The attempt to converge KUSUM scheme with ongoing other schemes present a great opportunity, but the guidelines are not well designed to achieve this convergence. Analyse (200 Words)
Enrich the answer from other sources, if the question demands.
IAS Parliament 5 years
KEY POINTS
· The recently announced KUSUM (Kisan Urja Suraksha evam Utthaan Mahabhiyan) scheme by the Ministry of New and Renewable Energy (MNRE) attempts to address some of these issues related to power supply for agriculture.
· KUSUM is presented as a solarisation scheme aimed at benefiting farmers. The scheme has three components.
· Component A promotes distributed solar energy generation with a solar plant capacity of 500 kW to 2 MW. As per MNRE guidelines, the solar plant requires a dedicated evacuation infrastructure (feeder).
· A competitive bidding process for tariff determination, with a ceiling tariff as per latest solar energy tariff order of the respective States, is being proposed.
· The proposed competitive bidding process for tariff determination proposed is unlikely to attract any bidders, as the capital cost of smaller renewable generators is typically higher than the capital cost of larger systems. It is financially not feasible for the generators.
· The requirement for a dedicated feeder for evacuation of electricity generated by the DREG results in unnecessary infrastructure costs and occupies valuable discom substation bays.
· One key advantage of distributed solar energy generation is the fact that production and consumption of electricity occur at the same location, or in close vicinity to each other, thereby reducing T&D losses and optimising the utilisation of existing electrical distribution infrastructure.
Grid-connected power
· Component C of KUSUM promotes grid-connected solar for agricultural service connections (behind-the-meter).
· A domestic content requirement for the solar system components is mandatory. The priority is set on small and marginal farmers. The guidelines also give priority to farmers already using, or about to adopt, micro-irrigation systems.
· As electricity is free of cost for the agricultural consumers, the suggested financing model (with a 40 per cent contribution by the farmer) are unlikely to work.
· Alternatively, a third party may invest in the solar system and sell the gross-generated solar energy to the discom.
· To make this approach acceptable to the farmer, a ‘solar farmer incentive’ to to reduce water and electricity consumption can be introduced.
Chinna 5 years
Kindly review... thank you...
IAS Parliament 5 years
Good attempt. Keep Writing.
