India's Ambitious Energy Transition: Budget Highlights 2024-25

India's energy transition plan, revealed in the 2024-25 Budget, focuses on small modular nuclear reactors, pumped-storage projects, and more efficient thermal plants. Finance Minister Nirmala Sitharaman highlighted government collaboration with private firms and the development of advanced nuclear and renewable energy technologies to enhance energy efficiency and reduce emissions.

India’s new energy transition plan, unveiled as part of the 2024-25 Budget, sets the stage for significant advancements in nuclear and renewable energy sectors. Announced by Union Finance Minister Nirmala Sitharaman on Tuesday, the strategy involves developing small modular nuclear reactors (SMRs), implementing pumped-storage projects, and enhancing the efficiency of thermal plants.

Sitharaman declared that the government would collaborate with private companies to foster the creation of SMRs and research advanced technologies to increase nuclear power's share in India’s energy mix. A roadmap for transitioning 'hard to abate' sectors such as shipping, aviation, iron and steel, and chemicals towards emission targets would also be prepared.

The policy includes creating a taxonomy for climate finance to better allocate funds for climate adaptation and mitigation efforts. Sitharaman emphasized partnering with the private sector, noting that SMRs could fast-track India's nuclear power capacity, an essential element in the country’s pursuit for a more sustainable energy future.