Budget 2024: Renewable Energy Stocks Rise On Projects Push

Shares of renewable energy firms from both wind and solar sectors rose by 2-8%, after Finance Minister Nirmala Sitharaman announced budgetary push for the offshore wind, solar and coal gasification projects.

Shares of KPI Green Energy Ltd. rose 7.16%, while those of Waaree Renewables Technologies Ltd. and Suzlon Energy Ltd. were up 5% each.

The government will provide viability gap funding to harness the offshore wind potential in the country by setting up an initial capacity of 1,000 MW (1 GW), Sitharaman said.

This will help the country use close to 700 GW offshore wind potential, where the government has recently shifted its focus to achieve its 2030 renewable capacity target of 500 GW.

With the aim of meeting its green transition goals, Sitharaman proposed the conversion of dirty fuel to less polluting fuel by setting up 100 metric tonne of coal gasification and liquefaction capacity by 2030.

This will help India reduce imports of ammonia and methanol through coal gasification.

In January, the government approved an outlay of Rs 8,500 crore as financial assistance for promoting coal and lignite gasification projects.

The government has also approved the setting up of a coal-to-SNG (synthetic natural gas) project through a joint venture between Coal India Ltd. and GAIL India Ltd. at an investment of Rs 13,052.81 crore, and a coal-to-ammonium nitrate project through a joint venture between CIL and Bharat Heavy Electricals Ltd. for Rs 11,782.05 crore.

The Pradhan Mantri Suryodaya Yojana, a rooftop solar plan for 1 crore families, was announced on Jan. 22.

One crore families will get free electricity up to 300 units every month under the plan, the Finance Minister said.

Families will save between Rs 15,000 and Rs 18,000 annually and can sell the surplus to the grid.