Centre Mulls Battery Storage Component In PM-KUSUM 2.0 To Address Solar Demand Mismatch

The existing scheme, launched in 2019, is set to expire this month, with discussions underway to roll out an updated version, likely to be named PM-KUSUM 2.0, reported The Indian Express. Focus on Bridging Demand-Supply Gap The proposed addition of battery storage aims to address the mismatch between agricultural power demand and solar energy generation patterns. Officials noted that agricultural electricity demand typically rises in the morning, remains steady during the day, and declines after sunset, whereas solar power generation peaks around midday and tapers off later. This divergence has created operational challenges for power distribution and grid management. Battery energy storage systems are expected to help bridge this gap by storing surplus solar energy generated during peak hours and supplying it when demand continues but generation declines. Divergent Views on Storage Capacity Discussions on the design of PM-KUSUM 2.0 are ongoing, with differences emerging between the Ministry of Power and the Ministry of New and Renewable Energy regarding the extent of storage capacity. While the Ministry of Power has suggested provisioning for up to four hours of battery storage, the renewable energy ministry has proposed a two-hour capacity. The Ministry of New and Renewable Energy confirmed that consultations are underway, including with the Ministry of Finance, adding that details will be finalised after discussions reach an advanced stage. Scheme Structure and Progress PM-KUSUM remains a key component of India’s clean energy transition strategy, focusing on the solarisation of the agriculture sector through three components, decentralised solar power plants, standalone solar pumps for off-grid areas, and solarisation of grid-connected agricultural pumps. Under Component C, the scheme supports both individual pump solarisation and feeder-level solarisation, aiming to expand renewable energy access in rural areas. The programme targets the addition of 34.8 GW of solar capacity. However, progress has been slower than expected, with around 12,164 MW installed as of February 2026. Government data shows that 839.4 MW has been installed under decentralised solar plants, while over 10 lakh standalone agricultural pumps have been deployed. Additionally, more than 12,700 pumps have been solarised individually, and feeder-level solarisation has covered over 13 lakh pumps, with installed capacity of 6,636.9 MW. Timeline Extension and Transition to New Scheme The Centre has also extended timelines for financial closure and project completion under the current scheme, following requests from stakeholders citing delays in loan approvals by banks and financial institutions. According to the Ministry, the existing scheme timeline will be subsumed under PM-KUSUM 2.0, with States advised to coordinate with banks to expedite project financing and implementation. The proposed battery storage integration is expected to enhance the reliability of solar-powered agriculture systems and improve grid stability, as the government prepares to scale up renewable energy deployment in the sector under the next phase of the scheme. (KNN Bureau)