Kusum-A: Power regulator gives nod, fixes tariff

Kusum-A is Centre’s solar project which aims to make productive use of farmers’ barren land

RANCHI: The central government’s ambitious farm solar project, named Kusum-A, is about to roll out in Jharkhand, as the state power regulator has approved the solar power tariff for the scheme.

Earlier, state-owned power discom Jharkhand Bijli Vitran Nigam Limited (JBVNL) had submitted petition to fix tariff at ₹3.09 per unit, which was discussed by Jharkhand State Electricity Regulatory Commission (JSERC) at a public hearing virtually held on January 5.

The JSERC gave its approval to the tariff rate on Saturday.

JSERC member (technical) RN Singh said few potential farmers had pleaded for a higher tariff rate, which would have increased the rate of power to be sold by the JBVNL.

The farm solar project has been planned by the Centre to make productive use of barren land in possession of farmers and aims at doubling their income.

The solar power generated in the process would be purchased by power discoms. Interested distribution and supply companies would provide grid connectivity to receive the power generated from farm solar plants.

However, only about 25 farmers in Jharkhand has shown interest till now.

JBVNL chief engineer (commercial) Rishi Nandan said most of these farmers belong to Latehar, Garhwa and Lohardaga districts. “More farmers would join when the plan rolls out successfully,” he said.

Sharing details, Nandan said the cost of installation of solar panels and the plant would come around ₹5 crore per mega watt (MW). About 10 acres of land would be required to set up a 10 MW solar plant, he said.

As per the scheme, the JBVNL will purchase the entire power generated at the fixed tariff rate. Besides, the power discom would enter into a 25-year power purchase agreement with interested farmers.

The Centre would provide subsidy to power discoms at the rate of 50 paisa per unit against the power purchased.

Under the project, a farmer can produce minimum 0.5MW and maximum 2MW of energy from solar plants, the limit of which is to be set up by companies to be picked by JBVNL through an open tender soon.