Indian Budget 2023-24 series: Clean Energy
The clear focus for transforming India into the next clean energy powerhouse is evident from the provisions present in the recently announced union budget. You can check out the previously posted blog from the Indian Budget 2023-24 series which talks about the plans and incentives for giving a boost to the Electric vehicles and the auto industry here. Below are the key announcements for the development of the clean energy sector with major focus lying on promoting green hydrogen from the budget:
- Annual production of 5 MMT under Green Hydrogen Mission to be targeted by 2030.
- $4.4 Bn outlay for energy security, energy transition and net zero objectives.
- Budget provides viability gap funding for setting up of battery energy storage of 4,000 MWh.
These provisions would lead to kick-starting Hydrogen economy and support battery energy storage as well as the EV industry.
The focus on green energy in India’s budget for 2023-24 presents a huge opportunity for India to spur innovation and experience immense growth in multiple sectors, including the automotive industry, making India a leader in sustainable transportation.
The target of annual production of 5 MMT under the Green Hydrogen Mission by 2030 and the $4.4 Bn outlay for energy security and energy transition will drive the demand for eco-friendly and energy-efficient vehicles. Along with Hydrogen, the government also plans to strengthen the energy storage sector with viability gap funding for establishing a capacity of 4000MWh.
In 2022, Reliance Industries Ltd. pledged $75 Bn with plans to make India a hydrogen hub. RIL owner, Mukesh Ambani has vowed to produce green hydrogen at $1/kg, with current hydrogen costs of approximately $6/kg and plans to achieve this target before the end of the decade. All these investments and incentives for the clean energy sector by both the public and private entities will have a huge impact on India becoming a clean and green energy leader globally.
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