BENGALURU: The state and the central governments are looking at increasing generation and storage capacity for renewable energy. To achieve this, Union Finance Minister Nirmala Sitharaman on Tuesday announced custom duty exemption for solar cells and lithium, one of the main components in batteries.
State energy department officials said they are working on doubling power generation in the state from the existing 32,000 MW to 60,000 MW, of which maximum is aimed from solar energy. The finance minister’s announcement will help in this direction, they added.
A department official said, “The duty exemption on lithium will help increase the number of electric vehicles by bringing down costs and this is needed to curtail vehicular emission to achieve Net 0 emissions. In future, lithium batteries will also be crucial to store electricity. The government is looking at hydrogen-based power generation or battery-based storage. The duty exemption will reduce the cost of these batteries, which is a major financial factor.”
The official said that Karnataka, along with other states, has demanded that the Centre subsidise the cost of setting up pumped power storage facilities. “The central government in the budget mentioned that a policy for pumped storage of power will soon be out for round-the-clock power. Finer details of the policy need to be studied to know what it contains. We are planning a pumped storage plant in Sharavathi, and now we can finalise plans for eight more, which are under consideration,” the official added.
“The budget’s focus on sustainability and green energy showcases the country’s commitment to become a Net 0 economy by 2070. The exemption on lithium will minimise the cost of Li-ion batteries. This can significantly boost the energy storage industry, while exhibiting grid resilience for deeper penetration of electric vehicles across the country,” said Deepak Pahwa, Director, Bry-Air.
SK Gupta, CFO, AMPIN Energy Transition, said that emphasis on the PM Surya Ghar Muft Bijli Yojna will help in the larger penetration of renewable energy among households. A road map for moving from energy efficiency to emission reduction will further help promote renewable energy.
To promote renewable energy, the industrial sector has demanded classifying it as part of the priority sector and rationalising indirect tax (GST rates) on turbines and modules from 12% to 5%.