Incorporation of Battery Energy Storage in PM-KUSUM Scheme

The government is considering adding a battery energy storage provision to the revamped Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyaan (PM KUSUM) scheme, as the current version is set to expire, and discussions are underway for a new iteration, likely to be named PM-KUSUM 2.0.

Current Scheme Overview

• Launched in 2019, focusing on the solarisation of agricultural pumps.
• Lacks a provision for battery storage.
• Addresses challenges caused by the mismatch between agricultural power demand and solar generation patterns.

Need for Battery Storage

Battery storage is being considered to balance the divergence between load demand and solar generation:

• Agricultural demand increases in the morning, stays steady, and decreases after sunset.
• Solar generation peaks at noon, creating a misalignment with demand.
• Battery storage is proposed to store surplus solar power generated during peak hours and supply it when demand persists but generation declines.

Proposed Battery Storage Capacity

• Discussions are ongoing between the Ministry of Power and the Ministry of New and Renewable Energy (MNRE).
• The Ministry of Power suggests up to four hours of storage capacity.
• MNRE proposes a two-hour capacity.

PM-KUSUM Scheme Components

• Component A: Setting up of decentralised solar power plants.
• Component B: Installing standalone solar pumps in off-grid areas.
• Component C: Solarising grid-connected agricultural pumps, supporting both Individual Pump Solarisation (IPS) and Feeder-Level Solarisation (FLS).

Current Achievements

• Total targeted solar capacity: 34.8 GW.
• Installed capacity as of February: 12,164 MW.
• Component A: 839.4 MW installed.
• Component B: Over 10 lakh standalone agricultural pumps installed.
• Component C: Over 12,787 pumps solarised through IPS; feeder-level solarisation covers over 13 lakh pumps with 6,636.9 MW capacity.

Extension and Financial Closure

The timeline for financial closure and project completion under the scheme has been extended due to loan extension delays:

• The Department of Expenditure has guided subsuming the existing timeline under PM KUSUM 2.0.
• States are advised to coordinate with banks to facilitate loans and expedite financial closure.