Power, Oil, Gas & Renewables: Budget 2026–27 Builds Energy Security for a Volatile World

Kamal DSIJCategories: Mindshare, Trendingjoin us on whatsappfollow us on googleprefered on google

Power, Oil, Gas & Renewables: Budget 2026–27 Builds Energy Security for a Volatile World

Energy Security, Green Transition and Infrastructure Expansion Take Centre Stage

Energy as Strategy, Not Just Supply

Budget 2026–27 treats energy not merely as a sector, but as a strategic foundation for economic resilience, industrial growth, and climate commitments. The policy mix balances renewables, nuclear power, grid stability, and transition fuels, acknowledging that India’s energy transition must be orderly and secure.

Renewables and Storage: Strengthening the Backbone

BCD exemptions on capital goods for lithium-ion cell manufacturing, battery energy storage systems (BESS), and sodium antimonate for Solar glass production reduce costs across the renewable value chain. These measures support grid-scale storage essential for managing renewable intermittency and reinforce domestic manufacturing under Atmanirbhar Bharat.

Every portfolio needs a growth engine. DSIJ’s Flash News Investment (FNI) provides weekly stock market insights and recommendations, tailored for both short-term traders and long-term investors. Download PDF Service Note Here

Solar: From Rooftops to Manufacturing Depth

The Budget allocates:

  • Rs 22,000 crore to PM Surya Ghar Muft Bijli Yojana
  • Rs 5,000 crore to KUSUM
  • Rs 1,775 crore for grid-connected solar projects

Importantly, tariff rationalisation ensures no effective duty increase on solar wafers, providing policy continuity to manufacturers.

Nuclear Power: Long-Term Baseload Confidence

The extension of BCD exemptions for nuclear power projects till 2035, irrespective of capacity, provides long-term visibility for nuclear expansion — a critical non-carbon baseload source in India’s energy mix.

Oil, Gas and Transition Fuels

The full excise exclusion for biogas in blended CNG/PNG encourages compressed biogas adoption and improves economics for city gas distribution players. Further, a Rs 20,000 crore outlay for Carbon Capture, Utilisation and Storage (CCUS) over five years positions India for industrial decarbonisation in sectors like power, steel, cement, and refineries.

Financing and Grid Stability

The restructuring of PFC and REC aims to strengthen long-term financing for power infrastructure, while public capex supports grid upgrades, green corridors, and transmission reliability.

Investment Perspective

Energy investing is shifting from pure capacity addition to systems, storage, financing, and transition technologies. Budget 2026–27 reinforces that winners will be companies aligned with grid stability, storage, nuclear, and clean-fuel economics not just renewable capacity numbers.