Gujarat Plans Big With Energy Storage Proposals In Budget

Storage systems are necessary for storing non-fossil fuel energy to be used during peak hours, ensuring continuous power supply, reduction of carbon emissions, deferral of transmission and distribution capital expenditure, and promotion of energy arbitrage.

India’s peak power demand stood at 249.85 GW in June.

India, the third largest producer and consumer of electricity worldwide, has set a goal of sourcing 500 GW from non-fossil sources, and 41 GW of storage capacity by 2030. Nine states, including Gujarat, have signed a pledge to meet this energy production goal.

Through these policies announced in the budget, Gujarat is expected to attract an investment of Rs 8.47 lakh crore through 500 agreements in this sector.

The Gujarat Government's Energy Department has already decided to announce a total of six power policies, including on Green Hydrogen, with a plan to introduce new parameters and increase incentives as the terms of three existing policies are near completion.

Additional Chief Secretary of the Energy Department, S. J. Haider had earlier stated that Gujarat currently has 29 GW of renewable energy capacity, and has a target of generating 50 GW of hydrogen power, with an additional 71 GW of capacity.

The Gujarat Finance Minister Kanu Desai on Thursday expressed his commitment to promote innovation, inclusiveness, and sustainability in renewable energy.

The state has been awarded the Highest Achiever State award for achieving its targeted renewable power capacity at the PM Global RE-Invest Summit-2024, held recently.

Kisan Suryodaya Yojana

A provision of Rs 2,175 crore has been made under the Kisan Suryodaya Yojana to provide electricity to farmers during the day, Rs 987 crore for providing new agricultural power connections in tribal and other areas, Rs 132 crore for providing new agricultural power connections in all other areas, and Rs 250 crore will be provided for setting up new sub-stations under the Sagarkhedu Sarvangi Vikas Yojana.

A provision of Rs 50 crore has been made for the development of Electric Vehicle (EV) charging infrastructure facilities, Rs 936 crore for the upgradation of infrastructure facilities, and a smart meter scheme for strengthening the power distribution system under the Revamped Distribution Scheme.

Similarly, an amount of Rs 160 crore has been allocated for setting up new sub-stations in tribal areas. 

A provision of Rs 245 crore has been made under Vanbandhu Kalyan Yojana-2 to provide consistent and quality electricity using modern technology. Rs 103 crore has been allotted for providing stand-alone off-grid solar power agriculture pumps under PM Kusum Yojana, Rs 100 crore for setting up disaster resilient power infrastructure in coastal areas, and Rs 100 crore will be provided for converting existing overhead distribution networks into underground cable networks.

Another Rs 95 crore has been allocated for widening roads or shifting/replacing existing transmission lines and associated power infrastructure that are obstructing road construction.

A provision of Rs 26 crore has been made for spreading awareness about electricity safety, development of green energy data centres, capacity building for energy transition and green jobs, pilot projects, feasibility studies, and infrastructure development. 

A provision of Rs 4 crore has been made for green feeders pilot projects in Gujarat, preliminary testing of suitable sites for setting up nuclear power projects, common transmission corridors for renewable energy and green hydrogen, and development of the bio-fuel industry.