Energy Security as Priority in Budget FY 25

Economic Budget for FY 24-25 was presented by the Indian Finance Minister, Mrs. Nirmala Sitharaman on 23rd July 2024. The 9 priority sectors mentioned in the Budget include ‘Energy Security’, some of the others being Research & Development (R&D), Human Resource Development, infrastructure, urban development, and manufacturing & services.

Budget 2024: Push for Thermal & Nuclear Power Generation

Union Budget 2024 prioritised national energy independence, and key announcements with regard to thermal power and nuclear power were made in the Finance Minister’s Budget speech.

First-ever 800 MW AUSC Thermal Plant; 2,400 MW Bihar Thermal Plant Announced

Union Budget 2024-25 mentioned setting up an Advanced Ultra-Supercritical (AUSC) thermal power plant in Sipat, Chhattisgarh. As per Ministry of Heavy Industries’ (MHI) website, this will be “…world’s first 800 MW AUSC Technology Demonstration Plant (TDP) is planned under the aegis of the Ministry of Power (MoP) and NTPC”.

In her speech, Mrs. Sitharaman, said, “A joint venture between NTPC and BHEL will set up a full scale 800 MW commercial plant using AUSC technology. The government will provide the required fiscal support”. The timeline for the completion of this project was not mentioned.

The technology for this power plant has been developed by Bharat Heavy Electricals Limited (BHEL), Indira Gandhi Centre for Atomic Research (IGCAR) and NTPC.

AUSC thermal power plants run at 300 bar pressure and around 710-720 degrees Celsius, functioning with efficiency of about 46%. This is significantly higher than the 32% average efficiency of thermal power plants.

Apart from the AUSC-based plant, a Rs. 21,400 crore thermal plant has been announced in the Union Budget 2024-25. This 2,400 MW plant will come up in Pirpainti, Bihar.

Small Modular Nuclear Reactors to be Developed in Partnership with Pvt. Sector

Small Modular Nuclear Reactors (SMRs), which are essentially Pressurised Heavy Water Reactors (PHWRs) of about 300 MW power generation capacity, were also mentioned during the Budget speech. “…Government will partner with the private sector for setting up Bharat Small Reactors, research and development of Bharat Small Modular Reactors, and research and development of newer technologies for nuclear energy”, said the Indian Finance Minister.

SMRs are modular in nature, meaning that they can be installed and assembled quickly and at a lower cost as compared to traditional nuclear reactors.

She elaborated that this move is targeted to increase the share of nuclear energy in India’s energy mix. Currently, nuclear power contributes 3% to India’s energy mix, which the Government plans to increase to 9% by 2047.

Funds Earmarked to Further Renewable Energy Generation; Energy Transmission & Distribution

Ministry of New and Renewable Energy Gets Rs. 19,100 Cr., Solar Energy gets Biggest Share

Ministry of New and Renewable Energy (MNRE) has been allotted a total of Rs. 19,100 crore in the Union Budget 2024-25. Out of this, the total amount earmarked for the developement of solar power is Rs. 16,394.75 crore, while Rs. 800 crore has been allotted for the development of wind energy. National Green Hydrogen Mission (NGHM) has been allotted Rs. 600 crore in the budget, while Rs. 300 crore will be spent on ‘Bio-energy programme’.

Power Ministry Allotted over Rs. 20,500 Cr., RDSS Gets Lion’s Share

Union Budget has allocated Rs. 20,502 crore, out of which Reform Linked Distribution Scheme (RDSS) has been allocated the heftiest component of Rs. 12,585 crore. Towards ‘Strengthening of Power Systems’, a sum of Rs. 2,416.02 crore has been earmarked in the Union Budget. This component takes into account smart grids, Green Energy Corridors, and improvement of transmission system in North-Eastern India.