Battery Storage Push Under Revamped PM-KUSUM 2.0

Battery Storage Push Under Revamped PM-KUSUM 2.0

Why in the News ?

The Centre is planning to introduce battery energy storage in the revamped PM-KUSUM 2.0 scheme as the current scheme expires in March 2026. This aims to address solar generation-demand mismatch in agriculture and improve grid efficiency and reliability while ensuring compliance with environmental clearance requirements for expanded solar installations.

Key Changes in PM-KUSUM 2.0:

• The government is considering adding Battery Energy Storage Systems (BESS) to the revamped PM-KUSUM 2.0, with projects requiring proper environmental impact assessment under the EIA notification framework.
• The existing scheme (launched in 2019) focuses only on solarisation of agricultural pumps, without storage provisions, though some installations faced delays due to ex post facto compliance issues.
• Battery storage will store surplus solar power generated during peak sunlight hours, contributing to a pollution free environment by reducing diesel dependency.
• Stored energy will be used when demand persists but solar generation declines, especially in evenings, following the precautionary principle to ensure uninterrupted agricultural operations.
• There is a policy divergence:

○   Ministry of Power suggests up to 4-hour storage capacity

○   MNRE proposes 2-hour storage capacity

Need for Battery Storage & Scheme Progress

• There is a mismatch between agricultural demand and solar generation patterns:

○   Demand rises in morning and continues through the day

○   Solar peaks at noon and declines afterward

• This creates grid management and supply challenges, requiring integrated solutions aligned with environmental democracy principles for sustainable energy planning.
• Battery storage is seen as a critical solution to balance supply-demand gaps while adhering to environmental jurisprudence established through landmark cases like the Vanashakti judgment.
• Progress under the current scheme:

○   Component A: 8,394 MW solar capacity installed, with projects obtaining necessary environmental clearances and complying with the Forest Conservation Act where applicable

○   Component B: Over 10 lakh standalone solar pumps installed

○   Component C:

■ 12,757 pumps solarised individually (IPS)

■ Over 13 lakh pumps covered via feeder-level solarisation (FLS)

• Despite targets of 34.8 GW capacity, implementation has been slower than expected, partly due to regulatory processes including retrospective environmental clearances for some ex-post installations.