old and polluting vehicles, the importance of waste segregation, and the preparation of cities to raise funds from the Municipal Bond market. The overarching theme highlights the country’s dedication to adopting sustainable technologies and increasing focus on producing green energy.”
As of October 2022, India’s installed renewable energy capacity, including hydro, was 165.94 GW, accounting for 40.6% of the total installed power capacity. The country aims to reach 450 GW of installed renewable energy capacity by 2030, with approximately 280 GW (over 60%) expected to come from solar energy.