GST has not been implemented in the power sector since July 1, 2017, resulting in increased tariff burdens due to cascading indirect taxes. NSEFI’s proposition is focused on the implementation of GST regulations in the sector, which optimizes operational efficiencies and results in a better deal for both consumers and businesses.
Another highly critical recommendation by NSEFI is to extend continued exemptions from basic customs duty on very critical imports for renewable energy components like wafers, ingots, and polysilicon. This exemption is with the intent to boost the domestic manufacturing capacities and support the country in topping to increase its renewable energy infrastructure.
On top of this, NSEFI has suggested the elimination of the electricity duty and cross-subsidy surcharge on power utilized for the charging of ESS, which in effect will be a measure to increase the adoption of such technologies that are too significantly important for the effective balancing of the intermittency of renewable energy sources. This will unlock investments in energy storage solutions to enhance the grid’s stability and reliability.
Further recognizing the strategic importance and strategic value of energy storage, NSEFI has requested the government to introduce the funding gaps on viability parameters for Pumped Storage Projects (PSP), along with the Battery Energy Storage Systems. The move intends to inculcate sustainable thinking and efforts regarding energy storage, which would be integral for ensuring energy security in the country, supported by further investing in renewable resources for perfect synchronization with the national grid.
The vision of NSEFI goes beyond the energy sector to include developing a proposal for 100 agrivoltaic pilot projects across India. Such projects harmonize solar power generation with agricultural activities, creating a dual benefit to the farmer: renewable energy generation and a supplementary income source that increases the existing income level. The initiative does not only empower rural livelihoods but also goes a long way toward the fulfillment of the ambitious drive of taking renewable energy to the masses from 175 GW to 450 GW by 2030.
Conclusion: The proposed reforms in the NSEFI, it seems, would change the current scenario of energy in India. It needs to rectify a conducive regulatory environment with applicable incentives to invest in renewable energy and storage technologies to put India on a fast path to a future of sustainable and resilient energy. The upcoming budget announcement will be closely watched as stakeholders anticipate concrete steps toward achieving these transformative goals.
These are the very pragmatic policy recommendations that underlie the proposed reforms and emphasize India’s seriousness in using renewable energy as a cornerstone of its strategy for economic growth. It is therefore very crucial that, as the nation steers its course toward a green future, the alignment of fiscal policies will meet such proclaimed objectives of sustainability, ensuring that there is affordable, dependably safe energy access for all, keeping the environment safe for future generations.