India Budget 2025: A Focus on Renewable Energy and Battery Production

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Renewable Energy and Battery Manufacturing to Character India Budget 2025

The government has set ambitious targets for the renewable energy sector, therefore the Union Budget 2025 will likely be aimed at enhancing renewable energy. After crossing the 200 GW milestone, the next target will be to reach 500 GW by the year 2030. In the upcoming budget, it is very likely that considerable strides will be made to further the National goal. The finance minister along with Energy Sector experts have called out for attention to be put towards grid stabilization through enhanced battery energy systems and improved renewable energy utilization.

Bottlenecks in Increasing the Global Manufacturing Capacity

Reaching a target of 500 GW of renewable energy by 2030 is a tall order, especially when domestic manufacturing capacity is as low as it is today. This places a heavy burden on imports and trade, rather than focusing on sustainability. The implementation of major measures in the Union Budget to yield increased domestic production is something Sriram Ramakrishnan, head of energy systems at Reliance New Energyhttps://en.wikipedia.org/wiki/Reliance_Power expects from the Finance Minister as well. He further added that although a target was set at 500 GW, the industry is currently only managing to add 25 GW out of the target 60 that has been set on an annual basis.

Focusing on Battery Storage Capacity

Improving battery energy storage is important in order to expand renewable energy growth, and a step in the right direction is the government’s decision to add batteries to the Production Linked Incentive scheme. There is however an even greater need to strengthen the production of advanced chemistry cells (ACC). If swift action is not taken, reliance on imports will continue, which hinders growth in the renewable energy sector. Lastly, the high cost is an important issue that should be dealt with to allow citizens access to renewable energy.

Increasing Domestic Production of Battery materials

Currently, approximately 99 % of battery materials used in India are imported, mostly from China which presents a great risk. This calls for increased local production of battery materials, which comes with its own challenges such as heavy investments and proper motivation for companies. Reports indicate that the government is planning to introduce a PLI scheme to the tune of ₨9000 crore for battery manufacturing, which could be brought forward in the union budget.

The Union Budget 2025 is anticipated to transform the renewable energy landscape in India by fostering a self-reliant energy ecosystem and overcoming these barriers.