Budget 2024: Focus Back On Thermal Power, Modular Nuclear Projects

Even as the Union government's focus on renewable energy continues, Finance Minister Nirmala Sitharaman announced plans to develop high-efficiency, advanced supercritical thermal power projects in the country. This technology has already been developed indigenously through a joint venture between NTPC Ltd. and Bharat Heavy Electricals Ltd.

“The joint venture will set up a full-scale 800-megawatt commercial plant using advanced ultra-supercritical technology,” the Finance Minister said in her budget speech today. “The government will provide the required fiscal support,” Sitharaman said.

As part of this development, the minister said that the indigenous production of high-grade steel and other advanced metallurgical materials for supercritical plants will yield significant economic benefits.

Sitharaman also outlined plans to develop modular nuclear reactors as part of the clean energy transition. “Nuclear energy is expected to form a very significant part of the energy mix going forward,” she said.

To advance this goal, the government will partner with the private sector to set up Bharat small reactors, pursue research and development of these reactors, and explore newer technologies for nuclear energy. “The R&D funding announced in the interim budget will also be available for this sector,” Sitharaman said.

A roadmap will be formulated to move hard-to-abate industries from energy efficiency targets to emission targets. Appropriate regulations will be established to transition these industries from the current Perform, Achieve, and Trade (PAT) mode to the Indian carbon market mode.

Pumped Storage Policy Planned

The government will introduce a pumped storage policy to promote electricity storage and facilitate the smooth integration of the growing share of renewable energy, the Finance Minister announced.

Pumped hydro storage helps conserve energy and store electricity, mitigating the intermittency of renewable energy sources like solar and wind power, which are limited to daytime and nighttime operations, respectively.

Energy Audits For MSMEs

As part of its support for traditional micro and small industries, the government will facilitate investment-grade energy audits in 60 clusters, including brass and ceramic clusters.

“Financial support will be provided for shifting these industries to cleaner forms of energy and implementing energy efficiency measures. The scheme will be replicated in another 100 clusters in the next phase,” Sitharaman said.