Key Takeaways from the Union Budget 2024: Focus on Renewable Energy and Nuclear Power

Key Highlights

• Pradhan Mantri Surya Ghar Muft Bijli Yojna:
  • Objective: Provide subsidized rooftop solar installations to one crore households.
  • Allocation: Nearly ₹10,000 crore, more than double the ₹4,970 crore spent last year.
  • Benefits: Offers 300 units of free electricity per household.
  • Cost to Households: Households pay a minimum of ₹20,000 depending on the power capacity, which can be defrayed by a low-interest, collateral-free loan.
  • Eligibility: Only houses with a suitable roof and an existing connection to the grid are eligible. Consumers must pay for all net power supplied and consumed via the grid.
  • Response: Over 1.28 crore registrations reported.
• Nuclear Energy Initiatives:
  • Small Modular Reactors (SMRs):
    • Investment: Government partnership with the private sector to set up Bharat Small Reactors and develop Bharat Small Modular Reactors.
    • Capacity: SMRs provide up to 300MW of power.
    • Significance: Expected to play a significant role in India’s energy mix for a developed Bharat.
    • Research and Development: Funding announced in the interim Budget will be available for SMR research and development.
• Advanced Ultra Supercritical (AUSC) Thermal Power Plant:
  • Proposal: Development of an AUSC thermal power plant in collaboration with NTPC and Bharat Heavy Electricals Ltd. (BHEL).
  • Status: Restated proposal from 2018, with no specific budgetary allocations mentioned.

Significance

• Boost to Renewable Energy: The substantial allocation to the Pradhan Mantri Surya Ghar Muft Bijli Yojna underscores the government's commitment to expanding renewable energy infrastructure and reducing reliance on conventional energy sources.
• Increased Accessibility: By providing subsidized solar installations and low-interest loans, the scheme makes clean energy more accessible to a larger segment of the population, promoting sustainable energy practices at the household level.
• Nuclear Energy Development: Investment in SMRs highlights the government’s strategy to diversify the energy mix and leverage nuclear energy’s potential to provide reliable and large-scale power.
• Technological Advancements: The focus on developing SMRs and AUSC thermal power plants aligns with global trends towards advanced and efficient energy technologies, positioning India as a leader in clean energy innovation.

Conclusion

The Union Budget 2024 emphasizes a continued commitment to clean energy initiatives, particularly through the significant allocation to the Pradhan Mantri Surya Ghar Muft Bijli Yojna and investment in nuclear energy technologies. These initiatives aim to enhance energy accessibility, promote sustainability, and support India’s transition to a diversified and resilient energy mix.