Union Budget 2021-22 : Clean & Green Energy

Recently, Union Finance Minister Nirmala Sitharaman presented first ever Digital Union Budget 2021-22.

Finance Minister Nirmala Sitharaman focus on reliable, clean, and sustainable energy in the budget speech.

Key Points :

• Finance Minister Nirmala Sitharaman announced Hydrogen Energy Mission for generating Hydrogen from green power sources/renewable sources.

What is meaning of Hydrogen Energy from green source ?

Hydrogen, which is used renewable energy  to produce hydrogen from water, is taking off around the globe. Hydrogen energy could be future energy.

• Hydrogen Mission aims to reduce the India's Carbon footprint (reduce dependency on petroleum fuel).

• The Budget proposed to provide a Capital infusion of Rs. 1,000 crore to the Solar Energy Corporation of India and Rs. 1,500 crore to the Indian Renewable Energy Development Agency (IREDA).

• For encourage domestic production of Solar cells and Solar Panels, Sitharaman said to raise duty on Solar inverters from 5% to 20%, and on Solar lanterns from 5% to 15%.

• The domestic production of Solar cells and Solar Panels will promote 'Vocal for Local' to achieve goal of 'AtmaNirbhar Bharat'.

Additional Read : Vocal for Local

• The Finance Minister proposed to launch a revamped reforms-based result-linked power distribution sector scheme with an outlay of Rs. 3,05,984 crore over 5 years.

• The scheme will provide assistance to DISCOMS for infrastructure creation including pre-paid smart metering and feeder separation, upgradation of systems, etc., tied to financial improvements.

• Ujjwala Scheme which has benefited 8 crore households will be extended to cover 1 crore more beneficiaries.

• Government of India will add 100 more districts in next 3 years to the City Gas Distribution network.

• A gas pipeline project will be taken up in Union Territory of Jammu & Kashmir.

Above these schemes and initiatives of the Government is closure path of  Clean Energy and Green Energy under the Budget 2021-22.

Basic Facts on Renewable Energy/Green Energy  in India :

• On the line of India's commitments under the 2015 Paris Agreement to reduce greenhouse gas emissions intensity by 33 to 35% below 2005 levels, and to achieve 40% of installed electric power capacity from non-Constitutional sources by 2030.

• India decided in 2015 that 175 GW of renewable energy capacity will be installed by the year 2022.

This includes -

100 GW from Solar, 

60 GW from Wind, 

10 GW from Biomass and 

5 GW from small hydro power.

• Achievements :

+ As on 31st October 2020, India's total renewable energy installed capacity (excluding hydro power above 25 MW) had reached over 89.63 GW.

+ During the last 6 years, India has witnessed the fastest rate of growth in renewable energy capacity addition among all large economies, with renewable energy capacity growing 2.5 times and Solar Energy expanding by over 13 times.

+ Renewable energy now share over 24% of the country's installed power capacity and around 11.62% of the electric generation.

+ Now, Solar Energy price Rs. 2 per Unit, which competitive to conventional energy price.

• India is ranked fourth in Wind power, Fifth in Solar Power and Fifth in renewable power installed capacity.

• According to Central Electricity Authority's National Electricity Plan, contribution of renewable energy sources is estimated to be around 21% of the electricity demand of the country in the year 2021-22 and 24% by 2026-27.

Also Read : Budget 2021-22

Sources

PIB

News Papers