🌿 Boosting Renewable Energy: IEEFA & JMK Research Call for GST Cuts on Hydropower and Wind Projects 🌿

Exciting developments in India's renewable energy sector! A recent study by the Institute of Energy Economics and Financial Analysis (IEEFA) and JMK Research has recommended crucial measures to help India achieve its ambitious target of 500 GW of renewable energy capacity by 2030

🔹 Key Recommendations: 𝗚𝗦𝗧 𝗥𝗲𝗱𝘂𝗰𝘁𝗶𝗼𝗻𝘀: 𝗛𝘆𝗱𝗿𝗼𝗽𝗼𝘄𝗲𝗿: Lower GST on project components from 18-28% to 12%.

𝗪𝗶𝗻𝗱 𝗣𝗿𝗼𝗷𝗲𝗰𝘁𝘀: Reduce GST from 12% to 5%. 𝗘𝗻𝗲𝗿𝗴𝘆 𝗦𝘁𝗼𝗿𝗮𝗴𝗲: Maintain GST below 5% for the next five years, specifically applying a 5% rate to Battery Energy Storage Systems (BESS) and components. Incentives:

𝗘𝘅𝘁𝗲𝗻𝗱 𝘁𝗵𝗲 𝟭𝟬𝟬% 𝗲𝘅𝗲𝗺𝗽𝘁𝗶𝗼𝗻 in 'inter-state transmission system' (ISTS) charges until 2030. 𝗘𝗹𝗶𝗺𝗶𝗻𝗮𝘁𝗲 𝗿𝗲𝘃𝗲𝗿𝘀𝗲 𝗮𝘂𝗰𝘁𝗶𝗼𝗻𝘀 for wind tenders. Introduce 𝗻𝗲𝘄 𝗳𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 𝘀𝘁𝗿𝘂𝗰𝘁𝘂𝗿𝗲𝘀 to address challenges in open access.

Market and Policy Enhancements: Pilot a power exchange-based Contract for Difference (CfD) project to improve power exchange markets. Expedite visa approvals for skilled 𝗖𝗵𝗶𝗻𝗲𝘀𝗲 𝘁𝗲𝗰𝗵𝗻𝗶𝗰𝗶𝗮𝗻𝘀 𝘁o support the expansion of solar manufacturing in India.

The study underscores the urgency of these measures, as India added only 18 GW of renewable capacity in FY 2023-24, with a slight decline in investments from the previous year.

Accelerating efforts and implementing these recommendations can significantly boost our progress towards a greener, more sustainable future. Let’s work together to transform India's energy landscape! 🌞💨🌊 #RenewableEnergy #GreenFuture #SustainableIndia #GSTReform