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Kusum Scheme

The KUSUM scheme aims to promote solar power in India through 3 components: [1] Setting up solar power plants of 500KW-2MW capacity connected to the grid; [2] Installing 17.5 lakh standalone solar pumps of up to 7.5HP to replace diesel pumps; [3] Solarizing 10 lakh existing grid-connected pumps of up to 7.5HP capacity. Key concerns raised include issues around tariffs and roles of DISCOMs, access to loans for farmers, and ensuring sustainable use of groundwater resources. Suggestions focus on standardization, use of efficient irrigation techniques, and addressing financial and implementation challenges.

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65 views3 pages

Kusum Scheme

The KUSUM scheme aims to promote solar power in India through 3 components: [1] Setting up solar power plants of 500KW-2MW capacity connected to the grid; [2] Installing 17.5 lakh standalone solar pumps of up to 7.5HP to replace diesel pumps; [3] Solarizing 10 lakh existing grid-connected pumps of up to 7.5HP capacity. Key concerns raised include issues around tariffs and roles of DISCOMs, access to loans for farmers, and ensuring sustainable use of groundwater resources. Suggestions focus on standardization, use of efficient irrigation techniques, and addressing financial and implementation challenges.

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DS
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KUSUM (Kisan Urja Suraksha Evam Uthan Mahahiyan) SCHEME

1. Component A : 10MW decentralised Ground/stilt mounted Grid connected solar plants

Salient Features:

 Solar or other renewable energy-based power plants


 Capacity 500 KW to 2 MW(Farmers/cooperative/panchayat/Farmers producers organisation)
 DISCOMs purchase the power generated at a Feed-In-Tariff(FIT) determined by SERC
 GOI will provide procurement based incentive (PBI) to the DISCOMs @40 paisa/KWH or Rs 6.60 lakhs/MW/year up to 5 years whichever is less
 State nodal agencies (SNAs) will get 0.25 lakh per/MW after commissioning the project with regards to publicity/creating awareness

Key Concerns:

 Clarification over SERC regulation on FIT and the confusion over tendering with ceiling tariff – RERC has given draft and they are asking for comments
 Why should local DISCOMs involve in setting up solar plants?
 Clarification required on lease Rupees/year/unit land area or Rupees/Unit Energy Generated/ Unit land area. What is the basis?
 Why should DISCOMs be involved in payments/transactions between developers and farmers.

2. Component B : Installation of 17.5 Lakhs Stand Alone Pumps

Salient Features:

 Farmers can setup Standalone solar pumps up to 7.5 HP replacing existing diesel pump sets
 Centre financial assistance (CFA) and state govt to share 30% of stand-alone solar pump cost each
 Out of remaining 40% farmers need to invest 10% while 30% can be accessed through bank loans.

Key Concerns:

 How will farmers access loan?


 Clarification over Dark Zones in this plan (what, where and how?)
 Roles of Micro irrigation (is implementation required and by whom?)
 Off-grid areas: what is off-grid? How much will he earn (incentives)?
 Why shouldn’t implementing agency be uniform across the country?
Suggestions:

 Reduction of the documentation work : digitalization with geo-tagging


 Digitalization of installation details : Management and Organisation
 Specification tests of pumps by MNRE

3. Component C: Solarisation of 10 lakhs Grid connected solar pumps

Salient features:

 Solarisation of 10 lakh grid connected Electric pumps of up to 7.5 HP each (with minimum capacity?)
 Solar PV capacity up to 2 times of pump capacity in KW terms, to enable sale of excess power to DISCOMs
 Centre and state to share 30 percent of pump cost each farmer to provide the remaining 40 percent (Can access bank loan for up to 30 percent of the cost )
 Tendering to be carried out by DISCOMs/GENCO/any other departments designated by the state government

Major Concerns

 How will the metering challenge be addressed?


 How will off-grid diesel pumps be solarised?
 Why only indigenous solar cells? Other options include glass, EVA, back sheet junction box
 Why only manufacturers and not developers involved for installation?

Suggestions:

 Solar pump sets and controllers by MNRE (performance requirement)


 Reduction in capacity of solar panels (from 2 times pump capacity to 1.5 times)
 Make it mandatory operation of grid-connected solar water pumping system that should operate under off-grid mode
 Revision of existing norms of the Standard Bidding Document (SBD) by MNRE, to be followed by all Tendering Authorities mandatorily and formulate SBD for
large size projects.
 Payment term should be universal across India
 Bank guarantees from any scheduled bank as opposed to requirement of BG from nationalized bank.
 Indigenously manufactured Solar PV panels, to be used under the KUSUM scheme. As well as motor-pump sets and solar pump controller along with suitable
inverters.
General Concerns : KUSUM Scheme

 Why run it by MNRE? The whole point of it is decentralization??


 Lack of plan/mechanism for 40% cost of pumps being borne by farmers and interface with banks
 Guidelines for remote monitoring , are the same as solar guidelines
 This should be available only if micro irrigation is present? (Suggestion?)
 How to deal with overexploitation of acquires leading to depletion of ground water?
 Scheme fails to address and promote efficient irrigation techniques
 Why is the scheme being pushed in haste through DISCOMs which are financially unwell?

Stakeholders present in discussion:

1. NSEFI
2. TERI
3. HFM Solar
4. UL INFRA
5. Shakti Pumps
6. Span Pumps
7. Okaya
6. Insolation Energy
7. Refex Energy
8. IB Solar

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