Union Budget 2024: FM announces new initiatives for nuclear, solar energy sectors

Union Budget 2024: In a move to boost India's energy sector, Finance Minister Nirmala Sitharmana in the Union Budget 2024 has announced a series of major initiatives aimed towards energy security, promoting sustainable energy, and fostering technological advancements.

“Nuclear energy is expected to form a very significant part of the energy mix for Viksit Bharat,” said Sitharaman.

The measures are set to transform the landscape of India's energy production and consumption, with a special focus on nuclear energy, renewable energy integration, and advanced thermal power technologies.

Bharat Small Modular reactors

One of the cornerstone announcements is the government's partnership with the private sector to establish Bharat Small Reactors. This initiative will focus on the research and development of Bharat Small Modular Reactors (BSMR) and newer technologies for nuclear energy.

The interim budget has earmarked R&D funding for this sector, underlining the strategic importance of nuclear energy in India's future energy mix. The move aims to position nuclear energy as a pivotal component of the "Viksit Bharat" vision.

Energy audit for renewable integration

To address the growing share of renewable energy in the national grid, the budget proposes a comprehensive energy audit. The initiative will facilitate the storage of electricity and ensure the smooth integration of renewable energy sources. By enhancing the grid's capability to handle intermittent renewable energy, the government aims to stabilise supply and boost overall efficiency.

Pumped storage policy

The budget also highlights the launch of a Pumped Storage Policy, led by a joint venture between NTPC and BHEL. The collaboration will establish a full-scale 800 MW commercial plant, using advanced pumped storage technology. The policy is expected to provide a reliable solution for energy storage, which is crucial for balancing supply and demand fluctuations in the grid.

The government has completed the indigenous technology for Advanced Ultra Super Critical (AUSC) thermal power plants. These plants promise much higher efficiency compared to conventional thermal power plants. An 800 MW commercial plant will be set up by NTPC and BHEL, with the government providing the necessary fiscal support. Additionally, the initiative is expected to stimulate the production of high-grade steel and advanced metallurgy materials, yielding substantial economic benefits.

(Source: Republicbiz)