Renewable industry demands incentives in Union Budget 2022

The Union Budget 2022 is expected to present efficient financial incentives and provisions for the renewable sector


The upcoming budget comes in high hopes by the Energy sector, that it will offer the much-needed push to revamp consumer confidence in renewable energy sources. Industry chamber, Federation of Indian Chambers of Commerce and Industry (FICCI) said that the Union Budget 2022-23 can set a path to recovery this year, provided with proper resource allocation.  It is also expected that the upcoming budget will give more clarity on the tenure of Basic Customs Duty (BCD) on the import of solar PV cells and modules. The growth of the production-linked incentive (PLI) scheme is essential to boost domestic manufacturing. Additionally, people are also expecting the government to provide a financial stimulus for producing Green Hydrogen and making India a global manufacturing hub for Electrolysis to generate green hydrogen. The energy transition is being pushed by climate change through establishing carbon markets and ancillary services markets which would fund the climate transition by pricing the Electric Vehicles, grid stability, and battery storage.