Union Budget 2025: Modi Govt. Poised to Unveil Mega Battery Storage Plan

By siliconindia  |  Wednesday, 15 January 2025, 10:48:43 AM IST

Union Budget 2025: Modi Govt. Poised to Unveil Mega Battery Storage Plan
The Modi government is all set to announce an unprecedented battery storage plan as part of the Union Budget for the financial year 2025-26. Sources revealed that Finance Minister Nirmala Sitharaman will present the Union Budget on February 1, and this time, renewable energy is all set to be one of the prominent focuses in the proposal.
The sources suggest that the government may offer tremendous investment support to the companies dealing with renewable energy sectors, especially in respect of battery storage initiatives. To achieve this goal, the storage capacity of renewable energy is a must requirement as India has started to move ahead with the green energy push.
As part of this effort, renewable energy firms could be made to include battery storage capacity as a mandatory aspect of all new projects. Estimated forecasts show that India's battery storage capacity would skyrocket from the current 220 MW to over 220 GW within five years. That growth would further help in better integration of renewables with the national grid.
The government is also expected to announce a comprehensive renewable energy zone under the Budget. This zone could encompass various renewable energy projects, including solar, wind, and green hydrogen initiatives. States are likely to compete for the right to host these renewable energy zones, which will stimulate regional investments and development.
The Budget may also introduce incentives for banks and financial institutions, encouraging greater financial support for the renewable energy sector, further boosting its growth trajectory.
Recent reports indicate that India’s renewable energy installed capacity surged by 15.84% to 209.44 GW by December 2024, up from 180.80 GW a year ago. The solar power sector led this growth, contributing 24.54 GW, while wind power added 3.42 GW. With Prime Minister Narendra Modi’s target of achieving 500 GW of renewable energy by 2030, these initiatives in the Union Budget are expected to play a pivotal role in achieving that ambitious goal.

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