Key Takeaways
- The Cabinet has approved the Pradhan Mantri Surya Sarovar Yojana with a budget of ₹5,070 crore to develop floating solar projects.
- The scheme aims to generate 5,000 MW of floating solar energy along with energy storage systems for improved grid reliability.
- Financial support will be provided to eligible projects from FY27 to FY33, helping to reduce carbon emissions by approximately 10 million tonnes annually.
Pradhan Mantri Surya Sarovar Yojana Launched
The Cabinet has given the nod to the Pradhan Mantri Surya Sarovar Yojana, a significant initiative with a total financial outlay of ₹5,070 crore. This scheme targets the development of floating solar photovoltaic projects equipped with energy storage systems. The initiative aims to establish 5,000 megawatts (MW) of floating solar projects, each having a minimum energy storage capacity of two hours or approximately 10,000 megawatt-hours (MWh).
Funding for this ambitious project will span from the fiscal year 2027 to 2031, with financial support extending until FY33. According to Santosh Kumar Sarangi, the secretary of renewable energy, this scheme provides a unique opportunity to effectively utilize existing reservoirs and industrial ponds, thus mitigating competition for limited land resources. The implementation of energy storage systems is expected to enhance grid reliability significantly.
The initiative is particularly beneficial for states with substantial water resources, enabling the generation of renewable energy from previously underutilized water surfaces. Rahul Kumar, Managing Director of North Bihar Power Distribution Company Ltd, emphasized the potential to harness floating solar energy due to the abundance of perennial water bodies within the region.
The National Institute of Solar Energy has predicted a potential for floating solar installations of around 102.18 gigawatts-peak (GWp) across reservoirs and inland water bodies. Under the new scheme, eligible projects will receive central aid of ₹1 crore per MW once they are commissioned. In addition, up to ₹50 lakh per project will be allocated for necessary studies and activities to mitigate risks associated with project development.
Currently, India’s floating solar capacity stands at approximately 700 MW. The new scheme is projected to enhance this capacity significantly by adding an additional 5,000 MW. This advancement is expected to contribute to a notable reduction of around 10 million tonnes in carbon emissions on an annual basis.
Most of the financial assistance will be needed starting in the fiscal year 2028-29 when the projects begin to come online. Before this, funds will be allocated for conducting feasibility studies, as articulated by the renewable energy ministry. The process for project initiation includes the submission of online proposals by state governments along with pre-feasibility reports. Following this, an in-principle approval from the ministry will be required for the feasibility studies to be submitted.
The timeline involves several steps: tendering for project capacity, awarding contracts, and finally, the disbursement of financial aid once projects are operational. The adoption of this scheme marks a significant step in India’s commitment to renewable energy and its efforts to reduce carbon footprints while leveraging untapped resources.
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