Road to energy security passes through our farms, Pg10

Key Highlights:

• India faces structural vulnerability due to heavy dependence on imported fossil fuels and climate change threats to agricultural livelihoods.
• Agriphotovoltaics (Agri-PV) is proposed as a solution to transform farmers into energy producers, addressing both energy security and farmer income.
• The PM-KUSUM scheme, currently focused on solar pump sets, could be expanded to support farmer-owned Agri-PV projects.
• A pilot project in Rajasthan demonstrated a tenfold increase in farmer income, from Rs 40,000 to Rs 4 lakh per acre, through Agri-PV.
• Agri-PV has the potential to halve India's annual power tariff subsidy bill, which is approximately Rs 2.35 lakh crore, with agriculture accounting for 85%.

Detailed Insights:

• India's energy architecture is deeply import-dependent for power generation, transport, and fertiliser production, posing a strategic risk.
• The forecast of a strong El Niño in 2026 highlights the increasing threat of climate change to agricultural incomes.
• Agriphotovoltaics integrates solar power generation and crop cultivation on the same land, allowing dual use and dual income streams.
• Solar panels are mounted at a height of about 3.5 metres, enabling cultivation beneath them while generating electricity for sale to Discoms.
• Solar income provides a stable "third crop" that offers dependable earnings, unlike agricultural income vulnerable to weather and market fluctuations.
• The Comptroller and Auditor General of India's 2026 report, "Steering India’s Power Sector Towards Viksit Bharat," highlighted the significant power subsidy to agriculture.
• Agriculture consumes approximately 2,60,000 GWh of electricity annually, paying tariffs far below the actual cost of supply.
• The effective subsidy for agricultural electricity is roughly Rs 7.5/Kwh, contributing significantly to the Discoms' financial stress.
• Scaling Agri-PV requires supportive policy, including a differentiated Feed-in Tariff of around Rs 4.5/Kwh, to overcome higher initial costs.
• Extending support under PM-KUSUM Component A for farmer-owned Agri-PV projects can be a win-win for the government and farmers.
• Institutional innovations like solar cooperatives can aggregate smallholders, improve access to finance, and manage power sales collectively.

Key Concepts Involved:

• Agriphotovoltaics (Agri-PV): A system that combines solar power generation and crop cultivation on the same land.
• PM-KUSUM Scheme: A government scheme in India aimed at promoting solar energy use in agriculture, primarily for irrigation pumps.
• Feed-in Tariff: A policy mechanism designed to accelerate investment in renewable energy technologies by offering long-term contracts to renewable energy producers.
• Discoms: Electricity distribution companies responsible for supplying electricity to end-users and managing the local distribution network.