Budget 2022- Powering the domestic clean energy sector, empowering global #NetZero targets

Published On :

28 February 2022

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Mitigating climate change while battling the pandemic, Budget 2022 opens avenues for all sectors, especially the green energy sector, to take charge & nurture incentives for all stakeholders

Reinforcing strong capital formation in the economy to be led by digitalization, the budget disclosed a multi-faceted plan to further strengthen an ‘ aatamnirbhar’ India. After the latest commitments in the COP26 summit, this year’s budget proves to be pivotal for the domestic energy sector to take charge and bring India closer to its #NetZero goals.

India is the third-largest energy-consuming country in the world, now responsible for a 10% increase in the global energy demand in the last 2 decades as well. As we strengthen our initiatives across sectors to empower industrialization & urbanization, we also aggravate carbon emissions directing us towards the pressing need to ensure carbon-friendly production & consumption of energy, now more than ever.

This push from the Government will not only benefit all energy producers in India but will also help businesses, institutions, and citizens to participate and pioneer change in their respective ways. The key highlights for the energy sector include the production-linked incentive (PLI) scheme for renewable energy including batteries to pace up domestic manufacturing, systematic lending to renewable project initiatives, strengthened provisions of further capital to Solar Energy Corporation of India (SECI), and the Indian Railways Energy Development Agency (IREDA).

The projected 9.2% economic growth is largely expected to be steered by clean energy interventions, acknowledging and powering the energy transition & climate action as the core pillars for the AmritKaal.

In an attempt to put India on the global map with its clean energy initiatives, the following strategic allocations promote a cleaner India from both, functional & behavioral outlooks.

What does this have in store for domestic energy producers?

The focus to prioritize clean mobility and green energy in Budget 2022 stimulates the following for energy developers-

  • Public and private investment in the renewable energy sector
  • Expansion of RE technologies
  • Development of transmission infrastructure for smooth & reliable power supply
  • Deployment of battery storage resources
  • Regulatory, financial & taxation compliances to promote fiscal incentives
  • Promotion of RPO for industries and distribution utilities
  • Reduction of tariffs to reinforce the usage of green hydrogen

ReNew; India’s largest Renewable Energy developer unlocks RE’s potential to make this vision a reality

Reaching a total capacity of 7.3 GW in January 2022, the highest till date, ReNew is positive to disrupt this space with its expertise and unique offerings, catering to all sectors. As Renew Green Solutions, the B2B wing of ReNew gears up to help businesses in India turn on the #GreenSwitch, the commitment to net-zero goals only strengthens.

We enable & encourage businesses to take their first steps towards a #CarbonNeutral environment by helping them kickstart their #GreenJourney with a seamless transition process. Every industry has the potential to make a significant impact by just starting small. In an attempt to help them have a competitive edge and an attractive portfolio complying with RE obligations, we offer customized solutions to businesses across India.

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