Article 2: Solar Agriculture Reform
Why in News: The government is planning PM-KUSUM 2.0 with battery energy storage as the existing PM-KUSUM scheme (2019) expires in March 2026.
Key Details
- PM-KUSUM scheme launched in 2019 to promote solarisation of agriculture pumps.
- Government is considering battery storage integration in PM-KUSUM 2.0.
- Objective is to address mismatch between solar generation and agricultural demand.
- Scheme timeline extended; total installed capacity so far is ~12 GW against 34.8 GW target.
PM-KUSUM Scheme: Objectives & Components
- Clean Energy in Agriculture: PM-KUSUM aims to reduce farmers’ dependence on diesel and grid electricity by promoting solar irrigation, supporting India’s renewable energy targets.
- Three Key Components:
- Component A: Decentralised solar plants (up to 2 MW each) for local power generation.
- Component B: Standalone solar pumps in off-grid areas, improving irrigation access.
- Component C: Solarisation of grid-connected pumps (individual and feeder-level).
- Capacity Target: The scheme aims to add 34.8 GW solar capacity, making agriculture a key contributor to India’s energy transition.
- Farmer Income Support: Farmers can sell surplus power to DISCOMs, creating an additional income stream and enhancing rural livelihoods.
Performance and Implementation Challenges
- Slow Progress: Against the target of 34.8 GW, only about 12 GW capacity has been installed as of 2026, indicating implementation bottlenecks.
- Component-wise Status:
- Component A: ~8394 MW installed
- Component B: Over 10 lakh solar pumps installed
- Component C: Over 13 lakh pumps solarised at feeder level
- Financial Constraints: Delays in loan disbursement and financial closure by banks have slowed project execution.
- Institutional Coordination Issues: Differences between ministries and states have affected uniform implementation and monitoring.
Solar Generation vs Agricultural Demand Mismatch
- Demand Pattern: Agricultural electricity demand is high in morning and evening, depending on irrigation cycles.
- Solar Supply Pattern: Solar energy generation peaks at midday and declines after sunset, creating a supply-demand gap.
- Operational Challenges: This mismatch leads to grid instability, power wastage, and inefficient utilisation of solar energy.
- Impact on DISCOMs: Power distribution companies face difficulties in load balancing and supply management, increasing financial stress.
Battery Energy Storage: Need and Significance
- Bridging Supply-Demand Gap: Battery storage can store excess solar energy during peak generation and supply it during high demand periods.
- Grid Stability: It enhances grid reliability and flexibility, reducing fluctuations and ensuring continuous power supply.
- Policy Debate:
- Ministry of Power suggests 4-hour storage capacity
- MNRE proposes 2-hour capacity, reflecting cost vs efficiency considerations
- Global Trend: Integration of storage is a key feature in modern renewable systems, aligning India with global energy transition practices.
PM-KUSUM 2.0: Policy Evolution
- Inclusion of Battery Storage: PM-KUSUM 2.0 is expected to integrate Battery Energy Storage Systems (BESS), making the scheme more efficient.
- Timeline Extension: Government has extended deadlines for financial closure and project completion, ensuring continuity.
- Stakeholder Consultations: Ministries of Power, MNRE, and Finance are involved, indicating multi-sectoral policy design.
- Focus on Energy Transition: The scheme is positioned as a pillar of India’s renewable energy and climate commitments.
Significance for Indian Economy & Environment
- Doubling Farmers’ Income: Solarisation reduces input costs and provides additional revenue from power sales.
- Energy Security: Reduces dependence on fossil fuels and imports, strengthening energy independence.
- Climate Commitments: Supports India’s Nationally Determined Contributions (NDCs) and net-zero goals.
- Sustainable Agriculture: Promotes clean irrigation practices, reducing carbon footprint and environmental degradation.
Conclusion
PM-KUSUM 2.0 represents a crucial step towards integrating renewable energy with agriculture. The inclusion of battery storage can address structural inefficiencies and enhance scheme effectiveness. Going forward, improved financing mechanisms, better coordination among stakeholders, and technological innovation are essential to realise the full potential of solar agriculture and ensure sustainable rural development.