Budget 2025: Paving the Way for a Sustainable and Energy-Secure India – EQ
In Short : Budget 2025 is expected to boost India’s energy sector with increased renewable investments, green hydrogen incentives, and support for battery storage and EVs. Key measures may include power distribution reforms, carbon market frameworks, and expanded PLI schemes for domestic manufacturing. These initiatives aim to enhance energy security, sustainability, and accelerate India’s clean energy transition.
In Detail : Budget 2025 is set to play a crucial role in shaping India’s energy sector, with a strong focus on clean energy and sustainability. The government is expected to announce increased investments in renewable energy projects, particularly in solar, wind, and hydro power. These measures will help India progress towards its ambitious renewable energy targets while ensuring energy security.
A major emphasis is likely to be placed on green hydrogen, with incentives and policy support aimed at scaling up production and infrastructure. This aligns with India’s goal of becoming a global hub for green hydrogen and reducing reliance on fossil fuels. The budget may also introduce financial support for electrolysis technology and R&D to make green hydrogen more cost-effective.
Battery storage and electric mobility are expected to receive a significant push, with incentives for domestic battery manufacturing and expansion of EV charging networks. The government may also extend tax benefits and subsidies for electric vehicles to accelerate adoption. Strengthening battery storage infrastructure will be key to ensuring grid stability as renewable energy capacity grows.
Reforms in power distribution are anticipated to improve the financial health of DISCOMs and enhance grid modernization. Measures such as smart metering, tariff rationalization, and improved payment mechanisms could help address inefficiencies in the power sector. Strengthening transmission infrastructure will also be a key focus to support large-scale renewable energy integration.
The budget may introduce policies to develop a robust carbon market framework, encouraging industries to adopt sustainable practices. Incentives for energy efficiency, carbon trading mechanisms, and green financing options are likely to be explored. These steps will support India’s commitment to achieving net-zero emissions and enhancing environmental sustainability.
Additionally, the government is expected to expand the Production Linked Incentive (PLI) scheme for solar modules, wind turbines, and battery storage. Strengthening domestic manufacturing will not only reduce import dependence but also create employment opportunities in the clean energy sector. These measures will position India as a global leader in the renewable energy transition while ensuring economic growth and sustainability.
