Anticipated Outlook for Renewable Sector in the Next Budget
POWER & RENEWABLE ENERGY

Anticipated Outlook for Renewable Sector in the Next Budget

India's power sector has experienced substantial growth in recent years, driven by economic expansion that has consistently raised the demand for electricity. According to the Central Electricity Authority (CEA), in the previous financial year, demand surged by more than 8 percent to reach a historic 1622 billion units. The Ministry of Power reported that the peak demand during the summer of 2024 has already reached 250 GW, up from 243 GW in 2023 and 216 GW in 2022.

The upcoming Union Budget of July 2024 is expected to continue its emphasis on renewable energy, which accounted for 71 percent of India's new capacity additions in FY24, as indicated by an article in the Economic Times.

Over the past decade, India has led a successful solar capacity expansion initiative. According to a report by the CEEW Centre for Energy Finance (CEEW-CEF), India added a record 15 GW of solar capacity in FY24, driven by declining costs and robust government backing. The government plans to build on its efforts to promote rooftop solar through the PM Surya Ghar Muft Bijli Yojana, which offers financial support for up to 3 kW of solar power per household.

To achieve its target of 500 GW from renewables by 2030, the pace of expansion needs to accelerate significantly, possibly aided by extending the concessional corporate tax rate beyond March 31, 2024, as suggested by the CEEW-CEF report.

Despite these advancements, the growth in onshore wind capacity has been modest, with only 3 GW added in FY24. Challenges such as the lack of a robust domestic equipment ecosystem and project execution delays continue to hinder progress in this sector. However, onshore wind remains crucial for achieving a net-zero power grid due to its higher energy output and consistent availability throughout the day. Implementing long-term financial mechanisms like contracts for differences could potentially expedite the integration of wind power into India's energy landscape.

India's power sector has experienced substantial growth in recent years, driven by economic expansion that has consistently raised the demand for electricity. According to the Central Electricity Authority (CEA), in the previous financial year, demand surged by more than 8 percent to reach a historic 1622 billion units. The Ministry of Power reported that the peak demand during the summer of 2024 has already reached 250 GW, up from 243 GW in 2023 and 216 GW in 2022. The upcoming Union Budget of July 2024 is expected to continue its emphasis on renewable energy, which accounted for 71 percent of India's new capacity additions in FY24, as indicated by an article in the Economic Times. Over the past decade, India has led a successful solar capacity expansion initiative. According to a report by the CEEW Centre for Energy Finance (CEEW-CEF), India added a record 15 GW of solar capacity in FY24, driven by declining costs and robust government backing. The government plans to build on its efforts to promote rooftop solar through the PM Surya Ghar Muft Bijli Yojana, which offers financial support for up to 3 kW of solar power per household. To achieve its target of 500 GW from renewables by 2030, the pace of expansion needs to accelerate significantly, possibly aided by extending the concessional corporate tax rate beyond March 31, 2024, as suggested by the CEEW-CEF report. Despite these advancements, the growth in onshore wind capacity has been modest, with only 3 GW added in FY24. Challenges such as the lack of a robust domestic equipment ecosystem and project execution delays continue to hinder progress in this sector. However, onshore wind remains crucial for achieving a net-zero power grid due to its higher energy output and consistent availability throughout the day. Implementing long-term financial mechanisms like contracts for differences could potentially expedite the integration of wind power into India's energy landscape.

Next Story
Infrastructure Urban

Arya Omnitalk Powers India’s Toll Revolution with AI-Driven Solutions

Arya Omnitalk, a leader in intelligent transportation systems, is revolutionising toll collection across India’s national highways with its advanced AI-powered Toll Management Solutions. Designed for rugged remote toll locations, the company’s cutting-edge technology ensures seamless, reliable, and secure tolling—especially during high-capacity operations exceeding 200%. By integrating real-time analytics, cyber protection, and FASTag-based cashless tolling, Arya Omnitalk’s systems are significantly reducing congestion, improving transparency, and enhancing revenue assurance. Its full..

Next Story
Infrastructure Urban

Over 800 Join Anant Raj Runathon to Mark Earth Day

Over 800 participants came together at Anant Raj Estate, Sector 63A, Gurugram, for the Anant Raj Runathon 2025—a vibrant celebration of Earth Day through fitness, community bonding, and sustainability. Curated by renowned running coach Ravinder, the event featured four categories: 10-mile and 5-mile timed runs, a 5-mile walkathon, and a 1-mile kids’ run. Runners of all ages took to the green, scenic roads of the area—some chasing personal bests, others running for a cause. The Runathon was designed to promote healthy living while raising awareness about sustainable practices. Participa..

Next Story
Infrastructure Urban

PETRONAS Lubricants, Quaker Houghton Ink Strategic Deal

In a significant step towards strengthening industrial operations in India and Malaysia, PETRONAS Lubricants India Pvt. Ltd (PLIPL) and Quaker Houghton have announced a strategic partnership aimed at delivering high-performance industrial fluid solutions to key manufacturing sectors, including steel production. The collaboration combines the strengths of both companies—leveraging PETRONAS Lubricants India’s maintenance lubricant technologies and Quaker Houghton’s deep expertise in metalworking fluids. Starting from the second quarter of 2025, Quaker Houghton will begin offering PETRONAS..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?