Union Budget 2026: Infrastructure readiness, investments in power transmission -- Energy sector's expectations ahead of Feb 1

Finance Minister Nirmala Sitharaman is set to present the Union Budget 2026-27 on February 1, a key event for markets, businesses, and households for tracking tax changes, spending plans, and economic signals. The Union Budget sets the government’s economic direction for the year ahead. It answers how it plans to grow the economy, support citizens, and manage public finances.

As India races toward its 500 GW renewable energy (RE) target by 2030, the focus is steadily shifting from headline investment commitments to execution on the ground, including infrastructure readiness, grid stability, and the availability of skilled manpower. The upcoming Union Budget 2026 is being seen as a pivotal moment to ensure that India’s clean energy ambitions move beyond paper plans and translate into reliable, scalable power generation.

“As India advances towards its target of 500 GW of clean energy capacity by 2030, the primary constraint is no longer intent or capital, but the availability of highly skilled and certified professionals to build, operate, and optimise renewable energy assets at scale,” says Praveen Kakulte, CEO of POWERCON Group.

“The ambition of RE capacity addition is yet to be supported with the requisite skills to deploy and manage increasingly complex renewable energy systems.” Kakulte adds that Budget 2026 must prioritise outcome-driven skilling initiatives, including the creation of well-regulated Centres of Excellence to develop a new generation of highly trained “RE Commandos” capable of operating in real-world grid and on-ground conditions.

Strengthening India’s energy backbone will be equally critical. Kartik Daftari, Managing Director and CEO of Hi-Tech Radiators, says the budget should push investments in power transmission, grid modernisation, and energy storage infrastructure.

“As renewable capacity scales rapidly, strengthening high-voltage networks and storage-led grid flexibility will enhance system reliability and efficiency,” Daftari notes.

“Streamlining regulations, expanding access to long-term financing, and rationalising indirect taxes will also help improve ease of doing business while balancing industrial growth with sustainability goals.”

Industry experts stress that large-scale renewable deployment will depend on execution quality, domestic manufacturing strength, and clear long-term market signals.

“Focus must shift to grid readiness, storage integration, domestic manufacturing, and execution quality,” says Arif Aga, Director at SgurrEnergy.

From an industry perspective, Aga highlights the need for continued policy support for transmission infrastructure, including the Green Energy Corridor, incentives for emerging technologies, and backing for FDRE and hybrid projects to ensure grid stability. He adds that greater clarity on long-term storage market mechanisms, along with streamlined approvals and faster execution timelines, would significantly improve project bankability and delivery certainty.

Aga also underlines the importance of data-driven planning, robust resource assessment, and independent technical oversight, noting that these elements reduce project risk, improve performance outcomes, and attract long-term capital.