This year’s Union Budget wishlist for renewable energy (RE) by experts who track the sector includes a number of incentives across solar, wind, and energy transition areas including solar rooftops, solar pumps, local manufacturing, offshore wind, and green hydrogen.
According to Somesh Kumar, partner and leader, power and utilities, EY India, there is certainly a need to support the wind industry which has the longest history of contributing to the RE capacity.
“The wind industry compared to solar has more domestic components and relatively provides more jobs. However, there are fewer wind auctions in light of lower solar tariffs. It is time to enforce wind renewable purchase obligation (RPO) or a minimum wind procurement to keep the industry live,” said Kumar.
He said that the country needs to have a long-term green hydrogen roadmap of up to 2030, while some financial support should come for demonstration projects.
Regarding offshore wind energy, Kumar said that it needs huge support to set up at least 5-10 commercially proven role models. “Since the tariffs are likely to be higher due to higher capex, state support is essential in early days before it sustains on its own,” he added.
Speaking on what could this year’s Budget hold for the sector, Amit Kumar, partner – clean energy, PwC India, said that it could focus on provision of concessional loans for farmers wanting to set up decentralised power plants under Component A of the PM-KUSUM scheme.