India has made significant strides in clean energy over the past decade, reflected in growing budget allocations for renewable energy.
Budget allocations, except in 2015 and 2023, have often been underutilized, leading to lower revised estimates.
Launched in 2019, the PM-KUSUM scheme aimed to install solar irrigation pumps and grid-connected plants, but has seen limited success.
The COVID-19 disruptions highlighted the need for energy transition, as supply chains for coal, oil, and gas were impacted.
India pledged at COP26 in 2021 to source half of its energy from renewables within five years.
The 2021 Budget introduced ₹18,100 crore for battery storage and ₹4,500 crore for solar manufacturing.
The 2022 Budget raised solar support to ₹19,500 crore.
To reduce reliance on China, India imposed a 40% customs duty on solar modules and 25% on cells, which slowed solar installations due to rising prices.
Despite 46% renewable capacity, 70% of India’s power output still comes from coal.
Experts stress the importance of grid-scale battery storage to balance intermittent renewable energy and reduce coal reliance.
To boost local production, India exempted 12 critical minerals and 35 capital goods from customs duties.
India needs to lead in creating a fair and sustainable framework for critical minerals, especially as the U.S. steps back from leadership in this area.
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