ICRA’s proposes long-term financing for power and renewables at competitive rates in Budget

ICRA said in its pre-Budget expectations report that an adequate long-term financing infrastructure at competitive rates is critical to India’s sustainable and renewable goals.

The Union Budget for FY23 will be presented to the Parliament on February 1, 2022.

Considering the growing share of renewables in the electricity generation mix, the rating agency said incentives and relevant policy measures are necessary to promote investments in the energy storage sector.

In addition, policy measures are required to revive the stranded gas-based projects, which would enable the availability of balancing power sources, it stated.

In order to promote the manufacturing of solar modules, the Centre must increase the production-linked incentives it offers to manufacturers, the report noted.

There is a need for increased budgetary allocations for power distribution companies to develop transmission infrastructure (at both intra-state and inter-state levels) to evacuate power from regions with high renewable energy potential. 

In his speech at the COP26 meeting in Glasgow, Prime Minister Narendra Modi said India intends to increase non-fossil energy capacity to 500 GW by 2030, as well as to meet 50 per cent of the country’s energy needs through renewable energy sources.

Additionally, India intends to reduce its carbon emissions by 1 billion tonnes by 2030, and eventually become a net zero carbon emitter by 2070.

Connect with Power Insight:   Facebook  |  LinkedIn  |  Twitter