Ministry of New & Renewable Energy: Government Schemes | Indian Economy for UPSC CSE PDF Download

PM-KUSUM

Key Points

• About:
  • The PM-KUSUM scheme was launched by the Ministry of New and Renewable Energy (MNRE) to support installation of off-grid solar pumps in rural areas and reduce dependence on grid, in grid-connected areas.
  • The Cabinet Committee on Economic Affairs (CCEA) had in February 2019 approved the launch of the scheme with the objective of providing financial and water security.
  • The government’s Budget for 2020-21 expanded the scope for the scheme with 20 lakh farmers to be provided assistance to install standalone solar pumps; another 15 lakh farmers to be given help to solarise their grid-connected pump sets.
    • This will enable farmers to set up solar power generation capacity on their barren lands and to sell it to the grid.
• Components of the PM-KUSUM:
  
  • PM-KUSUM consists of three components and aims to add a solar capacity of 30.8 GW by 2022:
    • Component-A: 10,000 MW of decentralised ground-mounted grid-connected renewable power plants.
    • Component-B: Installation of two million standalone solar-powered agriculture pumps.
    • Component-C: Solarisation of 1.5 million grid-connected solar-powered agriculture pumps.
• Intended Benefits of the Scheme:
  • Helping Discoms:
    • Supports the financial health of electricity distribution companies (discoms) by reducing the burden of subsidy to the agriculture sector.
    • Help them meet the RPO (Renewable Purchase Obligation) targets.
  • Helping States:
    • Promotes decentralised solar power production, and reduces transmission losses.
    • A potential way to reduce their subsidy outlay towards irrigation.
  • Helping Farmers:
    • If farmers are able to sell surplus powers, they will be incentivised to save power and, in turn, it will mean the reasonable and efficient use of groundwater. This will also increase their income.
    • This may also provide water security to farmers through the provision of assured water sources through solar water pumps — both off-grid and grid-connected.
  • Helping Environment:
    • Expansion of the irrigation cover by providing decentralized solar-based irrigation and moving away from polluting diesel.
• Concerns:
  • Logistics Issue:
    • There is a matter of domestic availability of equipment itself. While pumps are not a challenge for domestic suppliers, the availability of solar pumps is still an issue.
    • Further, due to the strict DCR (Domestic Content Requirements), the suppliers of solar equipment have to raise the domestic cell sourcing. However, there isn’t enough domestic cell manufacturing capacity.
  • Omission of Small and Marginal Farmers:
    
    • There has been the relative omission of small and marginal farmers, as the scheme focuses on pumps of 3 HP and higher capacities.
    • It is due to this, solar pumps are not reaching the majority of farmers, as nearly 85% of them are small & marginal.
    • Also, the reality of low water tables, especially in North India and parts of South India, which make small-sized pumps limiting for the farmer.
  • Depleting Water Tables:
    • Due to power subsidies, the recurring cost of electricity is so low that farmers keep on pumping water and the water table is going down.

      In a solar installation, it becomes a more difficult job to upgrade to higher capacity pumps in case the water table falls because one will have to add new solar panels which are expensive.

Way Forward

• Consensus between the Centre and States is the key to the success of this decentralised solar power scheme. Any reform in India’s power space cannot take place unless there is consensus between the Centre, States and stakeholders.
• Apart from switching to solar power, farmers should also switch over to drip irrigation mode which saves water and power with increased crop output.
• For effective implementation and serious participation by stakeholders, the scheme should be more attractive in terms of benchmark prices in view of the challenges on account of higher costs of implementation and comprehensive maintenance.

Grid Connected Rooftop Solar Programme

Key Points

• Objective:
  • To generate solar power by installing solar panels on the roof of the houses, the Ministry of New and Renewable Energy is implementing Grid-connected Rooftop Solar Scheme (Phase II).
• Grid-Connected Rooftop Solar Scheme (Phase II):
  • It aims to achieve a cumulative capacity of 40,000 MW from Rooftop Solar Projects by the year 2022.
  • In a grid-connected rooftop or small Solar Photovoltaic (SPV) system wherein the DC power generated from the SPV panel is converted to AC power using the power conditioning unit and is fed to the grid.
  • The major objective of the programme includes:
    • To promote the grid-connected SPV rooftop and small SPV power generating plants among the residential, community, institutional, industrial and commercial establishments.
    • To mitigate the dependence on fossil fuel based electricity generation and encourage environment-friendly Solar electricity generation.
    • To create an enabling environment for investment in the solar energy sector by the private sector, state government and the individuals.
    • To create an enabling environment for the supply of solar power from rooftop and small plants to the grid.
  • This scheme is being implemented in the state by distribution companies (DISCOMs).
    • Under this scheme the Ministry is providing a 40% subsidy for the first 3 kW and 20% subsidy beyond 3 kW and upto 10 kW of solar panel capacity.
  • The residential consumer has to pay the cost of rooftop solar plant by reducing the subsidy amount given by the Ministry as per the prescribed rate to the vendor.
• Other Schemes for Promoting Solar Energy:
  • Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM-KUSUM):
    • The scheme covers grid-connected Renewable Energy power plants (0.5 – 2 MW)/Solar water pumps/grid connected agriculture pumps.
  • Scheme for Development of Ultra Mega Renewable Energy Power Parks:
    • It is a scheme to develop Ultra Mega Renewable Energy Power Parks (UMREPPs) under the existing Solar Park Scheme.
  • National Wind-Solar Hybrid Policy:
    • The main objective of the National Wind-Solar Hybrid Policy, 2018 is to provide a framework for promotion of large grid connected wind-solar PV hybrid systems for optimal and efficient utilization of wind and solar resources, transmission infrastructure and land.
    • The wind - solar PV hybrid systems will help in reducing the variability in renewable power generation and achieving better grid stability.
    • The policy also aims to encourage new technologies, methods and way-outs involving combined operation of wind and solar PV plants.
  • Atal Jyoti Yojana (AJAY):
    • The AJAY scheme was launched in September 2016 for the installation of solar street lighting (SSL) systems in states with less than 50% households covered with grid power (as per Census 2011).
  • International Solar Alliance: The ISA, is an Indian initiative that was launched by the Prime Minister of India and the President of France on 30th November 2015 in Paris, France on the side-lines of the Conference of the Parties (COP-21), with 121 solar resource rich countries lying fully or partially between the tropic of Cancer and tropic of Capricorn as prospective members.
  • One Sun, One World, One Grid (OSOWOG): It focuses on a framework for facilitating global cooperation, building a global ecosystem of interconnected renewable energy resources (mainly solar energy) that can be seamlessly shared.
  • National Solar Mission (a part of National Action Plan on Climate Change)
  • Suryamitra Skill Development Programme: To provide skill training to rural youth in handling solar installations.