Budget 2025 Expectation: For Sustainable Energy Sector

India is the third-largest producer and consumer of electricity worldwide. Increased industrialization, rural electrification projects, and increased per capita consumption are expected to further increase electricity demand.
India has been using coal for power generation for decades, and coal continues to be a major energy producing fuel. In recent times, however, solar electricity has increased significantly, and now solar sourced energy stands third in electricity generation behind coal and hydro. This is primarily due to the Government’s focus on this energy source coupled with the development of technology and reduction in costs.
India has committed to augmenting non-fossil fuel based installed electricity generation capacity to over 5,00,000 MW by 2031-32. Today non-fossil fuel contributes to approximately 43% of the total installed capacity, compared to approximately 29% of a decade ago. Despite the increase in contribution, the potential of solar and wind energy is vast and is still to be harnessed.