Union Cabinet Approves Solar Power Scheme

Key Highlights of Pradhan Mantri Surya Sarovar Yojana (PM-SSY)

Scheme Overview

• Title: Pradhan Mantri Surya Sarovar Yojana (PM-SSY)
• Budget: ₹5,070 crore
• Central Financial Assistance (CFA): Up to ₹1 crore per MW for floating solar projects.
• Target Capacity: 5,000 MW of floating solar by FY 2030-31.
• Implementing Body: Solar Energy Corporation of India (SECI).

Current Capacity & Potential

• Installed Floating Solar Capacity: Approximately 0.7 GW.
• Estimated Technical Potential: 102 GW for floating solar in India.
• Largest Floating Solar Project: Omkareshwar floating solar park (278 MW), aimed to scale to 600 MW, located in Madhya Pradesh.

Scheme Objectives

• Diversification of Installations: Encouraging geographical diversity in states with significant water bodies but limited land availability.
• Addressing Constraints: Tackling issues of land acquisition and the rising costs related to rehabilitation and resettlement associated with ground-mounted solar projects.
• Enhancing Local Manufacturing: Promote domestic manufacturing of specialized components, expected to generate 16,000-17,000 jobs.

Technological & Operational Insights

• Battery Storage Requirement: All projects must incorporate battery energy storage (minimum of 10,000 MWh).
• Advantages of Floating Solar:
  • Avoids competition for agricultural land.
  • Reduces water evaporation.
  • Cooler operating conditions improve solar panel efficiency.

Economic Considerations

• Cost of Floating Solar Systems: Estimated at ₹4.9-5.2 crore per MW, which is about 25% higher compared to ground-mounted projects due to additional floating platforms, anchoring, and mooring systems.
• Strategic Value: The scheme aims to increase renewable electricity dispatchability and reduce reliance on land-intensive projects.

Background on Solar Development in India

• Current Installed Solar Capacity: Roughly 100 GW, primarily ground-mounted.
• Government Target: 500 GW of non-fossil fuel electricity capacity by 2030.
• Land Requirement: Ground-mounted projects require 3-4 times more land per megawatt than the area occupied by solar panels, creating significant land acquisition challenges.

Research & Assessment

• National Institute of Solar Energy (NISE): Conducted an assessment indicating that India can feasibly host 102.18 GW of floating solar capacity based on available water resources and infrastructure.

Conclusion

The PM-SSY represents a significant government initiative to harness India's floating solar potential, tackle land-use challenges, promote local manufacturing, and facilitate a transition towards more sustainable energy solutions.