Policy

Centre allows Discoms more flexibility for setting up KUSUM solar pumps

Twesh Mishra New Delhi | Updated on January 01, 2020 Published on January 01, 2020

KUSUM (Kisan Urja Suraksha evam Utthaan Mahaabhiyan), the Centre’s solar pump distribution scheme, was first announced in the Union Budget 2018-2019. Representative image   -  The Hindu

The Ministry of New and Renewable Energy has allowed more flexibility to power distribution companies (Discoms) for utilising the Centre’s financial support for setting up solar projects.

This flexibility has been extended to projects that are being set up under the Pradhan Mantri Kisan Urja Suraksha evem Utthan Mahabhiyan (PM KUSUM) Scheme.

“A Discom can, if they desire so, pass on the Procurement Based Incentive (PBI) given to Discoms by the Central Government under Component – A of the Scheme, to the Renewable Energy Power Plant owner to get more competitive tariff of RE Power under the Scheme,” a MNRE official told BusinessLine.

Under the Component A of the PM KUSUM scheme, Discoms are encouraged to set up decentralised ground mounted grid connected renewable power plants of individual plant size up to 2 MW. These projects are to be set up on land offered by farmers. The power produced from these projects will provide an additional income to farmers through its mandatory procurement by the Discoms.

Under the scheme, the Discoms will purchase power at pre-fixed tariff for which they will get PBI of ₹0.40 per unit up to ₹33 lakh per MW over a span of five years as central government assistance.

According to the PM KUSUM policy, decentralised Solar energy and other renewable energy generation Plants of capacity up to 2 MW will be developed simultaneously which could be connected directly to the existing 33/11 kV or 66/11 kV or 110/11 kV sub-stations of Discoms.

This would lead to saving in transmission system requirement apart from lowering transmission and distribution T&D losses.

“Such plants near these sub-stations may be developed, preferably by farmers, giving them an opportunity to increase their income by utilising their barren and uncultivable land for solar or other renewable energy based power plants.

“Cultivable land may also be used if the solar plants are set up on stilts where crops can be grown below the stilts and sell RE power to Discoms,” the KUSUM policy said.

Published on January 01, 2020
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