Budget 2023: Sops for clean energy storage and power distribution likely

The Union Budget 2023-24 is likely to focus on clean energy storage and the power transmission sector, sources aware of the development told Business Today TV. In addition, the outlay for the flagship revamped distribution sector scheme (RDSS) to cover more households with prepaid smart meters and reduce aggregate technical and commercial (AT&C) losses is also set to be hiked.

 The revamped distribution scheme was formulated by the government to help power distribution companies to improve their operational efficiencies and finances by providing result-linked financial assistance for strengthening supply infrastructure.

The power ministry has sought a higher allocation of Rs 15,000 crore, up from Rs 7566 crore in this fiscal, for the scheme.

With India aiming to achieve carbon neutrality by 2070, the Budget may also see the introduction of a viability gap funding scheme for battery storage.

Battery energy storage systems are rechargeable battery systems that store energy from solar arrays or the electric grid.

India is the world's third largest producer of renewable energy, with 40 per cent of its installed electricity capacity coming from non-fossil fuel sources.

The global power sector is undergoing an accelerated transformation due to technological innovations and response to climate change protocols. India has committed to producing as much as 40 per cent share of its power from non-fossil fuel sources.